Cleared for take off: what Gatwick’s second runway means for the UK’s aviation and infrastructure future

The government’s recent approval of a second runway at London Gatwick Airport marks another significant chapter in the UK’s aviation and infrastructure narrative. Following similar expansion consents for Luton earlier this year and mounting speculation that Heathrow’s third runway could soon receive the green light, it is becoming increasingly clear that aviation is central to the government’s growth strategy.

This £2.2 billion privately funded development at Gatwick, primarily involving the repositioning and operation of the existing Northern Runway, promises to add up to 70,000 more flights annually, increase passenger capacity to 80 million and inject billions into the UK economy. However, with this ambition comes a complex interplay of legal, environmental and commercial considerations.

As a law firm with deep roots in the real estate and transport sectors, Freeths is closely tracking these developments. Our clients range from infrastructure developers and airport operators to logistics firms, investors and local authorities. Below, we explore the multifaceted implications of Gatwick’s expansion from a legal standpoint and the opportunities and challenges it presents.

A catalyst for economic growth and urban development

From an economic and real estate perspective, the expansion has clear upsides. Major infrastructure projects often serve as anchors for regional regeneration. With Gatwick set to attract thousands of new jobs, additional freight and passenger services and greater long-haul connectivity, local commercial and residential markets are poised for growth.

Development and planning considerations

The expansion will inevitably drive demand for:

• New logistics and warehousing capacity
• Hotel and hospitality developments
• Staff accommodation and housing schemes
• Business parks and service infrastructure

This brings forward the need for streamlined planning strategies. Developers and investors should be preparing now by acquiring land, navigating local development frameworks and initiating consultations with planning authorities. At Freeths, we are supporting clients through land assembly, strategic planning advice and negotiations with local councils to ensure readiness for the development ripple effect.

Commercial contracts and procurement risk

A project of this scale requires a web of interlocking commercial arrangements. From design and build contracts to supplier frameworks and airline services agreements, the legal drafting must be watertight, future-proofed and flexible enough to accommodate shifting timelines and regulatory changes.

Key legal considerations include:

• Risk allocation in construction contracts, particularly relating to ESG performance
• Environmental warranties and indemnities
• Public-private partnerships and funding structures
• Long-term airport concession arrangements
• Contractual safeguards around planning consent conditions
• Detailed assessment of competition law risks

The relevant stakeholders will require advice on structuring compliant, commercially viable contracts that align with the Civil Aviation Authority’s regulatory framework and relevant planning and transport statutes.

Employment implications

An airport expansion on this scale will create hundreds of new jobs not only directly at the airport but also across supporting sectors such as logistics, catering, engineering and security. However, this brings both opportunity and complexity.

Airport employers must consider:

• Local labour shortages and the potential need to relocate or recruit internationally
• TUPE implications for outsourced services
• Shift pattern compliance and working time regulations
• Airport-specific security vetting and employment law standards

Freeths’ employment team works with major transport employers to ensure compliance, workforce planning and dispute avoidance strategies, particularly in unionised and shift-based working environments.

M&A and investment outlook

With Gatwick’s expansion likely to accelerate long-term passenger and freight volumes, the airport becomes an even more attractive investment proposition. Expect increased M&A activity across:

• Aviation support services
• Ground handling and cargo businesses
• Travel retail
• Airport technology and automation firms

For private equity, infrastructure funds and corporates eyeing this space, it will be critical to conduct rigorous due diligence around regulatory risk, environmental liabilities and infrastructure capacity. 

Environmental and planning risks

No airport expansion in 2025 can be discussed without considering climate obligations. The Gatwick project has drawn predictable opposition from environmental groups and local residents, with criticism focused on emissions, noise and public transport capacity.

While the government has committed that the expansion must align with the UK’s Climate Change Act and net zero targets, this is easier said than done. The legal risks in this area are substantial.

Risks and mitigation strategies:

• Judicial review: Objectors may launch legal challenges, potentially delaying works or leading to revised conditions. Developers and stakeholders must prepare robust defence strategies grounded in consultation records, EIAs and legal precedent
• Environmental conditions: Gatwick has already agreed to stringent measures including noise insulation schemes, passenger travel targets and infrastructure contributions
• Carbon offsetting and ESG disclosure: Stakeholders will increasingly need to demonstrate compliance with carbon budgeting, TCFD reporting, and sustainability-linked financing obligations.

At Freeths, we work at the intersection of environmental law and infrastructure planning, supporting clients in both defensive and proactive regulatory compliance.

What this means for the wider aviation sector

The Gatwick decision cannot be viewed in isolation. It signals a wider policy shift that favours aviation growth even amidst climate commitments. It is a delicate legal and political balancing act.

With Heathrow's third runway still in the government’s sights, we may be entering a new era of airport competition, connectivity and investment. Regional airports, too, may now reassert dormant expansion ambitions.

Legal advisors in this sector must remain agile, multidisciplinary and forward-thinking - combining sector insight with technical expertise across real estate, planning, environment, commercial and corporate law.

Opportunity amidst complexity

The second runway at Gatwick is more than an infrastructure project. It is a litmus test for the UK’s ability to reconcile its growth ambitions with its environmental responsibilities. For those in the transport and aviation sectors, it is both an opportunity and a challenge.

At Freeths, we are proud to support clients navigating this fast-moving landscape, from early-stage land strategy through to construction, operation and beyond. Whether you are a developer, investor, operator or local authority, our cross-sector legal teams are ready to help you realise the opportunities and manage the risks.

For more information or to speak to one of our specialists in real estate, commercial, employment or M&A law, please discover more below.