Anger as airport's Heathrow link lost; Airline blames big charges in London.

Byline: William Green Political Editor

THE North will lose a crucial air link after flights between Durham Tees Valley Airport and Heathrow were axed.

Business chiefs said the news was "deeply" disturbing in terms of economic links and urged ministers to act after airline bmi blamed fees imposed by Heathrow's operator BAA.

Final services will run on March 28, with 19 staff likely to be affected. Passengers holding bookings for flights after that date will be contacted by bmi.

Managing director Peter Spencer claimed bmi faced inflation-busting charges at Heathrow while higher air passenger duty imposed by the Government had marginalised fliers - leaving them dependent on European airports for international connections.

He said: "BAA, through its tactics, would appear to want to completely cut itself off from the UK regions.

"This is a strategy that will inevitably have a negative impact upon the economic growth and inward investment in those key areas."

The company denied speculation it was freeing up valuable slots at Heathrow for other more profitable routes.

James Ramsbotham, chief executive of the North East Chamber of Commerce, said: "We are deeply disturbed to hear this news. For decades now, flights between Teesside and London have been a mainstay for companies in both areas.

"What is particularly annoying is that demand is still high for the flights, but bmi has reported that surcharges at the London end are making this route unprofitable."

He promised to back the local airport and urged the Government to look at the issue.

The Association of North East Councils said it had raised concerns to the Civil Aviation Authority last year about increases in Heathrow charges and would back efforts to examine options to maintain links to London.

BAA said charges were set by the Civil Aviation Authority, which as regulator determined what a "reasonable" return was for the company.

A spokeswoman said: "Heathrow's charges are among the cheapest in Europe for a major international airport."

Peel Airports, which operates Durham Tees Valley, said the loss of flights reflected major problems facing airlines but said there was still demand for a London link.

Group airports director Hugh Lang stressed the need to make ministers aware of the potential damage to regional generation caused by Heathrow charges and air passenger duty.

A CAA spokesman said charges were set at a maximum level to ensure fairness for users while enabling BAA to improve Heathrow, but said the company did not have to impose the top rates.

BAA, through its tactics, would appear to want to completely cut itself off from the UK regions

CAPTION(S):

GOING SO SOON? A bmi flight at Durham Tees Valley. Right, the NECC's James Ramsbotham.