More than 100 jobs will be created when budget airline easyJet sets up a regional base in Newcastle.

A network of routes from Newcastle airport, most likely to mainland Europe, will be unveiled in December.

Two easyJet aircraft will initially be based on Tyneside, rising to four in 2004.

BA's former low-cost brand Go, now owned by easyJet, already runs a regular service to Newcastle from London Stansted.

We are going to bring thousands of low fares on a range of direct flights

Ed Winter, easyJet

The deal with easyJet is Newcastle Airport's biggest ever.

Newcastle Airport will be easyJet's fourth regional base in the UK.

Airport chief executive John Parkin said: "This is fantastic news not only for the Airport but for business and tourism throughout the region.

"It provides access to attractive European destinations at low fares for everyone in the North East, as well as encouraging visitors from outside our region to travel to and from Newcastle.

Leisure trips

"We are delighted to have won this business against strong competition from many other airports in the UK and Europe."

Mike Collier, chief executive of regeneration agency, ONE North East, said: "This exciting development will also help us achieve the aims of our regional image strategy as we promote the many benefits and attractions of our region both at home and overseas."

It is thought the airline will carry about 750,000 passengers to and from Newcastle in the first 12 months from the start of the base operation, both on business and leisure trips.

New destinations will be available by the summer of 2003.

The Newcastle-Stansted route operated by Go will not be affected and will continue to operate.

'Low fares'

Go and easyJet merged in August 2002 and the integration process is expected to last 18 months. Eventually the Newcastle-Stansted route will be re-branded as an easyJet operation.

Ed Winter, director of easyJet, says: "There were a number of options for the location of our next base.

"Our experience in Newcastle with Go shows that there is massive demand for low fares, and the current airlines serving the North East are not giving travellers enough choice.

"We are going to bring thousands of low fares on a range of direct flights which, for the first time, makes travelling to Europe cheap, quick and hassle-free.

"The airport management recognised the value easyJet can bring to the region.

"Our track record at other airports around the UK clearly demonstrates the benefits brought by a well established low cost airline, and we're delighted to be bringing Europe's number one to the North East."