Low-cost VLM in high-flying form

BELGIUM-based airline VLM has franked its credentials as one of Britain's fastest-growing carriers by reporting 28% growth in 2004.

The carrier, the biggest airline operating out of London City Airport, handled 553,000 passengers last year and is set to report its eighth consecutive year of profits - proving, it says, businessonly, full-service airlines with low costs can work.

Although Antwerpbased, VLM does 75% of its business out of City Airport with its 14 50-seater Fokkers. It flies from Docklands to the financial centres of Brussels, Luxembourg and Jersey as well as servicing the Anglo-Dutch business market to and from Rotterdam and the Antwerp diamond market.

It also said its UK domestic routes to Manchester and Liverpool in direct competition with Sir Richard Branson's Virgin Trains have had a cracking year.

Passengers numbers on the Manchester route grew 37% in the year while the first year of Liverpool John Lennon services accounted for more than 12% of all VLM passengers last year.

London City airport has reported that it handled 1.7m passengers in 2004, 14% more than the previous year.