The airport's chairman said he was "absolutely delighted"

Warwick District Council decided the building at Coventry Airport breached guidelines because it had been created without planning consent.

But John Prescott has ruled that although the council was right to take action, the building can stay.

On Thursday, Thomsonfly announced it was to expand its services at the site.

The airport will now be subject to certain conditions as part of the agreement incuding restrictions on night flights and noise.

'Absolutely delighted'

Sound insulation grant schemes will be available for local residents affected by aircraft noise.

However, an inquiry into plans to build another new terminal - capable of handling up to two million passengers per year - is ongoing and not expected to end until May.

Airport owners TUI recently sold the site to CAFCO, an American firm. The firm intends to continue with the planned development.

Bill Savage, chairman of the airport, said he was "absolutely delighted" with the decision.

Airport protesters have campaigned about the new terminal saying it raises issues of noise and pollution.