The government has won its appeal against a court decision that Heathrow night flights violated the human rights of local residents.

In 2001, eight people living near the airport won their case in the European Court of Human Rights that a decision made by the British government to ease restrictions on night flights breached their "right to respect for private and family life and home" and for the "peaceful enjoyment" of their home.

On Tuesday the decision, which was not legally binding, was reversed by the same court after the Department of Transport stressed the potential economic impact of suspending the flights, giving European rivals to Britain airlines an unfair advantage.

Ministers said the result addressed their key concerns.

"The government welcomes the court's final judgment," said transport minister Tony McNulty.

"The Grand Chamber has provided the much needed clarity that the government and others were looking for. This result fully vindicates the government's decision to ask the Grand Chamber to take a further careful look at this difficult and controversial area.

"Today's judgment clears the way for a thorough review of policy on night flights at Heathrow, Gatwick and Stansted. That consultation, which we announced earlier this year, will take place next year.

"In the meantime, while the government welcomes today's judgment, it will need to consider its implications very carefully."

But Jenny Tonge, Liberal Democrat MP for Richmond, warned that the campaign would continue.

"I am desperately disappointed that the European Court of Human Rights has not stuck to its guns and defended residents from noise at night," she said.

"But the fight will go on. The government must not think for a moment that it can get away with unlimited expansion of air transport. It is simply not sustainable and the damage both to the environment and to people's lives, is too great.

"Ministers must now be persuaded to minimise the damage, use their powers under EU law to reduce the noise and withdraw their proposals for a third runway at Heathrow which would just add insult to injury."