KENT County Council is pumping £100,000 into a no-frills airline that will launch 21 scheduled services from Manston later this year.

The council says the stake is justified because the decision by Ireland-based EUjet will boost Thanet's economy and create hundreds of jobs.

Cllr Alex King, KCC's Cabinet member for regeneration, said the money would not come from council taxpayers but a special fund created from income from Kings Hill, a business and housing development on KCC-owned land near West Malling.

Cllr King said: "We decided it was absolutely right to demonstrate our support but also I'm in the business of giving some of the county council's discretionary money in ways that will earn us a return as well. I'm very confident that these guys will deliver."

The move by EUjet to launch scheduled services, announced by its chief executive P J McGoldrick in County Hall, Maidstone, has been warmly welcomed by the private and public sectors.

Thanet council leader Sandy Ezekiel said: "This is exciting news and I am sure we will now see more airlines coming to Kent International. I am particularly glad to see that new jobs are going to local people."

Cllr King hailed EUjet's decision as one of the most important developments in Kent, saying Kent International Airport was an under-used asset that could now be used to the full. It would bring inward investment to the area and create jobs.

He added: "It's a step change for Manston and I believe it will trigger a lot of other things. It's about confidence, pride, commitment. I believe the timing is absolutely right. It genuinely makes us the 'Go To' county."

EUjet employs 130 people but Mr McGoldrick said 150 more staff would be needed as operations grew.

"This is a very exciting development for EUjet," he said. "The launch of our new low cost service will give consumers in the area access to a range of business and leisure destinations at low and very competitively priced fares."

EUjet, based in Shannon, was set up as an aircraft leasing operation but is now expanding into scheduled services.

The airline now wants to use Kent International Airport as a hub for services to some 27 destinations.

They include Manchester, Edinburgh, Dublin, Amsterdam, Glasgow, Madrid, Shannon, Copenhagen, Milan, Gerona, Nice, Prague, Palma, Malaga, Jersey, Murcia, Faro, Geneva, Zurich, Salzburg, Turin and Toulouse.

It estimates that as many as 500,000 passengers will use its services in the first year of operation starting in September and October.

PlaneStation, the owner of KIA, is investing £2m in the new venture. Martin May, the chief executive who recently replaced Oliver Iny, sparking protests from a number of angry shareholders, said the company's vision was to generate shareholder value.

"I think this investment will generate significant value for our shareholders, significant value at the airport and for the community," he said. "I am confident this will be tremendously successful."

He said PlaneStation was committed to KIA and planned to invest more than £6m in the immediate future.

KM-fm's Liz Leonard has this report...