A GLOBAL cargo airline has dealt a financial blow to Manston by pulling out just before the airport celebrates the launch of scheduled passenger services.

MK Airlines has switched its operations to Ostend, Belgium, after refusing to pay what it claims would have been a 90 per cent hike in charges by PlaneStation, owners of Kent International Airport.

The shock decision by the airport's biggest freight customer could slash more than a million pounds from airport revenue and pose a threat to jobs.

It comes just a week before EUjet launches its low-cost passenger services on September 1 and will inevitably cast a shadow over an historic day in Kent's aviation history.

MK Airlines, set up by South African entrepreneur Mike Kruger 14 years ago, is a worldwide operation with £250m turnover and 400 employees.

Since 1999, its Boeing 747 and Douglas DC8 aircraft have been regular visitors to Manston, carrying fresh fruit, vegetables and flowers for British supermarkets, mainly from South Africa, Zambia, Uganda and Kenya. MK's operations at Manston have accounted for around 40 per cent of airline turnover.

MK spokesman Steve Anderson said the airline had a long-term agreement with the airport but PlaneStation wanted to change the pricing structure for landing charges, handling, fuel and other services.

A 90 per cent increase would cost the airline more than half a million pounds a year and it was not prepared to pay it.

Ostend was offering the same facilities for what MK has been paying at Manston. MK would save money even taking the higher costs of trucking goods to Britain across the Channel into account.

Mr Anderson said MK's dispute was not with the airport but the owners PlaneStation. "The airport management has been terrific throughout and I have no problem with the airport," he said. "It's their owners PlaneStation.

"They are just not prepared to listen and we've sadly had to make the decision to go. We don't want to. We very much enjoy operating at Manston. The people are great, it works for us, but I'm afraid we have our customers we have to look after and cost counts."

Mr Anderson said that MK would consider returning to KIA if PlaneStation changed its charging policy.

An airport spokesman said it was "surprised and disappointed" by MK's decision.

KIA was investing heavily in developing its cargo business to provide high quality and extremely cost-effective facilities for operators.

A £2.5m border inspection post facility would be opening shortly and had attracted considerable interest from operators.

"The cost-effective services provided by Kent International have allowed a number of cargo operators, including MK, to grow and develop their business," the spokesman said. "The Airport now looks forward to creating a centre of excellence for air cargo handling."