Scottish budget carrier Flyglobespan has axed its operations from Durham Tees Valley
Airport, citing poor market conditions.
Despite lengthy negotiations with operator Peel Airports Group, the airline says it could not find a way to continue its flights from the northern UK airport which it previously linked with Malaga, Alicante and Tenerife.
A spokesman for Flyglobespan adds: "We have been looking at different ways of deploying our aircraft to maximise our products in these challenging economic conditions. Unfortunately that means we will not be flying from Durham Tees Valley Airport in 2009."
Flyglobespan has been building up its operations at the airport over the last two years. Although the airline's spokesman does not rule out operations from the airport in future, he says: "In today's economic climate, we have to ensure our assets are deployed in the most viable manner."
A Peel Airports Group spokesman says the airport is "naturally disappointed" by the decision, especially as Flyglobespan's flights have been "very positively" received by passengers.
He adds: "It is clearly a difficult period for the airline industry as a whole and, against the general economic situation, it is inevitable that some airlines may feel the need to restructure their operations."
Peel Airports Group says it is in talks with "a number of parties" over new services, insisting that development prospects "remain bright" despite the poor economic climate.