A private company is to take control of Teesside Airport from local authority shareholders.

Peel Airport's Limited, which already owns Liverpool's John Lennon Airport, is expected to invest about �20m in the Teesside operation.

It is hoped the deal will enable it to better compete with neighbouring Newcastle Airport.

The move, and a soon-to-be completed deal at Doncaster Finningley in Yorkshire, gives Peel control of three significant sites in northern England.

We have a good airport, but we need to develop it Teesside Airport spokesman

Robert Hough, chairman of Peel Airports, said: "Teesside International Airport has seen significant improvements, but in an increasingly competitive market for air services, is now entering an important phase in its development.

"We believe our investment by Peel will provide greater choice to business and leisure passengers.

"With Liverpool in the North West and Doncaster Finningley in Yorkshire, the Peel Group will be able to serve the three key northern regions of England."

'Maximising benefits'

A spokesman for Teesside Airport said: "We started last September to look for a partner to work with us to develop the terminals and the building itself.

"We have a good airport, but we need to develop it."

Peter Nears, Peel's strategic planning director, said: "Airports are widely recognised as drivers of economic growth and therefore maximising the benefits Teesside Airport can bring to the local economy will be a priority.

"We are looking forward to working in partnership with the public sector to progress these developments."

Teesside Airport has been controlled by the area's local authorities since it was founded in 1964.