The sale of Leeds Bradford airport has taken a significant' step forward with a shortlist of potential investors.

The project board representing the five local authorities which own the airport has selected a shortlist of would-be buyers who are now being invited to submit final and binding bids.

The board is said to have received very strong initial bids from infrastructure operators, private equity investors and airport operators, and is confident of good offers in the next round of bidding.

Paul Brook, the chairman of the project board leading the exercise said: "Indicative prices we have received demonstrate that there is a strong interest for the airport, reflecting the excellent development potential of the business and its catchment area.

"These prices have been excellent even in comparison to the high transaction multiples currently prevailing in the sector."

Shortlisted bidders now have until February 28 to refine their proposals into binding bids for the airport. At that stage the shareholders will select a preferred and reserve bidder to complete the transaction.

The decision to sell off the airport was taken last year by the five local authorities - Leeds and Bradford, which each own 40 per cent, and Kirklees, Wakefield and Calderdale, which own a total of 20 per cent between them.

The councils agreed to start the sales process by advertisement on November 14, with initial expressions of interest to be received by November 27.

The whole process is expected to close by April this year.

Independent analysts predicted the airport would attract interest from large private consortiums, made up of between five and ten investors.

The sale is expected to be worth more than £100 million.

In 2005 a total 2.6 million passengers passed through the airport - a number which is expected to grow to 6.9 million by 2030 when the airport's masterplan is implemented.

In a report to the shareholding councils last year consultants Ernst and Young said there was a significant appetite' in the market at the moment and it advised outright sale of the airport - or a 60 per cent sale if the shareholders did not all agree.

The consultants said it would be timely' to bring forward any sale, adding: "an international incident, that affects the aviation industry, could dampen market appetite."

Aireborough and Horsforth MP Paul Truswell has called for part of the windfall from the sale of the airport to be used to tackle its impact on local communities.

The MP has called for a concrete commitment to using a chunk of the money raised to tackle the present and future impact of the airport.