MANAGERS at the North-East's largest airport were yesterday celebrating what they described as the beginning of a new era with the announcement of a £200m partnership deal with their counterparts in Copenhagen.

The seven local authorities with shares in Newcastle Airport have sold 49 per cent of their interest to the Danish airport and agreed a 15-year technical services agreement with them.

Agreed unanimously by the seven councils, they will receive a total of £194.95m from the Public Private Partnership.

The Danish connection means the airport should increase its range of schedule and charter flights, and help regenerate the economy of the North-East.

Copenhagen Airports, which handles more than 18m passengers a year, is one of Europe's largest airport companies and recently won awards for the Best Airport in the World and Best European Airport.

Councillor Rita Stringfellow, chairman of Newcastle Airport's board, made the announcement at the airport yesterday.

She said: "All of the shareholder councils are united in their view that Copenhagen Airports represents the right strategic fit for Newcastle Airport.

"This decision reflects a confidence that such a partnership will give Newcastle Airport the best opportunity possible to prosper and thrive, which will have far-reaching benefits for the whole of the region."

Vagn Anderson, chairman of Copenhagen Airports, said he hoped the deal would speed up the economic regeneration of the North-East.

He said: "Our vision for Newcastle Airport is simple but exciting. We want to build on its successful development over the last few years and create a long term partnership with business partners, the local communities, management and employees."

The local authorities involved are Durham County Council, Sunderland City council, Gateshead Council, South Tyneside Council, Newcastle City Council, North Tyneside Council and Northumberland County Council.