About £70m is being spent on Newcastle International Airport over the next ten years, generating thousands of jobs. Deputy Business Editor Kate Bowman talks to finance director Lars Friis.

SINCE Lars Friis left his home in Copenhagen to work at Newcastle International Airport in 2002, he has seen passenger numbers double to about six million a year.

He believes it is not only the presence of carriers such as easyJet that is drawing the travellers, but also the services that Newcastle International can offer.

Lars said: "Traditionally, an airport is viewed as just a facility, like a building or a bus stop, but the main difference is that we think of it as a business and, as a business, we want to see it grow in the future."

Lars saw profits jump from £1.2m in his first year to £7.2m in 2003 and £11.9m last year.

Investment in new technology, cost-cutting measures and restructuring have led to the airport running more efficiently which, he says, has led to an improved service for customers.

"One of the reasons customers choose to fly from a certain airport is convenience, but here we want to provide them with the best service so that they have a good experience, both when they fly off and come back. That way, they will want to come back to use the airport again.

"We are always striving to set best practise within the airport industry, but we know we are not there yet. We haven't got the most efficient passenger process, but we are working constantly to better our facilities."

Improvements recently have included transferring the shops and cafes from "landside" to "airside", which means that customers can check-in and pass through security into the departure lounge before relaxing with a cup of coffee.

Lars concedes that, despite the name, Newcastle International is unlikely to become one of the UK's major airports, rivalling Manchester or Gatwick. That said, there are plenty of plans for growth.

"There are always plans to add more routes and we are constantly exploring where we can go next. However, securing a new destination is something that can take a long time and is a lot of hard work. It took about two years to arrange our daily flights to New York," he said.

American Airlines announced in July that it would operate a 188-seat daily scheduled service from Newcastle to New York's John F Kennedy Airport from May - the first non-stop scheduled service between the two cities.

A rolling investment programme is under way, with between £60m and £70m being invested each decade. During the past five years, major developments have included a terminal extension, known as Module One, and retail facilities, which opened last year. It recently announced that an air traffic control tower was being built.

A Ramada hotel is also planned for the spring of 2007, creating about 120 jobs.

Plans are being considered for a large development on the south side of the airport, which will include aircraft maintenance and freight facilities and a business park that will be home to thousands of workers.

Despite a 200-acre business park being built only a few miles down the road at Newcastle Great Park, Lars believes the two sites will not be in competition.

He said: "I think airports get to a certain size where they can start to look at what they can do to gain more income and revenue. We are at that stage now and the sort of businesses that the airport would attract would be different to those looking to Newcastle Great Park."

The business park at Newcastle International is similar in principle to the development planned at Durham Tees Valley Airport, which is awaiting a decision on a planning application for a £56m extension and refurbishment of the site, to include a business park, aircraft stands, hotel, restaurant, car parks and landscaping.

Mark Clarkson, business development manager at Durham Tees Valley, says improving facilities and modernising the terminal building is vital to the sustainability of the business.

He said: "The departure airport is regarded by the majority of travellers as the starting point of their holiday or business trip and it is therefore increasingly important to provide an experience that better reflects the region and offers more to the people who use it."