THOUSANDS of North-East travellers stand to benefit from cheaper flights, after the region's first bargain basement airline announced a £10 fare to London.

Cut price airline Go announced yesterday that it would begin flights between Newcastle International Airport and London, Stansted.

The news came as a much- needed boost for the region, following Gill Air's collapse just days after the US terror attacks.

Go services will start with two flights a day to the capital. And to launch the service, it is offering the £10 one-way fare, which will include taxes.

Chief executive Barbara Cassani said: "When we saw the cost of getting between the North-East and London, we were shocked.

"Whether they're travelling with a traditional airline or by train, people are paying too much."

Year-round fares will start from £30 return, including taxes. The maximum charge - a fully flexible fare, which allows a day return, changes, cancellations and transfers - is £130.

Ms Cassani pledged Go's flights would remain cheaper than the equivalent train fare.

Go sees GNER as its biggest competitor, rather than National Express coach services.

Ms Cassani said that the aftermath of the US attack had seen traditional airlines cutting flights and reducing workforces.

But the low-cost airline sector was one area which was bucking this trend.

Ms Cassani said: "Low-cost airlines like Go have been encouraging more people to fly by offering even lower fares than before. This has helped booking numbers quickly return to normal levels."

In addition, in recognition that some passengers have been left stranded by the recent withdrawal of Gill Airways' services, Go is offering to honour Gill's tickets free of charge.

Go is an independent airline bought by its management from British Airways for £100m in June.

Its lowest fares are available online at www.go-fly.com. Flights can also be booked through travel agents or by phone on 0870 6076543. There is a £10 supplement for phone bookings.