FRANKFURT (Dow Jones) – German airport operator Fraport AG Friday said a court had cleared its EUR4-billion plans to expand Frankfurt's main international airport.

The plan, which was cleared by the administrative court of the state of Hesse, includes building a new runway at the airport.

However, the court also ruled that the state of Hesse must come up with new rules governing night flights over the Frankfurt area.

The move comes as other large European airports are also considering expansion plans, even though the industry is undergoing one of its worst ever downturns as economic woes have slashed passenger numbers and cargo volumes.

In each case, expansion plans have polarized opinion, with businesses saying expansion is key to the growth of the economy, and local and environmental campaigners complaining about noise levels and the environmental impact.

The UK government earlier this year approved plans for a third runway at London's Heathrow airport, Frankfurt's larger competitor as one of Europe's major hub airports. The decision came after intense lobbying by businesses and the airport operator BAA, who said Heathrow's expansion was key to maintaining the competitiveness of the airport and to future growth of the UK economy.