£7m hangar for new air search and rescue service at Newquay

Bristow will take over the air search and rescue service in 2015

A £7m hangar will be built at Newquay Airport in Cornwall by the firm behind the country's new air search and rescue service (SAR).

Bristow Helicopters will also be paying for landing fees and fuel when its begins operating from there.

It means Cornwall Council's £3m subsidy to the airport will be reduced by about £100,000.

The Bristow Group won the 10-year contract to run the country's air search and rescue service from 2015.

The £1.6bn deal ends 70 years of search and rescue from the RAF and Royal Navy.

Bristow is also buying two Cornwall-based helicopters at £20m each.

The subsidy from Cornwall Council, which helps to support the airport's operating costs, has been "steadily decreasing", according to Adam Paynter, the new Cornwall Council portfolio holder for partnerships.

The service in Cornwall is currently run by RNAS Culdrose in Helston.

Bristow will replace ageing RAF and Royal Navy Sea King helicopters with modern Sikorsky S-92s and AgustaWestland 189s.