Former owners Tui UK made the announcement on Thursday. No financial details have been released but the deal is believed to be worth millions.

American company AFCO joined forces with Irish property development company Howards Holdings PLC and the Convergance Group to buy the airport.

CAFCO-C has confirmed it will pursue the airport's development plans.

'Exciting challenges'

A public inquiry for a new permanent terminal capable of handling up to two million passengers a year is due to begin next week.

CAFCO-C's plans for future investment are centred on the new terminal building and other supporting infrastructure.

Alan Robinson, chairman of CAFCO-C, and Mr Stipancic said in a joint statement: "We are fully committed to the planning application being considered and we plan to develop the airport within an environmentally sustainable programme.

"I am sure that the current team will benefit from our vast aviation, infrastructure and property experience and we look forward to the exciting challenges ahead."

The airport operating company West Midlands International Airport Limited (WMIAL) said it will continue to operate as normal.

Leader of Coventry City Council, Ken Taylor, said: "This is good news for Coventry and the region as it shows massive commitment to the city's future."

TUI UK purchased the airport in February 2004.

Managing director Peter Rothwell said: "Today's announcement is great news for all parties.

"It was not in our business plan to purchase an airport, however it was necessary to take ownership in order to be able to ensure successful operation of our low fares flights with Thomsonfly.com.

"We had hoped to find a suitable custodian to grow Coventry Airport into the future, and are delighted that we have now found the right suitor."