UK must back single hub airport to ensure growth

[LONDON] Britain should back the development of a single hub airport to lock in essential trading links to emerging markets and ensure long-term economic growth, the Confederation of British Industry said on Monday.

Hubs such as London Heathrow, Europe's busiest, "act as a catalyst for new routes", serving almost three times as many destinations as point-to-point rivals, according to a CBI report based on research by Steer Davies & Gleave. Each service to a high-growth market can boost trade by as much as £128 million (S$265.6 million) a year, the CBI said.

The industry group's comments appear to favour expansion of Heathrow over the development of London Gatwick, Europe's top single-runway airport, after the pair were identified as the best options for a new landing strip serving south-east England. A state-appointed Airports Commission is poised to decide if London Mayor Boris Johnson's plan for a new hub in the Thames Estuary should also be considered, though a recommendation on the best option isn't due until after the 2015 general election.