AN AMBITIOUS £20m redevelopment that will transform the region's second biggest airport is going ahead.

Moves by Peel Airports to begin the redevelopment of Teesside vindicates the decision by local authorities to sell their controlling interest in the hope of attracting more investment.

The five North-East local authorities sold 75 per cent of their shares to Manchester-based Peel for £500,000.

In return for taking control of the airport Peel agreed to a sweeping investment programme.

The five councils - Redcar and Cleveland, Hartlepool, Middlesbrough, Stockton and Darlington - claimed the deal was the only way forward arguing they did not have the cash needed for redevelopment.

Last night it was confirmed that Peel has taken the first steps towards investing the cash by applying for planning permission to create a new access into the airport.

If the plans are passed by Darlington Council, the access from the A67 into the airport would be more direct, instead of winding round to the airports car park as it does at the moment.

The plans include maintaining the roundabout on the A67, but removing the next roundabout just outside the airport. A new roundabout will then be built 25m further into the airport and around 20m to the West, with a direct route straight to the front of the airport.

A Darlington Council spokesman said: "The route at the moment takes you round the houses a little bit, this will be a lot more direct. "The new access, if it is passed, will not be an imposing entrance, but it will be more appropriate for the increase in traffic expected as more people use the airport in the next few years."

The plans submitted to Darlington Council include the new access road, a cycle way and footpath, as well as the reconfiguration of internal access roads, car park and associated works.

Peel Airports is responsible for transforming Liverpool's John Lennon Airport and it is hoped its investment on Teesside will see twice as many passengers using the airport.

As part of its £20m investment the firm has promised to refurbish the main terminal building, construct a new parallel taxiway for aircraft serving a cargo depot, as well as a new £4m runway.

Since Peel Airports came on board, Teesside has announced a lucrative tie-up with budget airline Bmibaby, and is also working with regional development agency One NorthEast to create a new business park on a nearby site, which will have its own access road to the airport.