CASH-STRAPPED councils across the North-East have received a massive windfall from their stake in the region's biggest airport.

Seven councils in the region are to share an £80m dividend as shareholders, following the restructuring of finances at Newcastle International Airport.

The size of the pay-out varies from authority to authority, but is understood to be worth a much-needed £11m to Durham County Council.

The authority - along with South Tyneside, North Tyneside, Newcastle City, Gateshead, Sunderland and Northumberland - agreed a public/private partnership deal in 2001, which leaves the councils owning 51 per cent of the airport, with the rest owned by Copenhagen Airports.

The dividend is part of a restructuring package ahead of a £100m expansion of the airport, but the size of yesterday's dividend payment is down to the rapid growth of the business.

Passenger numbers at the airport, which opened in 1935, have soared in recent years - partly because of the arrival of low-cost operators such as Easyjet.

In 1999, 1.67 million passengers passed through the airport's doors, but the number has climbed to 5.6 million this year and the numbers are projected to keep on rising past the nine million mark within ten years.

Work is already under way on a new hotel, business park and air traffic control centre.

Councillor Iain Malcolm, deputy leader of South Tyneside Council and a member of the airport's board, said: "This latest announcement provides significant confidence for the future and demonstrates, once more, that Newcastle International Airport delivers great value and benefits for the community it serves."

The windfall payment was warmly welcomed by Durham County Council, which last year had to make £14m of cuts in what was described as "the toughest ever" budget round.

Council leader Albert Nugent said the authority was delighted to be receiving the windfall.

He said: "We have yet to decide how we will spend the dividend. That will be something for members to consider in due course."

Sunderland City Council will receive £14.4m from the deal, with Newcastle getting just under £13.7m, Northumberland £12m, Gateshead £10.4m, North Tyneside £9.6m and South Tyneside £8m.