The proposal – from John Whittaker, boss of Peel Holdings – was dismissed as ‘sheer folly’ by Manchester council leader Sir Richard Leese and chief executive Sir Howard Bernstein.

In an open letter, they called the idea ‘breathtaking in its naivety’ and accused Mr Whittaker of letting his business interests in airports ‘cloud’ his judgement.

Manchester council owns 55 per cent of Manchester Airports Group (MAG) – which also includes airports in East Midlands, Humberside and Bournemouth – and, therefore, has the final say.

The other nine Greater Manchester councils own five per cent each.

In the open letter Sir Richard and Sir Howard write: "There is no way that the majority shareholders of Manchester Airport will ever let this Peel proposal get off the ground."

Last year, the airport generated £25m for the councils and Manchester warns that selling it could lead to council tax increases of 20 per cent in the city.

The rejection came as leading economic figures rounded on Mr Whittaker’s suggestion, put forward in a letter to the leaders and chief executives of the 10 councils and revealed by the M.E.N. yesterday.

The letter, – co-signed by Peel’s managing director Andrew Simpson, said the sale of MAG could raise an instant £3bn and attract a further £4bn in private-sector investment.

That would more than double the £3bn in government loans and grants the councils hope to get in return for a peak-hour congestion charge of up to £5 a day.

Critics have also pointed out that Peel already owns a number of airports, including Liverpool John Lennon – Manchester’s main regional rival.

Geoff Muirhead, chief executive of MAG, described the Peel plan as ‘fundamentally flawed’ and pointed to the unique way MAG’s profits are returned for council services.

In a stinging rebuke he said: "Manchester Airport is a huge success story for the north west region. Year on year, MAG has returned excellent profits for the 10 shareholding authorities of Greater Manchester. The same cannot be said of the privately-owned Liverpool John Lennon Airport.

"The debate about the future of the north west transport system is far too important to be subverted by the narrow commercial interests of a single private company."

Colin Sinclair, chief executive of inward investment agency Midas, whose role includes attracting businesses to Greater Manchester, said the airport was the ‘jewel’ in Manchester’s economic crown and should not be sold.

He said: "The suggestion that the airport should be sold to fund essential improvements to the transport infrastructure is a complete distraction from the key issues facing our economy."

John Merry, leader of Salford council, said the airport had thrived and prospered under local authority control.

He said: "I am extremely disappointed that Peel, who contribute in so many other ways to the development of the Manchester economy, could suggest something that would potentially wreck it."

Mike Chambers, Oldham’s deputy chief executive, said: "Officers at the council are considering the letter along with their Greater Manchester colleagues."

Leaders of the other councils involved declined to comment.

Peel bosses, whose empire includes the Trafford Centre, have said there is no connection between their business interests and the suggestion that MAG be sold.

The idea seemed to be winning support on the M.E.N.’s website last night.

An exclusive poll on manchestereveningnews.co.uk showed 82 per cent of respondents would prefer to sell Manchester Airport to fund the Metrolink extension than introduce a congestion charge.

Peel boss Mr Simpson said: "Sir Richard Leese and Sir Howard Bernstein are dismissing this alternative without any proper debate or review to assess its merits. They seem to be forgetting their commitment not to go forward with damaging road charging proposals unless they have the support of the public and the support of business. It is clear that they do not.

"Last year, Manchester Airport paid a dividend of £25m. Nine of the councils received only £1.25mn in dividend, equivalent to less that £10-a-year council tax. If they sold the airport and put the money in the bank the councils would earn over £150m in interest per year.

"Manchester has no need to own airports in Bournemouth, Hull and Derby. Manchester Airport’s passenger growth has ground to a halt and it is bottom of the pile of major airports. Privatising the airport would give it fresh impetus and capital for expansion to the benefit of the whole region.

"Peel’s proposal is a genuine alternative to road charging and would fund massive transport improvements.

"We only wish to engage in a reasoned debate on the alternatives to ensure that the right decision is made for the region as a whole."

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