Britain's Luton airport, north of London, said yesterday it expects to privatise the business in the next few months as it seeks to fund a major expansion plan to cope with Europe's growing low-cost air travel market. Luton Borough Council is offering prospective bidders a long-term operating franchise of around 30 years in return for funding the £170 million sterling to expand and modernise the airport.

The expansion plan is already in place and includes a new terminal, extra aircraft stands and car parks.

Requests for proposals are due to go out to 14 prospective bidders tomorrow, from 35 who returned an initial questionnaire, with a view to asking about five companies to bid in early November.