THE boss of Ryanair predicted his low-cost airline could one day have as big a presence in the region as its main rival.

Michael O'Leary, who arrived at Newcastle International Airport yesterday to launch a new Ryanair route to Milan Bergamo, said there was room for further expansion in the North-East, but warned progress would be at a steady pace.

"We can envisage having a base as big as easyJet here," he said.

"It is clearly an airport that is very important to us."

His company's main opposition in the budget market, easyJet, already flies to 14 cities from Newcastle and has seen passenger numbers double to 1.38 million in the past year.

Mr O'Leary said: "Our bases in Europe are prime candidates to be linked back to the North-East, whether that is Newcastle or Durham Tees Valley.

"I can see Newcastle-into-France or Spain, if Milan goes well. This is a way of testing how big we think Newcastle can be."

Ryanair already flies from Oslo, Stockholm and Gothenburg, and is hoping to capitalise on the strong market for short breaks in the North-Eastfor Scandinavian visitors. Mr O'Leary revealed Newcastle beat approaches from about 20 other airports for the Milan link, which is due to open in February.

Newcastle's appetite for growth has seen it add one new route every month for the past year-and-a-half.

Milan follows the surprise success of Ryanair's Newcastle to Dublin link. This started out as one flight a day in January last year, but was doubled only seven months later to meet demand.

Mr O'Leary said: "Newcastle to Dublin has been one of our most successful routes in the past two years."

The good news for the region's tourism industry is that 60 per cent of the 250,000 passengers who have travelled on it so far have been Irish people visiting the North-East.

Mr O'Leary said: "We understand the feedback on your pubs and nightclubs has been very good."

He is predicting a similar influx of Italian visitors when the Milan route opens in February, the same time as Ryanair's link from Durham Tees Valley to Rome Ciampino Airport.