Households affected by noise from a second runway at Gatwick Airport would receive annual compensation of £1,000, under proposals outlined today.
More than 4,000 households could qualify for the scheme. Residents paying council tax and living within the area of 57 decibels of noise would be able to claim.
Payments would start if and when the proposed runway (pictured) becomes operational.
Gatwick Airport is competing with Heathrow in a bid to build another runway in southeast England. In 2012, chairman of the Airports Commission, Howard Davies, was asked to investigate the options for increasing aviation capacity in the UK.
In December he unveiled the short-listed options – new runways at Heathrow and Gatwick, and an extension of Heathrow’s existing northern runway.
A lot of the debate has centred around the environmental impacts on residents close to the two airports.
Gatwick Airport's CEO, Stewart Wingate, said despite the many positives a second runway would bring to the local community, it must recognise the negative noise impacts.
“How we best compensate communities affected by major infrastructure projects is an issue facing a growing number of sectors - from aviation to energy," said Wingate.
"Our proposal would see the people most affected by expansion at Gatwick receiving monetary compensation.
“Under the scheme, we are pledging £1,000 towards council tax for qualifying households in the local area, if and when a second runway became operational.”
Wingate said environmental issues are at the centre of the debate about runway capacity in the southeast and so compensation for residents is at the heart of its expansion plans.
"This scheme will be a cornerstone of our planned package of measures for local residents," he added.
Gatwick claims its location to the south of London means the potential impact on people is at a much lower level than at Heathrow.
Earlier this year Gatwick announced plans to roll-out one of the largest noise mitigation schemes in the UK and across the rest of Europe, offering local homes up to £3,000 towards double glazing and loft insulation.
Gatwick said more than 40 per cent more homes will be protected from noise than were covered with the old scheme.
Read an analysis of the Davies commission's interim report for UK airports.