The aim is to increase passenger numbers to one million a year

The money from Objective One, which channels EU aid to the poorest areas of Europe, will allow airport owners Cornwall County Council to borrow �10m.

That will be spent improving facilities when the RAF leaves the adjacent St Mawgan base in 2008.

The council is aiming to double the number of passengers at the airport and make it profitable.

The airport, which is set to top 400,000 passengers this year, costs the council about �1m a year to run.

Growth 'to continue'

The council is negotiating with the MoD to buy the site when RAF operations cease in November.

The airport also won �8m last year from the South West Regional Development Agency.

Aviation analyst Chris Yates of Jane's Transport said he was confident about the airport's future.

He said: "There is and there will always be a need, particularly from areas such as Cornwall, to fly because that is the simplest, easiest and quickest way to get from point A to point B.

"So growth will continue to places like Newquay Airport."