Plans for a second runway and terminal at Luton airport have been dropped.
Parent company TBI made the surprise announcement this morning.
New development proposals for the period up to 2015 will be unveiled later this year.
TBI said it intended to “focus on making the most of the existing site”.
Chairman Demetrio Ullastres said: “We are committed to the delivery of facilities tro meet the needs of our customers and at the same time fulfill our shareholder expectations.
“Therefore, we have decided that our proposals should focus on making the most of the existing airport site.
“As a result we have withdrawn the current Master Plan (issued for consultation in October 2005).
“This described a full length replacement runway 950 metres to the south of the existing runway with adjacent terminal facilities. We will not be pursuing this option further.
“The proposals to be published later this year will set out the framework for the airport’s development over the next eight years.”
by Phil Davies
