Transport Secretary Patrick McLoughlin today joined bosses of Stansted Airport at the launch of an £80million project to transform its iconic passenger terminal.

Mr McLoughlin was joined at the ceremony by Mike Davies, chairman of Manchester Airports Group (MAG), which acquired Stansted earlier this year from the former BAA group, and Andrew Harrison, managing director at the airport.

The interior or the Lord (Norman) Foster-designed terminal is being remodelled to reflect changing trends in air travel, with most passengers using Stansted now checking-in online and travelling without checked-in baggage.

Features of the new layout will include an enlarged departure lounge and new security facilities, representing the biggest change at Stansted since the terminal building opened in 1991.

MAG is investing £40million in the project to revamp the terminal,supported by a further £40m that will be invested by commercial partners.

Mr McLoughlin said: “Just three months into its ownership of the airport MAG has shown it is prepared to invest in the infrastructure to improve passenger services and provide new facilities.

“The millions invested in this project will transform Stansted Airport’s terminal building and the way passengers use it. That’s not just good news for travellers, it’s also good news for the country because this sort of improvement to our transport infrastructure helps to make the UK more competitive in the global economic race.”

Mr Harrison added: “Today marks the start of a significant investment programme to transform the terminal and help deliver our ambitious plans to radically improve Stansted and make it the airport of choice in London for airlines and passengers alike.

“The way airlines and passengers use the airport has dramatically changed over recent years with far fewer passengers using check-in desks or travelling with hold baggage but spending more time in the departure lounge.

“This exciting transformation project responds to these changing trends and will create a quicker and more efficient security process and bring some sparkle to what is already a fantastic terminal.

“Our focus is to provide great service and facilities and put Stansted in the strongest position to compete effectively for new routes, airlines and passengers and this transformation of our terminal is a critical element in achieving this aim and central to our future growth plans for Stansted.”