Exeter Airport: In line for expansion

Mr Darling also told MPs that further consultation was needed into proposals for a new airport to the east of Plymouth, in the Sherford Valley.

He made his announcement after months of consultation on a White Paper which details the government's plans for dealing with the expected sharp rise in air travel over the next 30 years.

Demand for air travel in the UK is expected to triple from 180 million passengers a year now, to 500 million in 2030.

Mr Darling, said: "We anticipate the need for more terminal facilities at Bournemouth, as well future development at Exeter and Newquay.

"In Plymouth the options for a new airport to the east of the city need to be explored further by the local and regional authorities."

Plymouth hope

Business leaders had been expecting the airport in the Sherford Valley to be completely ruled out.

Sutton Harbour Holdings, owners of Plymouth City Airport and backers of the Sherford Valley plan, said an extra runway at Stansted Airport in Essex could open the way for expansion at Plymouth.

Managing Director Duncan Godefroy, said: "The government has not taken a view on whether Plymouth needs a new airport, but has said that the option must be considered alongside possible alternatives, including the extension of the runway at Plymouth City Airport.

"We have always believed that the best long term solution to the region's air transport needs would be the creation of a new purpose-built airport at Sherford.