The airline plans to double its current presence with the addition of new routes and increased frequencies on existing services.
Flights to new destinations in Spain, France and Italy are being considered, explained managing director Crawford Rix.
"There is plenty of room for expansion. Manchester is working extremely well for us, and we have a great deal of confidence in the market," Mr Rix commented.
The airline currently offers flights to 15 cities in Europe from Manchester and is celebrating five-years of operation at Manchester this month.
Emphasis on expansion in Manchester was highlighted at the start of the year when bmibaby announced several new services for 2008 including flights to Lisbon and Madrid – which will both launch in June. New flights to Barcelona are scheduled for December.