• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Should a new runway be built at Leeds-Bradford?

Extracts from this document...

Introduction

Should a new runway be built at Leeds-Bradford? Background In July 2002, the Government began a UK-wide public consultation on 'The Future Development of Air Transport in the UK.' This outlined the government's policies on meeting expected air transport needs for the next 30 years. It was decided that a new runway would be required in the Midlands within thirty years and plans were also made to locate a second runway at Birmingham or East Midlands. It was even proposed that a new airport could be built at Warwickshire. It is highly possible that soon Leeds-Bradford will become congested and in need for expansion as are these other districts mentioned above. Whether or not is it feasible to build a new runway at Leeds - Bradford airport depends on the negative and positive externalities that will occur as a result. An externality is a consequence that occurs when a business decision is made; it can be either good or bad. Numerous arguments say that it is an advantageous move that will benefit mostly everyone either directly or indirectly; however others believe the environmental implications of the new runway will outweigh the useful outcomes that its construction will create. By utilizing cost/benefit analysis it is easier to weigh up the advantages and disadvantages of the above business venture more effectively. Problems Firstly I will describe and explain the problems (negative externalities) ...read more.

Middle

Improved flexibility to reach customers and prospects allows for an increase in time efficiency thus the business as a whole becomes more efficient. The creation of more business in Leeds and Bradford could be brought on by the construction of a new runway. Business leaders have ranked external transport links in the top three factors for business location hence a new runway could attract new commerce to locate here consequently creating more jobs for residents in the surrounding area. The wide range of destinations and frequency of flights from the UK have helped the country become the top European destination for inward investment. These factors improved as a result of a new runway would allow further investment in the UK thus helping the economy moreover. External economies of scale would likely be created if a new runway was built as it would allow extra planes of larger sizes into the country through Leeds - Bradford Airport that would permit more flights to run more often. The expansion of the airport could result in a subsequent decrease in costs for companies working within the airport, for example the new runway would allow businesses to have better choices over which airline exports their goods to other countries so therefore a cheaper airline may be chosen. (Only relevant to manufacturing industry within the airport.) They may also benefit from an increase in the number of passengers using the airport since they may sell more goods (if duty free) ...read more.

Conclusion

Unfortunately the new runway would generate a larger accumulation of traffic on the roads that would affect both the internal and external stakeholders namely the workers and the local community. Suppliers to the airport and the businesses within it would grow as orders would get larger as the amount of aeroplanes using the airport increased. Taking into consideration the advantages and disadvantages to building a new runway at Leeds - Bradford Airport I have come to the conclusion that the business venture is a sound one. However it is a fact that aviation is the U.K's fastest growing source of Carbon Dioxide emissions and it is probable that a new runway would add to these discharges. Unless the emissions were somehow minimized than I doubt that the runway would be environmentally viable anyway. Houses close to the airport e.g. Horsforth, Yeadon e.t.c. subjected to increased noise levels are likely to decrease in value but it is probable that the property owners would be subsidized in one way or another by the government to ensure that when it came to selling their house they would not be at a disadvantage. Augmented levels of noise pollution are bound to irritate local residents but the economical benefits and need of expansion overcome the small discrepancies a new runway would produce if the move went ahead. I think it would assist the North's growth immensely by way of new businesses locating here as well as helping Britain along to becoming an example for others to follow. James Black 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. The structure of the airline industry.

    Coupled with the price drops, air travel became a more favorable way to travel. Today there are no close substitutes for travel over 150 miles. However the trend of an influx of airlines eventually turned into many mergers, acquisitions, and bankruptcies in the late-1980s to early-1990s (see Figure 1).

  2. Retailing In India - A Government Policy Perspective

    Yet our evidence suggests that they are largely ineffective. In many cases, governments give away substantial sums for investments that would have been made anyway. India, for instance, waived its 35 percent tax on corporate profits for companies that moved back-office processing and IT jobs there-a concession worth roughly $6,000

  1. Environmental Analysis Of Landis Lund.

    Private investment and entrepreneurs are the norm. Companies sell products at the price they want, to who they want. The same goes for the consumer, they are free to spend their money on what they want. In capitalist societies there is little or no barriers to entry, anybody with an idea and some capital can start up a business.

  2. Free essay

    From an economic perspective should my council do more to recycle a greater proportion ...

    Council Percentage of household waste recycled Elmbridge 37.4% Epsom and Ewell 31.2% Guildford 40.6% Mole Valley 51.6% Reigate and Banstead 39.9% Runneymede 25.1% Spelthorne 31.2% Surrey Heath 32.2% Tandridge 29.2% Waverly 40.1% Woking 41.1% This table shows my council's (Epsom and Ewell)

  1. Transaction Cost Theory

    out the transaction in the open market" (quoted in Best, 1990, p.112). This dependence on substitution at the margin is a failing of neoclassical theory, too, Best argues, and it is a failing because it does not take into consideration that the firm may continue to grow until the industry

  2. The airline industry

    Since the attacks insurance companies immediately increased insurance premiums and reduced cover for war/terrorist liability to $50 million "per event" (Economist, 2002b). Although many governments subsequently agreed to become insurers of last resort for airlines' war and terrorism liabilities, they did so for a limited period only and the need

  1. Selecting international modes of entry and expansion

    Because US and Japanese firms are often major competitors in foreign markets, gaining insights into the thought processes of national competitors may also be useful to managers and researchers in understanding and predicting their modal choices. This article identifies and compares the most influential factors that affect the international modes of entry and expansion decisions of US and Japanese firms.

  2. The Ohio Pilot Scholarship Program

    In public education's "nonmarket" of economic insulation, it is students, parents and teachers who are the losers and only unions that are the winners. The liberal opposition to real school choice is not hard to understand. What is hard to understand is America's continued toleration of it.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work