The Government has rejected a Heathrow expansion offer from Sir Richard Branson.

Airport news for Heathrow,Travel on 12/03/2012.

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The verdict from the Transport Department came after Virgin tycoon said that he would spend £5 billion in investments to expand Virgin Atlantic if the current government would abandon its current blockade on expanding Heathrow airport.

However, officials said on Sunday night that transport heads were committed to examining every possible avenue in the effort of developing a suitable aviation framework for Britain, with the sole exception of adding a third runway at the grossly overcrowded west London facility.

Branson had made the offer via The Sunday Telegraph, noting that if ministers were to forgo rethinking the possibility of adding another runway at Heathrow that the industry would opt to create thousands of jobs in an alternative location.

Meanwhile, the Government’s current aviation debacle continues to thicken; four major carriers - Virgin Atlantic, Ryanair, EasyJet and British Airways - said today that they have joined forces and are demanding a freeze on the UK’s air passenger duty, noting that next month’s scheduled rise in the rate will add up to a whopping £500 for a family of four flying to Australia.

Still, sources say the Treasury is counting on additional £4.8 billion in revenues generated by APD rises over the coming four years.

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