The Leicestershire based airline BMI British Midland is reporting an increase of more than a third in passenger numbers.

But its no frills airline BMI Baby is also reporting successes.

More than 2 million people travelled with BMI British Midland between October and December last year.

The figure is an increase of 37% on the same period for 2001.

Fastest growing

The company says much of the growth is from existing services rather than new routes and shows short haul flights are seen as a practical alternative to road and rail travel.

It says the figures reflect the growing public demand for a full service airline in the face of stiff competition from low-cost carriers.

BMI baby is reporting that a record 130,000 passengers travelled in December and is now claiming to be the fastest growing of the low cost airlines.

The growing popularity of BMI Midland and air traffic generally is behind the plans for East Midlands airport to expand.