Troubled north airline in talks over investment

An aviation company which runs corporate and private business flights out of Perth Airport has emerged as a potential investor in a troubled Highland airline.

Air Charter Scotland (ACS) has held discussions with Inverness Airport-based Highland Airways.

Advance negotiations with other interested investors are also said to be progressing well, with an announcement about its future likely to be made at the end of February.

Highland Airways commercial director Basil O’ Fee said: “There is a lot of good value in Highland Airways.

“There are different ways (a rescue) could be done.”

He said the cash-strapped airline was about “a week or two” away from firming up lifeline arrangements.

ACS director George McFarlane said: “We have really just started talking to them.

“Things are at a very early stage.

“The outcome depends on what we find out after undertaking due diligence.”

Asked about the timeframe the companies were working to, he said: “How long is a piece of string?

“We are looking at the possibilities of what could be done. But it is far too early to say anything.”

Established in 2006, ACS runs a fleet of six Cessna jets out of Perth Airport, dealing with mainly the corporate executive market and private business flights.

Seats on Highland Airways flights are being sold only up to the end of February while restructuring talks take place.

The airline, which operates passenger flights to the islands and Wales, has been badly affected by the recession and high fuel costs.