Stobart had applied for a 300-metre extension to the runway so that it can handle more business and leisure travel traffic from Europe.

It had already begun work on a new railway station and control tower at the airport - due to open in summer 2010 and spring 2011 respectively.

The runway extension has now gained approval from Communities and Local Government minister John Denham. Stobart said that this means it will be able to offer “congestion-free” travel for visitors to the 2012 Olympic games – the airport is an estimated 40 minutes from the main Olympics park in Stratford.

Stobarts chief executive Andrew Tinkler said: “The development of this strategic asset also gives us a southern logistics hub and platform for the Stobart Group.”