BUDGET airline flyglobespan has denied it is to pull out of Durham Tees Valley Airport and move operations to Newcastle International Airport.

The airline, which created 60 jobs when it began services from Durham Tees Valley in March last year, was said to be considering a move to the larger airport in an attempt to secure a more profitable customer base.

But last night it emphatically denied the reports and said it was “planning ahead”

for next year.

Last week, the firm’s chief executive Rick Green had talks at Durham Tees Valley and, according to a spokesman, was discussing “various aspects of the airline’s programme, including Durham Tees Valley”.

The spokesman said: “We have yet to finalise our full programme for next summer and are in talks at a senior level with Durham Tees Valley Airport as we look to plan ahead for 2009. When our final plans are agreed, we will make a full announcement.

“Flyglobespan is not planning a move to Newcastle.”

Flyglobespan is a major carrier at Durham Tees Valley and operates flights to Tenerife, Faro, Malaga, Alicante, Palma and Jersey. Earlier this year, it highlighted its “strong sales”

from the North-East with winter sun destinations popular.

A number of UK airlines have been reviewing their operations, and cutting back in some instances, due to the current tough economic climate and rising fuel costs.

In a statement, Durham Tees Valley Airport said: “We have established a strong and constructive relationship with flyglobespan and the public have responded very positively to the flight programme, which has targeted many of the holiday destinations most popular with North-Easterners.

“As flyglobespan has explained, we are in discussions on future plans-including the programme for next summer.”

Flyglobespan began life in 2002 with its first flight from Edinburgh to Nice. It now operates flights to 23 destinations worldwide, employing 1,300 staff.

● Competition chiefs are expected to pave the way for a major shake-up of the ownership of some of the UK’s biggest airports.

In a report today, the Competition Commission is likely to recommend a break up of airport operator BAA’s “monopoly”

of south east England airports – Heathrow, Gatwick and Stansted.