OWNERS of beleaguered Durham Tees Valley Airport are reportedly giving guarantees for its long-term future as they ask local authorities for permission for a pension switch.

The Northern Echo understands the local authorities will all approve the plan to scrap worker's local government pensions and replace them with a different scheme after Peel Airports guaranteed the airport would stay open long-term.

It has also been shortlisted in a bid for government funding to start a daily service to and from Belfast. It will find out if it has been successful by the end of the year. It currently runs just two routes - to Amsterdam and Aberdeen, which are seen as crucial business links.

It emerged earlier this week that Peel wants to take staff off the final salary pension scheme due to a £6.5m deficit and had been asking local authorities for permission to do it.

In a statement released today (Wednesday, September 16) it said: "The final salary pension scheme represents a significant cost and therefore has to be considered within the overall strategy for the airport and the ongoing drive to reduce losses and bring the airport back to a sustainable position."

Peel said it had been suggested that, should the airport close after the pension switch, the £6.5m deficit would be transferred to the local authority - an accusation which it emphatically denied.

Its statement said: "We have received clear guidance from a UK leading professional services firm that this is not the case.

"If the (pension) proposal is implemented, it is very likely that the long term funding position of the restructured scheme will result in a favourable position for the local authorities."

Peel said it was hoping to build a "sustainable aviation opportunity" at Durham Tees Valley but was not changing pensions lightly.

Other plans to develop the airport include a £5m link road, aviation business park, and housing.

Suzanne Reid, of trade union GMB, warned unions would be fighting against Peel's "immoral" actions.

"In the past few years GMB members have suffered numerous reviews cutting and slashing their pay and conditions of employment all in a bid to save the airport from closure," she said.

"Once again it seems loyal committed staff are going to be held to ransom; their pensions or the airport staying open - this is unacceptable."