A NATIONAL policy that encourages the development of Newcastle and Teesside airports is critical to the North-East's future economic prosperity.

The robust statement has been sent to Government in response to the paper on the future development of air transport in the UK.

It is contained in a joint submission from the North-East Assembly and Association of North-East Councils, backed by One NorthEast the regional development agency.

The paper wants the expansion of air services from Newcastle and Teesside airports to be encouraged to improve the region's competitiveness and access, both to and from, key European markets.

It also highlights the importance of aviation in job creation, inward investment and tourism.

The priority is to develop direct flights from the two airports but a strong case is also made for maintaining access from the North-East into London Heathrow. It does not support any capacity constraints at Heathrow or the South-East and argues that an additional short runway should be built for regional flights.

Additional terminal capacity should also be made to maintain frequency of regional services from the North-East up to and beyond 2030.

If Heathrow is not allowed to expand, the submission wants an alternative hub to be developed in the South-East, and an additional two runways and terminal capacity at Stansted for regional services.

Manchester is not considered a viable alternative to Heathrow for connecting flights.

The submission says Newcastle and Teesside airports are each capable of handling the highest projected passenger and freight volumes to the year 2030.

And it stresses that there is no case for attempting complementary development between Newcastle and Teesside Airports or intervention in the market.

"The consensus within the North-East is to support the growth of both airports, the development of new routes, airlines and airport infrastructure," said Coun Tony Flynn, chairman of the Assembly/ANEC.

"Our priority is to support economic development and regeneration and improve opportunity and accessibility. Air transport is vitally important in helping the North-East tackle these objectives.

"A national policy that encourages the development of Newcastle and Teesside airports is critical to the region's future economic prosperity."

Newspaper

buyout

THE American-owned parent company of the Darlington and Stockton Times and The Northern Echo is seeking to buy a major Scottish newspaper publisher.

The bid by Gannett UK LTD, owners of Newsquest (North East), for the Scottish Media Group's (SMG) newspaper arm has been referred to the Competition Commission.

Gannett UK has applied for consent to acquire SMG's newspapers and related assets under the special newspaper merger regime. The titles include The Herald, Sunday Herald and Evening Times.

Southern

attraction

FAST-expanding North-East leisure group Vimac Leisure is to bring the south seas to North Yorkshire with a £10,000 investment which will re-open a 12th room at its unique Crab Manor Hotel, Asenby, Thirsk.

The investment will be used to redevelop and refurbish the Bora Bora room, designed to replicate the world-famous resort on the south Pacific island.

It will also create five new jobs.

Paul Mackings, managing director, said: "By making this investment, we'll be creating both new jobs for the region and adding to the attractions.