BAA has scrapped controversial plans to build the multi-million pound Airtrack rail link connecting Heathrow to the south-west due to lack of funds.
The £673 million project was ditched on Monday and the airport operator said it had no choice but to withdraw the Transport and Works Act Order application, for the Waterloo to Terminal 5 service via Staines.
Plans for Airtrack have been mooted since it's launch three years ago, with concerns over traffic issues and more recently the likelihood of no public sector funding to support it.
However, the announcement was a joyous occasion for local residents, campaigners and businesses in Egham and Staines who celebrated the news having strongly opposed plans due to traffic congestion and fear of closing down businesses
Allan Gregory, Heathrow's surface access director, said: "We've listened to the concerns raised by local residents about the impact of Airtrack and worked hard to try and resolve issues including level crossings.
"Despite our considerable efforts, including discussions with Network Rail and the local highway authorities, we have been unable to develop solutions which fully address these concerns."
"We have considered alternative scheme options and how these might be funded but in the absence of securing additional funding in the current economic climate, Heathrow Airport is unable to justify meeting the full cost of the project."
Transport Minister and local MP Philip Hammond said the decision to shelve the plans was correct.
He said: "We have been going back and forth for the last few years on this, but could not find a viable solution and they have rightly, in my view, decided to abandon it.
"Wearing my departmental hat I will be working with them [BAA] to make sure we get good connectivity for the Great Western and HS2."
As BAA washed its hands off Airtrack, it introduced a new programme known as Wider Heathrow Integrated Rail Strategy (WHIRS).
Under the scheme, focus will move to ensuring Crossrail, Heathrow Express and high-speed rail together provide more connections for passengers to the airport, whilst improving links to the surrounding community and further afield to regional areas.
With a £230 million commitment to Crossrail, the airport operator is the largest private sector contributor to the service, connecting Maidenhead and Heathrow in the west to Shenfield and Abbey Wood in the east.
As part of WHIRS, BAA will also look to build on its previous £1 billion plus investment on the Heathrow Express and other rail services, by enhancing the premium service to Paddington, and welcomed government plans to place Heathrow at the heart of the UK's high speed rail network, linking it to regional stations including Birmingham.
Allan added: "Improving rail services to Heathrow is one of our key objectives. We have a once in a lifetime opportunity to link Heathrow with high speed rail, Crossrail and the national rail network and we look forward to working with the Department for Transport,
Network Rail and others to realise this vision, which will deliver benefits for businesses in the Thames Valley, London and the whole UK economy."
I just wanted to highlight a couple of points: BAA has the MOST expensive train service in the UK (Heathrow Express). Only offering a service between T5 and Staines was never envisaged precisely because BAA wouldn t be able to charge astronomical fares.
BAA never addressed the concerns about the levels crossings: their latest proposal proves it. Surrey County Council was ready to forget about the interest of local residents for a £11b bribe. Money talks! Network Rail's attitude is the worst: they are the cause of this problem with excessive downtime at the crossings. Local residents and businesses were so against the Airtrack project because they know perfectly well the issues related to these crossings: In response to Doc Martens, we are already sit in our cars in traffic jams waiting for barriers to open, the issue is that buses, and ambulance also wait. Not to mention the impact on local properties: who would dare to buy a property ONLY accessible 15mins. If BAA, Network Rail and SCC came with solutions ealier, Airtrack might not have been cancelled. They are firmly responsible for this chaos and botrched consultation.