Belgrade, Yugoslavia-based air taxi operator Avio Gamma is to receive up to €20 million ($19 million) from a Balkan development agency to establish a regional charter network.
The European Bank for Reconstruction and Development's (EBRD) Central European Initiative (CEI) provisionally approved funding for the acquisition of three 30-seat aircraft late last year. It is now drawing up business plans with Avio Gamma chairman Srbislav Milovanov.
The CEI, which comprises 17 states from post-communist central and south-eastern Europe, approved the plan to establish a network of non-scheduled flights within a 1,300km (800nm) range of Belgrade. Milovanov says the operation will fill the gap between air taxi services and airline scheduled flights.
The CEI initial funding covers the purchase of three 20-30-seat aircraft, which under EBRD rules have to be manufactured in Europe. Avio Gamma's most likely choice are two used Fairchild Dornier 228s and one BAe Jetstream 31, with a combined value of €5 million. The acquisition of new aircraft has not been ruled out, however.
The CEI will become a joint-venture partner, while Yugoslav air transport company Montavia will provide logistical support and ground handling.
Milovanov says there is a growing market for regular flights between small cities in the former Yugoslavia and surrounding countries. Destinations would include Tuzla and Mostar in Bosnia-Herzegovina, Maribot and Portozor in Slovenia, Split and Osijek in Croatia, Brno in the Czech Republic, Augsburg in Germany and Salzburg, Austria.
Six years of regional conflict have restricted Avio Gamma, Yugoslavia's first air taxi operator, primarily to pilot training and occasional charters.
Source: Flight International
