BUDGET airline BMI Baby could create more jobs at East Midlands Airport following expansion.

As reported in the Derby Telegraph yesterday, the airline, based at the Pegasus Business Park, near the Castle Donington airport, announced eight new routes, bringing the total to 24.

BMI Baby will base an extra three aircraft at East Midlands, where it already has five.

It will also increase the frequency of its flights on major routes.

The firm said the expansion plans will mean an extra 350,000 passengers will fly on an additional 2,872 services from East Midlands Airport in 2010. It already employs 275 people, at its head office and the airport.

The company has not confirmed whether any additional jobs will be created as a result of the expansion, but yesterday a spokeswoman said there was "always a possibility".

The new routes are Alghero in Sardinia, Barcelona, Bastia in Corsica, Cork, Dubrovnik in Croatia, Malta, Newquay and Venice.

Last week, low-cost rival Easyjet announced that it was planning to pull out of East Midlands in order to concentrate on "more profitable" airports.

The move, which will affect 120 staff, could see the airline fly its last routes from the airport next year. Easyjet operates 10 routes from East Midlands: Alicante; Barcelona; Faro; Geneva; Ibiza; Malaga; Majorca; Nice; Prague and Venice.

BMI Baby is taking on Barcelona and Venice. It already flies to Majorca, Geneva and Prague for part of the year, but will now operate these routes all year round.

That still leaves some open, but Penny Coates, managing director of East Midlands Airport said she remained confident that many would be filled by other operators.

Before Easyjet's announcement, a new budget operator, Jet2, said it was setting up a base at the Castle Donington airport – a move which could eventually create up to 250 jobs.

Aviation expert John Strickland, of JLS Consulting, said: "East Midlands Airport has gone through big changes in the past couple of weeks.

"As far as the consumer is concerned, it is important that there remains a choice of airline.

"But it is not a bad thing, if it allows airlines to achieve sustainable financial results; this leads to continuity of routes."

Mr Strickland said that BMI Baby's position as a local company may give more reassurance to passengers.

But recent speculation over the future of the BMI Group, which owns BMI Baby, could have an impact.

Industry insiders believe that BMI's parent company, the German carrier Lufthansa, is looking to sell the business.

Airlines including Virgin Atlantic and British Airways are rumoured to be interested.

Mr Strickland said: "BMI Baby is a local company and clearly has a commitment to the airport and the region.

"But there are rumours of a potential sale, which may have an impact on its future."