Airport fails to secure Government funding

It looks like Durham Tees Valley Airport has lost its bid for nearly £6 million of government regeneration money towards a huge freight operation.

The airport owners, Peel Holdings, applied for Regional Growth Fund money towards the project, it says, could create 1500 jobs.

Peel plans to develop 150 acres of land to the south of the runway to attract aviation and logistics businesses and has described the proposals as 'a significant project for the whole area' which will take around ten years to complete.

The winning bids for the latest round of the Regional Growth Fund are due to be made tomorrow and ITV News understands the airport is not on the list.

Peel Holdings says it is still awaiting for official news from the Department for Business, Innovation and Skills and can't comment any further at the moment.

The North East Chamber of Trade and Local Enterprise Partnership (LEP), Tees Valley Unlimited, have also declined to comment ahead of an official announcement.

A board meeting is due to be held tomorrow and will be attended by a number of organisations, including local councils.

If the airport misses out on the funding, it will be another blow for the site, which has seen passenger numbers fall by two thirds in recent years.

Peel Holdings became a majority share-holder in the airport earlier this year and said it was committed to the airport.

In May, it started a new marketing campaign to try to encourage passengers to return.