Plans to triple the size of London Luton airport by 2030 as part of a £1.5bn development scheme have been scrapped

The airport’s owner, a consortium led by Spanish infrastructure company Albertis, announced today that plans to deliver a full-length runway in time for the 2012 London Olympics were dropped because it predicted insufficient returns from its 30-year lease from Luton Borough Council.

Demetrio Ullastres, chairman of TBI, the holding company for the airport, said: ‘We will not be pursuing this option further.’

He said the group would instead ‘focus on making the most of the existing airport site in order to fulfil our shareholders expectations’.