In January 2009 the government gave the go-ahead to British Airports Authority (BAA) building of a third runway at Heathrow Airport. BAA, is the stakeholder of the airport, which defined an individual or group that has an effect on and affected by the activities of an organisation. Malcolm and Andrew (2011,p 308) There are three main reasons explained why the third runway is indeed needed. Firstly, release the workload of running at 99% capacity to satisfied current and forecast demand. Secondly, develop the competitiveness and UK economy in the competitors’ airports. Lastly, reduce the risk of working on the aviation industry once the existed runways have some problems then the Heathrow would lose business. This essay will show some stakeholders in favour as well as some stakeholders against for the event, Meanwhile, analyse the impact of the expansion at Heathrow on different stakeholders. Then, it will evaluate the common interests and conflicts with multiple stakeholders. The government is the most powerful stakeholder due to it had the power to decide whether the decision of expansion is carried out. The government considers that the new third runway would promote actively the economy. It will allow Heathrow to maintain its position as a global hub, create thousands of new jobs, generate economic growth and help UK businesses who need access to other major trading partners such as China and America. (Bized.co.uk, 2013) The government claimed that, the expansion of the airport would establish a new rail link between Heathrow and the north of England and Scotland. Lee Flindall illustrated it is estimated that a third runway at Heathrow will be worth seven billion pounds a year to the economy. (2009, p. 4) Geoff Hoon, the Transport Secretary，made an announcement that if cancel the project at Heathrow, the position of London as a centre of trade and finance would be threaten，that means vital international connection and globally competitiveness would be weakened.

BAA has a strong situation for expanding Heathrow as a result of the demand for an extra runway to relieve the existed pressure. BAA’s main statement is that, Heathrow currently handles 480,000 take-offs and landings a year. With only two runways, both of which are running at above 98% of their capacity. Flindall. (2009, p. 4) Aviation bosses said the existed hub is too expensive and overcrowded, warning that its service may decline unless it expands. (repeatting)BAA has a strong situation for expanding Heathrow as a result of the demand for an extra runway to relieve the existed pressure. BAA’s main statement is that, Heathrow currently handles 480,000 take-offs and landings a year. With only two runways, both of which are running at above 98% of their capacity. Flindall. (2009, p. 4) Aviation bosses said the existed hub is too expensive and overcrowded, warning that its service may decline unless it expands. However, more lights mean more revenue in the form of airport taxes and landing charges.

British Airways, the Confederation of Business Industry and the Trades Union Congress also welcome the decision. Sir Howard Davies stated that rely on existing runways would lead to "a distinctly sub-optimal solution". (BBC News, 2013) But there are those who support the plans with the London Chamber of Commerce and Industry saying it is necessary for Heathrow to expand to meet demand.

The strongest opposition comes from the especial group who emphasise the importance of environment. They concern the increasing emissions of carbon dioxide with a third runway. It is hard to imagine how the UK will cut greenhouse gases by 80% by 2050 if it is building a third runway at Heathrow. Colin Matthews, the chief executive, Heathrow argued, “Britain's carbon targets are important and we are committed to playing our part in delivering them. But they will be mere window-dressing if they are delivered at the cost of increasing global emissions. It is time for a more sophisticated approach.” (The Guardian, 2013) The environmental campaigners pointed that Heathrow already breaks the air pollution limits set by the EU, but the UK hopes to bypass this by committing to comply by 2015. Similarly, pledges to limit the number of flights in and out of Heathrow have consistently been broken as well because the third runway could see flight numbers reach 700,000 a year. Therefore, the expansion must be refused.

The bar rival airports and their own major airline customers would also argue against a bigger Heathrow. The airport operates at capacity, making it susceptible to major failure when bad weather or incidents dictate. The high landing charges it imposes and the prices paid when rare slots become available are testament to the eagerness of airlines to fly into Europe's busiest hub. (Topham, 2013) On the contrary, Tom Horton, American Airlines (AA) chief executive, said: Heathrow's charges were too high and there was demand for additional flights to London that the airport was unable to serve, adding that AA considered the airport's expansion to be the only way to bolster capacity in the UK. (Topham, 2013) Doug Parker of US Airways, who will replace Horton after the merger, said the charges at Heathrow were limiting airlines and their alliance partners. "We need to have a larger hub in Europe that is competitive with Frankfurt, Schiphol and Charles de Gaulle. We will not be able to expand in the way we want to," he added.

