Plans to launch an airline to serve the Falkland Islands in the South Atlantic from the South American mainland have been postponed until later this year.

British South Atlantic Airlines (BSAA) had been planning to start operations between the Islands and Sao Paulo, Brazil, in April with a wet-leased British Aerospace 146, initially in support of the region's emerging oil industry. Plans called for the route to be opened to Falkland Islands residents, and the BAe 146 replaced by a Boeing 737-200 leased from British Airways.

Sources suggest that the airline launch has been delayed because of disagreement between two companies involved in the Falkland Islands oil exploration. Meanwhile, Air Atlanta Icelandic has been contracted through to next March to fly oil workers direct from London Stansted, using a Boeing 747SP.

Source: Flight International