SMALLER airports could be be forced out of business by a government shake-up that will pile on extra operating costs, ministers are warned today.

The alert, in a report by a committee of MPs, comes as the fight to save struggling Durham Tees Valley Airport - put up for sale last month - goes on.

Peel Airports acted as it was revealed the rolling 12-month figure for passenger numbers had dropped by another 7,000 to 192,000, its lowest figure in more than 35 years.

Now the all-party transport select committee has highlighted the potential threat from the draft Civil Aviation Bill, which willtransfer new security responsibilities - and extra public information requirements - to airports.

During its inquiry, the Airport Operators Association said the shift would add £200,000 to the annual bill for a large airport and threaten the "viability of regional airports".

Robert Siddall, the organisation's policy director, told MPs: "We have seen a couple of them close and there is no doubt that they are up against it."

In its conclusions, the committee agreed that reform of the way that airports were regulated was needed, provided that "changes deliver real benefits for passengers".

But Louise Ellman, its Labour chairwoman, said: "Reforms must not push up costs for the aviation industry, particularly for the smaller regional airports, which are finding the present economic conditions challenging."

That message was echoed by Julian Sturdy, the Conservative MP for York Outer, who said: "Outside the South-East, it is becoming harder and harder for certain regional airports to compete.

"With the new Bill and further regulations, are we ultimately getting to the stage where more regional airports will close because of the regulations that are coming down the line?"

The Bill will transfer the £5m annual cost for airport security from the department for transport (Dft) to airports and, ultimately, to air passengers.

Mrs Ellman also questioned the wisdom of the Dft retaining responsibility for security policy, while operational delivery passed to the Civilian Aviation Authority (CAA) - suggesting it might "jeopardise security standards".