Exeter Airport saw passenger numbers increase by 45% in 2004

Senior council executives say the value has gone up in the last 12 months because of a significant increase in passenger traffic.

There have also been announcements of multi-million pound improvements.

The top bidder in the recent proposed sale of the airport withdrew from the process in October.

Higher return

The value of the original sale of the airport was not revealed by the council but was said by some experts to be worth up to £50m.

That sale fell through in October when the winning South West Airports Consortium (SWAC) withdrew in the face of an extended investigation of the deal by the Competition Commission.

SWAC also operates Bristol Airport and there were accusations of a conflict of interest.

The airport saw the biggest rise in number of aircraft handled by a regional airport in 2004, with passenger numbers up 45%.

Devon County Council has decided to try to sell the site again and the internal report suggests there is a window of opportunity early next year, before Leeds-Bradford airport also comes on the market.

The two sale options for Exeter are to go back to the original under-bidders or re-tender on the open market.

But since the last bids passenger traffic has increased and the council has committed to £4.2 m of investment in baggage handling, new buildings and fuel storage.

The report also suggests a higher return could result from a separate sale of the nearby 107-acre Skypark Business Park site, which was originally being sold as part of the airport.

The Council Executive meeting will discuss the report next Tuesday, although final decisions are not expected until the New Year