The local community drastically argued the Heathrow’s expansion plans. On the one hand, the position of the new runway, far from the existing terminals, will require a new, sixth terminal. The plan is to demolish hundreds of homes in nearby Sipson to accommodate the terminal. (Bized.co.uk, 2013) That means, 700 residents have to relocate their own home, along with the local primary school. On the other hand, some residents who have own business in this area or are elderly could not remove completely, as a result, they have to still live nearby the new runway. That means local residents have to accept the noise and air pollution, although it is intolerable and lead to a series of potential health problems. However, Colin Matthews, Heathrow's chief executive, said:" we are keeping the impact on local residents to an absolute minimum." It is very hard to see how you can square that with an overall reduction in noise level. (Topham，2013)

From the plan of expansion in Heathrow’ s airport, a series of common interests can be seen obviously. The fundamental beneficiaries are the group who are good at service industries as well as construction trades. Because the process of building a new runway could provide ten of thousands of jobs in the short term, it also could stimulate economic growth, especially in tourism, over the longer term; BAA and UK national airlines would achieve the higher evaluation and more foreign investment with the third way to be built as the UK’s largest airport; The other business groups also could obtain the higher benefits as the third runway established. However，among the different stakeholders, there exist the conflicts before the runway is finally started. The labour government have to solve problems properly regard to the relocation of local residents with the large budget；The British Airports Authority would cost plenty of time and funds to re-adjust their positions of whole employees and recruit new members, which may lead to the internal discordance in the beginning stages. At the same time, The UK national airlines would be faced with the contradiction between more flights and increasing pollution argued from the environmental campaigners. There have other some interesting argument. The residents of other community considered that the Gatwick second runway is more feasible than Heathrow expansion.

In conclusion, this essay has analysed the impact on stakeholders of BAA with the expansion of a third runway. As far as I am concerned, the most important stakeholder is BAA, the shareholder of Heathrow’s airport. One of the keys in that they know clearly the practical situation in now airport, hence, they insist that the expansion of plan is essential. In fact, there is no right answer regard to the expansion. It is only possible to find the balance between two main issues, the economic benefits as well as the environmental concerns. Colin Matthews, claimed, it is clear that the best solution for taxpayers, passengers and business is to build on the strength we already have at Heathrow. (The Guardian, 2013) Meanwhile, the airport needs to identify noise as the main political barrier to its expansion and hopes quieter planes, steeper flight paths and cleaner energy sources. the necessity for planning and public inquiries is likely to mean that there will lengthy procedures to go through, and finally, achieve a low carbon economy and sustainable development.

REFERENCES:

BBC News. 2013. Extra runway capacity 'needed'. [online] Available at: http://www.bbc.co.uk/news/business-24429443[Accessed: 10 Nov 2013].

Bized.co.uk. 2013. Biz/ed - Heathrow Expansion - Pros and Cons | Biz/ed. [online] Available at: http://www.bized.co.uk/blogs/tourism/2009/01/heathrow-expansion-pros-and-cons [Accessed: 9 Nov 2013].

Bized.co.uk. 2013. Biz/ed - Heathrow | Biz/ed. [online] Available at: http://www.bized.co.uk/dataserv/chron/news/3275.htm[Accessed: 8 Nov 2013].

Flindall, L. 2009. Stakeholder analysis: Do we need Heathrow's third runway. Business review, 15: 4-4

Malcolm. S and Andrew. G, 2011, Business Studies for A-level. 4th edn. London: Hodder Education.

Topham, G. 2012. No case for Gatwick airport expansion, says IAG's Willie Walsh. [online] Available at: http://www.theguardian.com/business/2012/dec/04/no-case-gatwick-expansion-willie-walsh[Accessed: 10 Nov 2013].

Topham, G. 2013. Heathrow airport too expensive and overcrowded, say aviation chiefs. [online] Available at: http://www.theguardian.com/travel/2013/jun/03/heathrow-airport-expensive-overcrowded-aviation[Accessed: 10 Nov 2013]

Topham, G. 2013. Heathrow third runway plans will bring 'louder sky of sound', sayopponents. [online]Available at: http://www.theguardian.com/environment/2013/jul/17/heathrow-airport-third-runway[Accessed: 10 Nov 2013].

Tutor2u.net. 2009. Q&A - What are stakeholders? [online] Available at: http://www.tutor2u.net/blog/index.php/business-studies/comments/qa-what-are-stakeholders[Accessed: 9 Nov 2013].