London City Airport has marked 25 years of operating with the announcement of a �15million investment programme.

Plans include the refurbishment of the Western Pier, with new departure gates and improved lounge facilities, re-development of the International Arrivals Hall and enhancements to baggage handling zones. Work will begin in early 2013.

The airport currently handles 70,000 flights every year, and has permission to increase numbers to 120,000, carrying as many as 10 million passengers annually.

Declan Collier, CEO of London City Airport said: “LCY is valued by business travellers for its location, being the closest airport to the City, West End and Canary Wharf, as well as its convenience in terms of access and speed of transit - 20 minute check-in, door to gate and 10 minute arrival, tarmac to train.

“With the investment we’ve announced today and further infrastructure work over the next three years, we can reach our permitted capacity, maintain our high standards and absorb some European air traffic from other airports in the South East that are beginning to feel the strain.”

In 2012, its 25th year of operation, LCY celebrated its millionth flight, welcomed its 36 millionth passenger, hosted an anniversary visit from The Queen and was named best airport of its size by industry peers at the Airport Council International Europe Awards.

London City Airport was officially opened by the Queen on November 5 1987. In its first year of operation four airlines offered flights to three destinations - Brussels, Paris and Plymouth. The airport is currently home to ten airlines flying to 42 destinations across Europe, as well as a twice-daily New York service.

This year 3.2 million passengers are expected to travel through the airport, which is located just three miles from Canary Wharf and six miles from Bank and is connected to both via the Docklands Light Railway.