Coventry Airport has said plans to attract companies to set up shop on the land around the airport will continue, despite the government not granting the area 'Enterprise Zone' status.
The £250 million project to build up the area surrounding the airport - and create 14,000 jobs ­­- would press ahead even without the special incentives offered by the scheme.
Last week the government announced a further 11 Enterprise Zones, but Coventry was not among the names on the list.
The decision is inevitably a blow to the airport, which only reopened for business when it was bought by Sir Peter Rigby in April last year.
Becoming an Enterprise Zone, would have given the Coventry the advantage of attracting firms to the area by offering tax breaks, a relaxation of planning rules and superfast broadband.
However the bid - which was put together by the Coventry and Warwickshire Local Enterprise Partnership (LEP) and spearheaded by Coventry Airport's owner Sir Peter Rigby - was rejected last week by the government.
Coventry leaders were keen to secure an Enterprise Zone to try to boost the local economy by attracting businesses to the region and creating a number of skilled jobs.
Firms relocating to the zone would have been offered a business rate discount worth up to £275,000 over five years, and able to by-pass lengthy council planning application procedures.
The redevelopment plans at Coventry aim to overhaul the land around the airport to create aerospace, automobile and high-value manufacturing jobs. The construction of a hotel and restaurant are also in the plan.
Denys Shortt, the chairman of the Coventry and Warwickshiure LEP said the news that the area had not been awarded an Enterprise Zone was "a setback" but that the LEP was still making key strides in boosting the local economy.
He said: "Of course we are disappointed and the news comes as a setback to the LEP and Coventry and Warwickshire.
"We believe our proposal - with the creation of 14,000 jobs - was very strong. We will continue to make it happen without the EZ.
"We will continue to focus on building the Coventry and Warwickshire economy and removing barriers to growth."
Coventry Airport was closed in December 2009 after West Midlands International Airport, which owned it at the time, hit financial difficulties and went into administration.
