North-East holidaymakers could benefit from more cut- price international flights from a local airport.

Teesside International Airport is being looked at by no-frills airline Loco Flights, which has already announced plans to start flights to Malaga and Tenerife from Newcastle Airport in the New Year.

Flights from Newcastle are added to those already being operated from Manchester, and a spokesman for the company said Teesside could be next in line as the operation looks to expand further.

He said: "We are keeping all our options open at the moment, but will look at the potential capacity of Teesside and how the market is reacting to the current problems being experienced by the aviation industry following the terrorist attacks on the US.

"There has to be a good chance of running flights from Teesside, if the demand is proven to be there."

Loco offers cheap seat-only deals. It can keep the price down because it doesn't offer in-flight meals or movies, and is not tied into a package holiday deal.

The spokesman said: "The flights are particularly aimed at people with holiday homes abroad, such as timeshare apartments, and we can keep the price down because they are not part of a travel agent's package holiday deal."

Teesside Airport's managing director, Hugh Lang, welcomed the news that Loco could be considering Teesside Airport for future expansion.

He said: "Obviously we are always happy to explore any opportunities for increasing our holiday flight programme from Teesside International. In fact, we are optimistic that, despite the pressures being felt throughout the air travel industry, the market in the North-East will remain buoyant in the year ahead.

"If Loco Flights are interested in developing opportunities at Teesside, I am sure they will find that there is tremendous potential for continuing growth at an airport where we are committed to maintaining high quality services to all our customers."

Loco promises to offer flights at up to 30 per cent cheaper than other charter airlines, when it starts flights from Newcastle on January 2.

Typical fares on the Newcastle services will be £149 for a seven-day return to Malaga, while Tenerife fares start at £169.

Seats are being offered for sale through independent retail agents and on Loco's new website, which will be launched in January.

Chris Sanders, business development director at Newcastle Airport, said: "We're pleased that Loco has selected Newcastle Airport to introduce this new concept aimed at the charter holiday market.

"Tenerife and Malaga are both popular destinations from the North-East and this low-cost option on seat-only will add choice and flexibility for holidaymakers next summer, alongside traditional package holiday operators."