Arrow, a private hire firm run by former Leeds United director David Richmond, has won a contract to operate cars to and from the recently privatised airport.

His company won the work ahead of the Hackney Carriage Associations – operators of the black and white cabs in Leeds - who previously provided the service.

The council's Licensing Panel heard there was now no taxi rank at the airport and the 70 cabs that had relied on the airport as their main source of business would have to ply for trade in the city centre.

Panel members were told that some city centre ranks were already so busy – particularly at Leeds city railway station – they caused traffic problems in nearby streets.

A report to the panel said that following congestion problems at the ranks in New Station Street and Boar Lane, a meeting had been held with taxi trade representatives. Aaction had been taken against drivers who parked illegally.

Taxi companies have already highlighted the need for more and better located ranks.

The report said the council was planning to provide more 24-hour and night-time rank spaces in Greek Street and New Briggate and launch a publicity campaign.

Coun Ronnie Feldman (Con, Alwoodley), panel chairman, said: "It's clear we have a serious problem here. There are going to be 70 more taxis looking for spaces in Leeds and we have to do something about it."

The panel will hold a meeting on February 13 involving Metro, bus companies, taxi representatives and council officers.