A £344m plan to expand London City Airport has been given the green light by ministers.
The ambitious programme includes an extended terminal, seven new aircraft taxi stands and upgraded public transport links.
London City Airport estimates the project will create 2,000 new staff and construction jobs and will add an extra £750m to the UK economy per year.
The planning decision was formally approved by Transport Secretary Chris Grayling and Communities and Local Government Secretary Sajid Javid.
London Mayor Sadiq Khan withdrew his predecessor Boris Johnson's objection to the airport buying the public land it needs to expand in May.
Chancellor Philip Hammond said the investment was a "vote of confidence in the resilience of our economy" and would “strengthen the city’s status at the world’s leading financial centre”.
Mr Hammond said: “London City Airport’s ambitious growth plans will boost international connections, strengthening the City of London’s links to destinations across the world, and send a clear signal that Britain is open for business.”
Declan Collier, the airport’s CEO, said the move showed the new Government was ready to act in “the best interests of the British economy”.
The airport said the expansion would allow for an extra 32,000 flights by 2025, which are already permitted.
But Green Party spokeswoman and London Assembly Member Caroline Russell has slammed the "reckless" decision and described the plan as "terrible news".
She criticised Mayor of London Sadiq Khan for "paving the way" for today's decision.
She said: "When Sadiq Khan took office he withdrew the previous Mayor’s opposition to the City Airport expansion plans and in doing so he paved the way for today’s decision by the government.
“He has pledged to be 'the greenest Mayor London has ever had' and this week announced his vice chairmanship of a key global climate change committee.
"But by effectively giving these airport expansion plans his seal of approval back in May and refusing to stop the toxic Silvertown Tunnel project nearby, he is not showing himself to be worthy of that title.”
Mr Khan said the expansion would bring "much-needed new employment" to the area and show that "London is open to trade and commerce globally".
But critics are arguing that the expansion will only lead to more traffic on London roads, more noise and more pollution.
Robert Barnstone, from the anti-expansion group Hacan East, said: “Today many residents face a double whammy blow.
"Earlier this year, City Airport concentrated its flight paths. This meant vast swathes of people from east & south east London were subjected to more aircraft noise.
The go-ahead for the expansion of City Airport comes amid continued delays over a decision for a new runway at Heathrow or Gatwick.
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