NORTH-EAST businesses have welcomed the Airports Commission decision to back a third Heathrow runway saying it will safeguard vital trade links and boost the regional economy.

Sir Howard Davies's report said that the new runway should come with severe restrictions to reduce the environmental and noise effects.

Night flights should be banned and the government should make a Parliamentary pledge not to build a fourth runway.

The report also recommends an aviation noise levy to fund insulation for homes and schools and says a legal commitment should be made on air quality.

The Commission admits that expanding Heathrow would mean many more people affected by noise compared to expanding Gatwick.

But it claims that quieter aircraft and home insulation would mean that overall noise levels would fall for people living near the airport by 2030.

The new runway would cost £17.6bn to deliver. Road and rail links around the airport would also have to be substantially changed, which could cost up to £5bn.

By contrast, a second runway at Gatwick would cost just over £7bn.

The Commission believes that both schemes would be funded by private finance.

David Laws, Chief Executive at Newcastle International Airport, said: “We have had great faith in the process undertaken by Sir Howard Davies and his colleagues on the Airports Commission.

“We are very pleased that the Commission has made what we consider to be the right recommendation. Heathrow is the UK’s only hub airport, and is one of the most important hubs in the world, but it is full.

“The North-East currently enjoys good connectivity into Heathrow with up to seven British Airways services a day, delivering 500,000 passengers from the North-East. By constructing a third runway, and providing additional capacity, these services can be safeguarded, but can in the future also connect to a much wider range of global destinations.

“We urge the Government to agree to the recommendations of this Commission at the earliest opportunity, and set about the process of delivering this globally important scheme.

“There will be local political opposition to the third runway, but this must be overcome, as the building of the runway will be in the national interest.”

North East Chamber of Commerce Chief Executive, James Ramsbotham has said: “Today’s Davies Report has given the right recommendation. While we want as many direct flights coming in and out of North East airports as possible, an expanded national hub is an essential requirement.

“The economic benefits of a third runway at Heathrow Airport are way in advance of any other options. Many of these benefits are set to be of advantage to regions outside the South East, ourselves included.

“The Commission has done what the Government has asked of it in that their recommendation represents the needs of the United Kingdom as a whole. The onus is now on our politicians to make a final decision and implement this without delay.”

Councillor Iain Malcolm, Leader of South Tyneside Council, and Lead for the LA7 Shareholders, said: “The future success of the North East economy is dependent upon our region having good connectivity.

“In recent years we have secured services to key global hubs, including Dubai and New York, to compliment the likes of Amsterdam, Paris and Brussels.

“In terms of passenger numbers, however, Heathrow remains our largest hub connection. I welcome the fact that in recommending the expansion of Heathrow, the Airports Commission has recognised it’s importance to regions such as the North-East.

“The Local Authorities will now work with the team at the airport, and other regional stakeholders to encourage the Government to back this recommendation and move ahead with the new runway.”

Paul Woolston, Chair of the North Eastern Local Enterprise Partnership, added: “The Strategic Economic Plan for the North-East is aimed at delivering more and better jobs.

“This can only be achieved and is supported by better transport networks, connecting the North-East to that national and international economy.

“The expansion of Heathrow would help safeguard both our national and international connections, ensuring north eastern businesses are able to continue to benefit from the connections currently available. Moreover, businesses would eventually be able to exploit the opportunity provided by an expanded range of routes to growth markets that the new runway would open up.

“We are keen to see the government now commit to the delivery of a third runway at Heathrow, with connectivity for regions like the North-East at the heart of this decision.”

The report's release has revived intense debate over the runway's environmental impact.