Critics Say Ruling A Blow To Heathrow Plan

Critics Say Ruling A Blow To Heathrow Plan

March 26, 2010
Environmentalists opposed to a third runway at London's Heathrow airport claimed victory on Friday after a British judge ruled the government must review the project's climate change and economic impact.

The Labour government gave the go-ahead in January last year for a third runway and another terminal at Europe's busiest airport as part of a GBP£9 billion pound (USD$13.4 billion) expansion.

But the project has run into fierce opposition and a legal challenge from local residents and environmentalists concerned about noise and increased carbon emissions.

The opposition Conservatives, ahead in the polls before a national election widely expected on May 6, oppose plans for a third runway at Heathrow.

High Court judge Robert Carnwath said the government's argument that the policy of support for the third runway had been set in 2003, subject to the fulfilment of three environmental conditions, was "untenable."

The government must prepare a national policy statement, required to establish the case for major infrastructure projects, before the expansion can go ahead.

Carnwath said the preparation of the statement "will necessarily involve a review of all the relevant policy issues including the impact of climate change policy."

He said the national policy statement would also have to consider the economic impact of a third runway as increases in carbon costs would have a "significant effect on the economic picture."

"It makes no sense to treat the economic case as settled in 2003," he said.

Opponents of the plan, including local councils and environmentalists, said the ruling meant that the government would have to "go back to square one and reconsider the entire case for the runway" if it wanted to pursue its plans for Heathrow expansion.

AAR shares rise on Aviation Worldwide deal

AAR shares rise on Aviation Worldwide deal

By Bijoy Anandoth Koyitty

Stocks | Mergers & Acquisitions | Industrials

BANGALORE, March 26 (Reuters) - Shares of AAR Corp (AIR.N) rose as much as 6 percent on Friday, a day after it agreed to acquire Aviation Worldwide Services for $200 million to expand its services to government customers in the United States and abroad.

The acquisition of Aviation Worldwide Services, which provides airlift services and aircraft modifications to the United States and other government customers, indicates AAR's increased focus on the government business.

"The market for government aviation services represents a tremendous growth opportunity as our country provides resources and support for developing nations and other national interests," Chief Executive David Storch said in a release. [ID:nSGE62O0JQ]

CJS Securities analyst Lawrence Solow said the deal would help AAR's efforts to evolve as a prime contractor in the area of airlift services and aircraft modification for military.

"So the growth opportunity is that - the market is tremendous, it is growing as the defense budget is growing globally. So this deal will help AAR to penetrate into new opportunities," Solow said.

U.S. President Barack Obama in February had asked Congress to approve a record $708 billion in defense spending for fiscal 2011. [ID:nN01203835]

Government and defense customers accounted for nearly half of AAR's third-quarter sales. Solow said the deal would see AAR increasing its revenue share in the government sector to about 55 percent.

"It is been their strategy to try and get more and more into business with governments. Some of the synergies are, AAR is big on system support, part support, maintenance and repair," Solow said.

AAR shares were trading up 5 percent at $25.11 in afternoon trade on the New York Stock Exchange. They touched a high of $25.23 in morning trade. (Reporting by Bijoy Koyitty in Bangalore; Editing by Maju Samuel)