Campaigners oppose the expansion of the UK's airports
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Residents near Stansted Airport must be given a say over where an additional runway is sited and how much land it uses, the High Court has ruled.
There must also be more consultations over Luton Airport expansion, it said.
Campaigners said it was a "victory for local democracy" and the government must now go back to the drawing board.
But as the court said proposals for new runways were otherwise lawful, a "pleased" Transport Secretary Alistair Darling said the plans were on course.
He noted that the High Court "has upheld the case for two additional runways in the south east of England at Heathrow and Stansted and rejected calls for that part of the Air Transport White Paper to be quashed".
"The government has always accepted that the exact positioning and capacity of the runways at Stansted and Luton will be decided by the normal planning process."
'More uncertainty'
Peter Sanders, chairman of the Stop Stansted Expansion group, said the government should now "completely withdraw its support for major expansion" at the airport.
But Mr Sanders went on: "The High Court decision has the perverse effect of creating even more uncertainty for the local community in the foreseeable future."
Stansted Airport managing director Terry Morgan said options were being examined with a view to identifying where another runway could be located.
"We will share this with the local community, our airline customers and others with the aim of submitting our planning application in spring 2006," he said.
"We are pleased with today's judgement. It gives us the green light to prepare the case for a second runway at Stansted.
'No consultation'
The court also said that a government White Paper had "unfairly managed to convey the impression" that plans for the extension of an existing runway at Luton Airport "had been consulted upon".
"Fairness required a clear acknowledgement that it had not been consulted upon," it said, adding that there must now be full consultation as to whether the proposal was "a more cost effective approach".
London Luton Airport Operations (LLAO), which runs Luton, said it "welcomed the clarification given".
It had always been "open and transparent" about its expansion aspirations and had always assumed that any option for achieving a single full-length runway would require a full and public consultation, a statement said.
Peter Hunt, spokesman for Luton and District Association for the Control of Aircraft Noise (LADACAN), hailed the judgement as "a victory for people power".
"The government has been found to have not consulted properly and it's very pleasing that we've been vindicated," he said.
'Plan intact'
John Stewart, chairman of HACAN Clearskies, which represents residents under the Heathrow flight path, said he was disappointed the case for an additional runway at the airport was upheld.
"But our first thought is that this is a setback for the Department of Transport because the judge has called for full consultation on any proposals the government will come up with - we're very pleased with that," he added.
A BAA spokesman said the judgement was regarded as "good news".
"BAA can now get on and deliver the extra runway capacity in the South East that the UK desperately needs," he said.
As far as BAA was concerned, he said, the legal challenge had left the government's plan intact.
"The White Paper continues to provide a vital long-term framework for UK airport development," he said.
Meanwhile, the CBI also welcomed proposals being judged as lawful, saying runway capacity in the south-east was vital to the UK economy.