In this paper we address the potential gain of using compact MIMO antenna array configurations in conjunction with HAP (High Altitude Platforms) diversity techniques in order to increase the data rates in HAP communication systems. We will also investigate the effects of spatial correlation and mutual coupling between the separate antenna elements on system performance. Simulation results show that although the capacity is degraded by correlation and mutual coupling, we still achieve significant capacity gain compared to the single HAP case. In addition, we evaluate the performance of the system for different separation angles between HAPs, and determine the optimal separation angle that maximizes the total capacity of the system. © 2008 Springer Science+Business Media, LLC.