London Luton Airport

TBI PLC
30 June 2003


                                    TBI plc


              London Luton Airport offers realistic alternative to
                   BAA dominance in the South East, says TBI

London Luton Airport today became the first major independent airport to release
its submission to Her Majesty's Government on Luton's role in the South East
Regional Air Services Review (SERAS).

The Airport owners believe that London Luton Airport has a realistic and
significant role to play in the critical issue of airport capacity in the next
30 years - and in its response offers a viable and environmentally sensitive
alternative to the vexed question of extra runway capacity for the South East of
England.

In its submission, London Luton counsels extreme caution in the apparent rush to
lay new runways - and makes it clear that it does not support either a new
runway at Heathrow, a third or fourth runway at Stansted - or indeed a new
airport at Cliffe.

Instead it proposes careful planning to maximize the use of existing runway
capacity at all airports before any commitment is made to construction of new
runways. Only then, and if absolutely necessary, would London Luton support a
carefully planned, monitored and managed approach to new builds of one extra
runway each at London Luton, Gatwick and Stansted (the '4x2' option).

Keith Brooks, Chief Executive of TBI plc, comments:

'We have long recognised London Luton's strategic and geographic importance to
this  debate, in addition to its position as a true competitor to the quasi
monopolistic BAA plc.  Luton boasts good infrastructure, a local community which
is supportive of increased capacity and is established at the forefront of the
expansion of low-cost travel.  We maintain that London Luton has the capability
of making a greater contribution than that foreseen in the Department of
Transport's original estimates.'

Paul Kehoe, Managing Director of London Luton Airport, comments:

'Despite a belief in their own primacy within the industry, ours is a strategy
which we believe the BAA should fully support. In 1999, BAA publicly urged the
Government to rule out any additional runways at Heathrow. They also admitted
this year that a single airport location such as Heathrow would be unlikely to
be able to provide either the extensive network of destinations required to meet
expected demand - or the high capacity and high frequencies needed on these
routes.

'We at London Luton are very mindful of the environmental impact that airports
have - as well as the economic benefits they bring. What we propose initially is
a responsible use of the spare runway capacity that still exists in the South
East of England. Only then, and if there is no alternative, we propose gradual
development towards our '4 x 2' option, which would ultimately provide two
runways at each of the four main London Airports.

'This would spread both the environmental 'pain' and the economic 'gain' around
London and Home Counties, allowing passengers convenient access to extensive air
networks from major airports within a catchment stretching from the Midlands to
the South Coast. It would also effectively end BAA's virtual monopoly around
London, and would encourage the competition that we regard as being central to
the growth of a vibrant and healthy UK economy.

'British Airways' and Virgin Airways' self interest is being promulgated as
being in the National interest, whereas we at London Luton see a more balanced
approach achieving the same effect.

'Geographically, logistically, economically and environmentally there is
absolutely no reason at all - other than inertia, tradition or blind prejudice -
for London Luton Airport to be anything other than a major player in the SERAS
debate. Luton, both as an Airport and as a Town is fully ready to play its part,
and I strongly urge the Government to give full consideration to our
submission.'



                                                                    30 June 2003





ENQUIRIES:


London Luton Airport                                  Tel: [phone]
Paul Kehoe, Managing Director
Natalie Raper, Customer Services Director

TBI plc                                               Tel: [phone]
Keith Brooks, Chief Executive
Caroline Price, Finance Director

College Hill                                          Tel: [phone]
Gareth David
Justine Warren





NOTES TO EDITORS

Copies of London Luton Airport's SERAS submission are available now for
download in PDF format at www.london-luton.co.uk. It is also available as a PDF
on request to: [e-mail].


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