LOW fares airline bmibaby plans to establish a third UK regional base in 2003.

And the North-East's two airports, Teesside and Newcastle have not ruled themselves out of the running.

Bmibaby has only been operational since the early part of this year, but has already experienced unparalleled growth at its East Midlands Airport base and is well ahead on bookings for its second base at Cardiff where services commence at the end of October.

Bmibaby's parent, Bmi British Midland already operates three services a day to Heathrow from Teesside Airport.

Tony Davis, bmibaby managing director, said: "We can confirm that bmibaby is actively looking to set up a third UK base next year.

"A number of airports have been invited to tender and we shall soon start the process to determine where the third bmibaby base should be located."

He added: "The exceptional start that we have experienced at East Midlands and the positive reaction we are getting with bookings from our second base in Cardiff, gives us the confidence to believe that further potential exists for bmibaby.

"Bmibaby has become a considerable force in the low fares sector and I am convinced that we will continue to have a major impact on the growth and development of UK air travel, both now and in the future."

Teesside International's commercial manager Richard Whitehouse said: "We are aware of Bmi British Midland's plans to extend the number of regional bases it operates.

"The airline is already one of our customers, operating three flights a day to London Heathrow, and we are in constant dialogue with them about their future plans."

A spokesperson for Newcastle Airport refused to say if the site was one of those being asked to tender for the new business.

But she added: "The airport continues to seek to develop existing and future services of all types from Newcastle."