Newcastle International Airport claims plans to bring in a new aviation tax pose the biggest threat yet to its business.

The government is proposing a per plane tax, rather than per person, which it says is a better way of reflecting the environmental impact of air travel.

The airport has written to ministers stressing the move could hit passenger numbers and future expansion plans.

A Treasury spokesman said the new tax would better take account of the social and economic impacts air travel.

Higher Fares

Graeme Mason, head of planning and corporate affairs at Newcastle airport, said: "Our problem with this is that it is only going to apply to aircraft taking off from the UK, so there is an immediate advantage to overseas carriers and airports."

"But it is also going to hit demand very heavily and the impact on air fares is going to be much greater."

"In a region like the North East, where we have worked very hard over a number of years to bring in new air services, we think that might impact on progress and actually set us back a few years."

Mr Mason said it would be better to base tax on aircraft emissions.

But in a statement, a Treasury spokesman said: "The government consultation on a per plane duty to replace the existing air passenger duty closes today."

"No firm decisions have been made on the design of the duty."

"But it will be more in line with the environmental impacts of flights, including the distance travelled, and take account of any social or economic impacts including market distortions."