Following the new government's coalition agreement, which ruled out airport expansion in the UK in favour of high speed rail, BAA has formally cancelled its development plans.
The airport operator has now officially stopped work on the planning application for a third runway at Heathrow, and withdrawn its application to build a third runway at Stansted.
BAA will also stop buying up houses in Sipson, the village bordering the airport where the third runway would have been built.
Colin Matthews, BAA's CEO, said: "We recognise the importance of government policy in a matter as significant and controversial as runway capacity.
"Heathrow plays an important role for the UK and supports thousands of jobs. We continue to believe that new capacity would strengthen the UK's trading links with the global markets on which our economy and our competitiveness depend."
www.baa.com