JUST 14,000 passengers flew from Durham Tees Valley Airport during its first year - but that modest figure was probably a blessing in disguise.

The former RAF base - where former Tory Cabinet Minister Norman Tebbit cut his teeth as a pilot during the 1950s - was handed over to a consortium of local authorities on April 17, 1964. Teesside Airport began civilian operations the following day.

Although the airfield was in excellent condition - having being lengthened and strengthened to operate RAF Lightning jets - the airport facilities were about what could be expected of a military airbase.

The first passengers had to be processed through a ramshackle collection of Nissen huts near the air traffic control tower before they could board a plane to the only destination - Manchester, a mere 110 miles away. A purpose-built terminal wasn't completed until 1966.

Things have improved greatly since those pioneering days.

The airport has changed hands from council control to being run by a private operator, the Teesside name has been replaced by Durham Tees Valley Airport and scores of new destinations have been added.

In 2006, the airport will handle more than one million passengers and a huge amount of freight. With more flight destinations due to be added next year, the future looks bright.

However, without a major programme of investment and expansion, officials fear that the airport faces stagnation.

If no further development takes place, the existing terminal capacity of 1.2 million will be reached next year. According to a study commissioned by Darlington and Stockton borough councils, this would have a major impact on passenger services and the wider economic prosperity of the region.

The report says that if maximum capacity is reached "services would be constrained to all users and businesses and the image of the airport would suffer. Indeed, the airport would not fulfil its recognised role as an economic driver in the region and may decline in absolute terms compared to the growth of other regional airports".

This would not sit well with the Government's strategy for airport growth - which identifies the economic, social and cultural benefits of increased air travel.

As the report says: "The 'no development' scenario is not an acceptable option in the context of the Government White Paper since significant local and regional benefits will flow from the development with relatively limited environmental impact."

Peel Airports - the Manchester-based group which took over Durham Tees Valley when the local authorities sold their controlling interest three years ago - has no intention of allowing that to happen.

Key to its plan is an extension and refurbishment of the passenger terminal that will double the amount of floorspace and give Durham Tees Valley the capacity to handle three million travellers.

The extension will house a new departure lounge, check-in concourse and an outbound baggage system.

A report by architects Leach Rhodes Walker LLP says: "This will allow these functions to be removed from the existing terminal building to free up areas for associated uses such as expansion/improvement of arrivals areas, security control, landside lounges and retail areas."

To cope with the expected increase in passengers, the number of check-in desks will grow from the existing 18 to 30, including provision for wheelchair-bound travellers and induction loops for the hard of hearing.

New shops and a restaurant also form part of the proposed upgrade.

Four gate bridges will connect the first floor of the building directly to aircraft stands. This will allow passengers to embark regardless of the weather.

The existing terminal will undergo the biggest refurbishment since it was built in 1966.

Large areas of the roof will be overlaid with a new waterproof membrane, and the buildings will be linked by a new corridor.

To go with this, the airport's car parking facilities will be upgraded with space created for an extra 4,500 vehicles.

New bus stops are planned adjacent to the terminal and a coach park would be created to the east.

The aircraft taxiway and apron areas will also be upgraded to accommodate more planes.

A new apron area will also be required to service the cargo/maintenance village planned for the north-eastern end of the runway.

Peel hopes to extend the airport's attractiveness by adding a business park and a 100-bed hotel (with a pub/ restaurant) prominently located near to the new roundabout along the airport access road.

The three-storey hotel will share the site with the separate pub/restaurant, which will be open to non-patrons.

Other additions envisaged by the bold plan include car hire facilities with provision for up to 150 vehicles, upgraded security, and improved infrastructure, including foul and surface water disposal - the latter possibly connecting to a new treatment works to the west of the site in Middleton One Row.

Peel believes such an ambitious strategy will unlock pent-up demand for flights across the Tees Valley.

According to Government estimates, demand for air travel is set to more than treble by 2030.

Whether that demand is met by Durham Tees Valley Airport - or another regional airport - will be influenced by improvements to services and facilities.

It is a long time since the romance of flying made passengers put up with a Nissen hut as they waited patiently to depart.