By Guy Taylor The government has granted London City Airport permission to significantly expand capacity, in one of the first signals of its approach to growing Britain’s aviation sector. The plans mean the City hub, which is particiularly popular among London’s business elite due to its proximity to Canary Wharf, can increase its annual passsenger cap from 6.5m to 9m passengers and fly three extra flights in the first half hour of operations. It comes after an extended spat between the airport and Newham Council, which voted to block the proposals in April last year due to their impact on the…