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Should a Fifth Terminal be built at Heathrow Airport.

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Business Studies: Should a Fifth Terminal be built at Heathrow Airport Introduction Heathrow, built on London's Breen Belt, is the world's busiest international airport and Europe's second largest airport. Adding to the 3000 acres containing 4 terminals, 2 runways, roads and car parks, plans have arisen concerning a 5th terminal causing major public concern. This concern is that, along with all the good affects, there will be a lot of worrying affects that the local public have objected to. My objective is to weigh up all these issues and come to a conclusion that will maybe look towards other alternatives. In doing this I have to look at the externalities that Terminal 5 will create. Externalities are affects from an activity on a third party, a party other than the buyer or seller. In this case, the third party is the general public. Existing Problems Heathrow has been labelled as "the big polluter"1. This is because Heathrow contributes a large amount of the pollution in the air that we, the public, breathe in. This is due to a combination of smoke from flights and cars accessing the airport. The problem is so bad that tests in residential areas near the A4/M4 corridor have found air quality tests consistently below World Health Organisation (WHO) ...read more.


Quarrying will damage these landscapes beyond repair, which might be regretted if the fifth terminal doesn't live up to BAA's expectations. Positive Externalities The 5th terminal may have caused a public outcry, but the new plans will also benefit a lot of people. The BAA feel that Terminal 5 is an economic necessity, here's why: * More jobs will be created by the extra terminal such as jobs in construction and jobs in the terminal as well as more pilots and flight assistants. This will bring the unemployment rate down and helping the economy grow. As well as this, more money will be being spent in the economy, meaning more demand. This is known as multiplier effects * Without the terminal, Heathrow will lose business and stature to other European airports. * A recession would be less likely due to the multiplier effect. * Existing business will benefit, as more people will be attracted to the area, which would improve the local community spirit. There are some benefits to the proposal of Terminal 5 but are out outweighed and outnumbered by the negative affects it will cause. This is because the negative externalities will affect far more people than the positive externalities will. For example, more people will be disturbed (every one in the flight path) ...read more.


Conclusion Heathrow Terminal 5 was planned to be bigger than the whole of any other airport in Europe. So I think that it might be necessary that a new airport should be created instead of constant expansion on the same airport. One opinion is that the constant expansion of Europe's biggest airports is petty competition when the only losers will be the country's economy 2. This is because the only competition between airports is for people changing planes. The minority enter our country, only to pass through instantly doing nothing for our economy. A new airport would have the same affects; it would increase flights and maybe help the economy. But more importantly it would keep the public happy with minor disturbances and jobs created to maintain the standard of living that they have become accustomed to. However, a new airport would still cause mass disturbance to wherever it is installed. But this cannot be prevented, so maybe it would be better to build it where the jobs will be even more welcomed and where the inevitable disturbances would affect less people than in and around the nations capital. The new airport might complicate flight timetables, and with the current number of delays, this would not be welcomed by travellers. There is no simple resolution to this matter, but as I have proved, Terminal 5 would put the public into a disruptive community in which the people effected will live. ...read more.

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