A NEW SPANISH regional airline, Canarias Regional Air, is targeting November to start low-fare services on routes within the Balearic Islands, the Canary Islands and mainland Spain.

The carrier, which is based in Tenerife, in the Canary Islands, will have operating bases in Madrid, Palma da Majorca and Tenerife. A network of services will be flown within the two island regions, as well as connections from the Balearics to mainland Spain via Valencia. The airline has concluded an operating agreement with major Spanish charter carrier Air Europa, which will provide assistance and undertake ground-handling work.

Canarias Regional Air is in negotiation with British Aerospace Asset Management Turboprops for the lease of up to eight 64-seat BAe ATPs. A deal is expected to be concluded imminently. The airline aims to have an initial fleet of two aircraft, which is expanding to eight by May 1997.

The new airline is being set up by Juan Socastrao, who says that financial backing to the tune of Ptas390 million ($3 million) has been secured for the project, with funding provided by a consortium of Spanish business investors. "We are aiming to offer a budget air bridge," he says, "with fares some 25% lower than competitors'."

Source: Flight International