London City Airport set to up flights by 50 pct

LONDON (Reuters) - London City Airport is to be allowed to increase its flights by 50 percent by the end of next year, a move likely to boost development in east London ahead of the 2012 Olympic Games.

The Borough of Newham said it has agreed to raise the number of flights in and out of the airport, located just two miles from the Olympic site, to a maximum of 120,000 per year from the current 80,000.

The increase is expected to boost the number of passengers per year to 3.9 million from 3.3 million, said an airport spokeswoman.

She said the expansion will create an estimated 957 new jobs but will not require additional construction.

Employers' group the CBI said the expansion would be vital to the regeneration of east London and to the Olympics.

London City Airport, designed primarily to appeal to business travellers, has 10 airlines serving over 30 destinations across the UK and Europe.

(Reporting by Humeyra Pamuk, Editing by Steve Addison)