A SEVEN figure loan deal to lure airlines to use Durham Tees Valley Airport has been given the go-ahead.

The £1m deal sweetener, known as the “Air Connectivity Facility”, was put together by the Tees Valley Combined Authority (TVCA) to attract bids from airlines in return for closer ties with the airport.

Members gave the plan their unanimous backing at a special meeting held behind closed doors on Monday May 14.

Council leaders have stressed the importance of the airport’s ties with European hubs like Schipol Airport, near Amsterdam, to secure its future.

After the meeting, Darlington Council leader Cllr Bill Dixon was pleased the idea had come to fruition.

He said: “Whatever the outcome of discussions of ownership of the airport, we will be able to draw down on the fund with KLM all being well.

“This will give us a facility, and I think it probably will do, to appoint someone on a fixed term contract to do some route development for us.

“There will be a budget there to do whatever is needed to bring flights in. Be they tourist or domestic flights, there is a need for them.

“It’s a piece of business which needs to be done wherever we land.”

The airport is majority owned by the Peel Group with local councils owning a small stake each.

Metro mayor Ben Houchen signalled efforts to bring the airport back into public ownership had edged nearer last week with non-disclosure agreements signed with both Peel and an as yet unnamed airline operator.

However, the mayor’s office has said this new £1m deal will not be open to Peel and was separate to the ongoing discussions on any potential handover.

It is planned the facility fund will be financed from the authority’s budget with money only spent on successful bids from airlines.

Priority would be given to flight operators from European hub airports with the fund parcelled out over three years.