‘£10m backing’ for new air service to London

Aug 28 2009 by Iain Laing, The Journal

A GROUP of businessmen who plan to launch a North East airline to fly between Teesside and London say they have lined up £10m backing.

Excelsis Airways says it has secured backing from European equity funds and hopes to begin a service between Durham Tees Valley Airport and London’s City Airport this year.

The service would be a big boost for the North airport, which has seen passenger numbers fall this year and lost a bmi flight to Heathrow and a Ryanair service to Dublin.

Excelsis is keen to establish its credentials despite not yet having an operating licence, an office or any aircraft. It is currently based in the boardroom of the Thistle Hotel in Middlesbrough. But the company said yesterday the funding would help it lease two 72-seater turbo prop planes and get its operator licence within weeks.

It said it was still in talks to open a permanent base at Morton Palms business park in Darlington and set up a regular service with City Airport.

The company said it could not reveal the names of the investors backing it or give details about its founder, Victor Bassey, beyond confirming he is a Nigerian who has held executive roles with other airlines.

Mr Bassey said: “We have been given clear commitments for financing. They [the funders] are impressed by our business plan.” Mr Bassey and the head of the new management team, CEO Andreas Blass, say they have been involved with the start-up of other airlines around the world but declined to give details.

Flight operations director Andrew Bray is a former test pilot and chief commercial officer Keith Watson was previously head of sales at Eastern Airways.

Meanwhile, Eastern Airways is to introduce a daily weekday service from Newcastle to Bergen in Norway on October 5. The service is aimed at North East businesses with links in Norway, particularly in oil and gas.

Mike Pedersen, of the North East’s Norwegian Collaboration Centre, said: “Bergen provides the heliport base for the Norwegian continental shelf oil and gas industry and serves thousands of workers, many of whom originate from the North East.” NewcastleGateshead Initiative chief executive Andrew Dixon said it was a fantastic boost.