Ryanair and Manchester Airport Group have announced they have concluded a ten year growth agreement at London Stansted Airport.

The parties hope the deal will see Ryanair grow its traffic at Stansted by over 50 per cent, from 13.2 million passengers in 2012 to over 20 million passengers per annum in return for a package of lower costs and more efficient facilities at Stansted.

This agreement will account for up to 25 per cent of Ryanair’s five year growth plans to 2019.

Ryanair chief executive Michael O’Leary said: “Ryanair is pleased to have agreed a new ten year growth deal at London Stansted with MAG.

“This agreement, which will create over 7,000 new jobs in Stansted, proves how UK airports can flourish when released from the dead hand of the BAA monopoly.”

Ryanair expects its Stansted traffic in year one of this ten-year deal to grow from 13.2 million to over 14.5 million.

The low-cost carrier plans to increase the number of planes based at the airport to 43, offering 120 routes.

New routes include departures to Bordeaux, Dortmund, Lisbon and Rabat.

MAG chief commercial officer, Ken O’Toole said: “The new long term agreement between Ryanair and MAG at Stansted shows that competition really does work, and it represents great news for both passengers and UK businesses.

“The deal secures a new and exciting era for both Ryanair and Stansted, and we’re delighted to be supporting the airline’s growth over the next ten years.

Today’s announcement, coupled with our £80 million investment in the terminal, confirms that Ryanair shares our confidence, and shows how we are succeeding in transforming Stansted under new ownership.

“Stansted has a really bright future in providing international connectivity for the UK.”