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Manchester Airport City's direct China flight plan a step closer

14 October 2013 Last updated at 16:53 BST

Manchester Airport has revealed it could achieve a "major objective" to offer direct flights to China, following the chancellor's announcement.

George Osborne said Manchester Airport Group will work with a Chinese company as part of the Airport City £800m plan.

Reporter Andy Gill investigates the impact on north-west England, following Beijing Construction Engineering Group's decision to invest in the project.

Airport City would be created around the Britain's third busiest airport. It will include offices, hotels, manufacturing firms, logistics and warehouses.

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