BAA will not build the proposed third runway at London Heathrow Airport due to mounting opposition to the project.
Critics say that the third runway will not honour Britain's commitment to reduce greenhouse gas emissions by 80% by 2050, and may breach European limits on nitrogen dioxide levels.
BAA intended to increase annual flights to more than 700,000 and wanted to expand Heathrow to compete with European airports.
The UK's ruling Labour ministry had earlier approved the £9bn third runway and sixth terminal in January 2008 despite some opposition from residents and campaigners such as 2M Group.
The Conservative party was opposed to the initiative and several residents have refused to sell their plots on the proposed site to BAA.