The airline has two aircraft based at Durham Tees Valley

Budget airline bmibaby is scrapping eight services from Durham Tees Valley because of a shortage of passengers.

Airport bosses reacted with dismay and questioned bmibaby's route development.

Regeneration agency One NorthEast said the airport can bid for a share of a �4m fund, which could be used to help with start-up costs for any new routes.

Bmibaby's operations will be scaled down from October, a move which is likely to cost 50 jobs.

'Significant impact'

Airport bosses described bmibaby's decision to scrap flights to Alicante, Malaga, Palma, Cork, Newquay, Jersey, Paris and London Gatwick, as "quite inexplicable".

One NorthEast said the Route Development Project was available to help Durham Tees Valley and neighbouring Newcastle airports to attract new routes and carriers to the region.

The fund has already been used to help bring a service from Durham Tees Valley to Brussels.

Tom Warburton, head of regeneration at One NorthEast, said: "Route development has a significant impact on both inward investment and inbound tourism.

"We are working with Newcastle and Durham Tees Valley to build the business case to attract new routes to North East England."

But the agency said European funding rules explicitly prohibited direct subsidies to airports.

Officials from Durham Tees valley were attending a conference in Dubai over the weekend, aimed at attracting new airlines and routes.