Heathrow cleared for third runway take-off

LONDON (Reuters) - The government has given the go-ahead to building a 9 billion pound third runway at London's congested Heathrow airport, delighting the aviation industry but enraging environmentalists.

Transport minister Geoff Hoon also told parliament he was approving the construction of an extra terminal at the world's busiest international airport, less than a year after it opened its fifth terminal after much delay due to opposition from campaigners.

Hoon said the airport was running at 99 percent capacity, and as such was losing business to international competitors.

"This makes the UK a less attractive place for mobile international business...the airport is critical to this country's long term economic prosperity," he said.

He added that the government was setting up a new company to look at the potential of building a new high-speed rail link from London to Scotland, via a Heathrow hub station.

The third runway is backed by business and the aviation industry, which say it will help Britain's economic competitiveness, but fiercely opposed by environmental groups, opposition parties and some members of the Labour Party.

Supporters say the third runway is needed to enable Heathrow to run more efficiently and to cope with expanding air travel.

Heathrow, owned by Spain's Ferrovial, handles 65 million passengers a year.

Business leaders have often criticised the airport's congestion, long queues for security checks and delays.