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Stansted Airport operator BAA is withdrawing its bid to build a second runway at the Essex airport.
A second runway was backed by the Labour government in its 2003 aviation White Paper and at one point it was hoped that it could be open by 2013.
But plans became delayed at the planning stage and in their manifestos, both the Conservatives and the Liberal Democrats stated that they would scrap the scheme.
The axing of the scheme has been confirmed by the new coalition Government.
Stansted's managing director David Johnston said, "We have reflected carefully on the new Government's clear intention to change airports policy and have moved quickly to withdraw this application.
"Stansted is a key driver of economic growth in this part of England, and we will continue to work hard to bring new business here and to work with our neighbours, and the wider community, to provide jobs and strong business and travel opportunities in the months and years ahead.
"We continue to believe that new airport capacity is needed in the south east of England to strengthen the UK's international trading links."