BUDGET airline easyJet hopes to carry a million holidaymakers a year from 2004 at its new North-East base, it was announced yesterday.

The low-cost carrier will start services from Newcastle to three European cities next April. The destinations will be revealed in December.

The announcement is a major coup for the region in the battle to win more passengers from Manchester and London airports.

And last night, officials at Teesside Airport revealed they were also in negotiations with another cut price airline interested in running flights from the region.

Earlier this year, easyJet took over Go which already operates a service to London Stansted from Newcastle.

EasyJet director Ed Winter, who flew into Newcastle to make the announcement, said: "Our experience in Newcastle with Go shows that there is massive demand for low fares. We are going to bring thousands of low fares on a range of direct flights."

Two aircraft will be based at the airport next summer, rising to four aircraft in 2004.

About 100 jobs are likely to be created.

Newcastle Airport chief executive John Parkin said: "We are delighted to have won this against strong competition from many other airports."

Teesside Airport spokes-man John Waiting said: "This can only be good news for the North-East which is severely underserved by low-cost airlines. We are in discussion with another low-cost carrier and travellers will benefit from increases from both airports in the future."