British airport operator BAA Plc said on Monday it would close the oldest terminal at London's Heathrow Airport after a new fifth terminal is completed in 2008.
BAA said it had decided to close Terminal 2 because passenger numbers using the building would fall from 9 million a year currently to fewer than 1.5 million after airlines move into the new terminal.
"As a result, the forecast passenger flows in Terminal 2 are significantly reduced, thus giving rise to questions around the economic and operational viability of the terminal," BAA said in a statement.
A BAA spokesman said the decision would not affect proposals to spend up to 1.5 billion pounds ($2.62 billion) on a new passenger terminal at Heathrow in time for the 2012 Olympics.
BAA is currently building the 4.2-billion-pound giant fifth terminal at Heathrow, Europe's biggest construction project, which is due for completion in 2008. It also plans to close or redevelop Terminal 1 and renovate Terminals 3 and 4.
Heathrow is one of the world's most congested airports and is nearing peak capacity.