The South West Regional Development Agency (RDA) is to have the final say in a row over where the region's main airport should be situated.

Arguments were voiced by representatives of both Plymouth and Exeter air operators during a conference held by the Devon and Cornwall Business Council (DCBC).

The DCBC was asking business leaders to decide on the way forward for local air travel before the government releases its White Paper on aviation this year.

The RDA has now said it is going to look afresh at all options and recommend one which must be accepted by all parties.

Exeter Airport: Most passengers are holidaymakers

Tim Jones from the DCBC said the current airports are not attracting investment or enough travellers.

He said: "About two thirds of travellers from the South West go outside the region, to Heathrow and elsewhere, for their travel."

Plymouth Airport owners Sutton Harbour Holdings propose building houses on the sites of both Plymouth and Exeter airports and using the income to fund a new airport east of Plymouth in the South Hams.

However, the boss of Exeter Airport has said there is no need for a new airport and Plymouth should just be shut down.

Nuclear concerns

At the conference, Exeter Airport Managing Director Geoff Myers attacked the South Hams scheme on several fronts.

He said: "We've got problems on rail and the roads and we don't want to wait 10 years for an airport in the South Hams.

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"In the meantime, we just get left further behind. We may get to the point where it's irretrievable."

Mr Myers even said it could pose nuclear safety worries because it might mean planes taking off over Devonport's submarine complex.

But Malcolm Naylor of Sutton Harbour Holdings said: "Approximately 96% of the passengers at Exeter Airport are travelling on leisure and leaving this region.

"We need to look at new services bringing business and leisure passengers into the region."

Now the RDA is to mediate between Plymouth and Exeter airports.

The Exeter and Plymouth lobbies have publicly agreed in principle to be bound by whatever the RDA concludes.

The Agency hopes to reach a conclusion by May.