Mr N.J. PAYNE (Paper 11): The price and avail

ability of fuel is one of the critical factors

in the future development of air transport.

In the air and on the ground the industry is absorbing the impact of price increases and working to improve fuel efficiency. ' Meanwhile growth in air traffic will continue, but at lower rates than in the past. Although there is therefore no longer a need for new airport capacity on a large scale, London's airports will not be able to meet the demand without major development.

As a result, the British Airports Authority is pursuing a strategy which has three main features: a further terminal at Heathrow, foi* which permission has been granted; a second at Gatwick, for which permission is awaited, and a new one at Stansted, which will be the subject of a public inquiry later in 1981.

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