Gandalf Airlines made Italian aviation history on 23 December when it become only the second carrier in the country, after Alitalia, to undertake a successful initial public offering. The company, which was established by a group of venture capitalists in April 1998, started operations in April 1999.
Despite the explosion of regional airline start-ups in Italy over the past few years, Gandalf's founders believe that a niche market exists in Milan to provide local businessmen with scheduled services to international destinations using medium capacity aircraft. Gandalf has become one of a growing group of carriers using Orio International Airport, at nearby Bergamo, from where flies 50 flights a day to 10 destinations, including London City, Paris, Zurich, Barcelona and Amsterdam.
The initial fleet comprised four Fairchild Dornier 328-100 turboprops, and Gandalf wet-leased an Embraer RJ-145 from Spanish regional ERA for daily services between Milan and Barcelona.
Load factors of little more than 30% were recorded for most of the year, with peaks of up to 45%, prompting the company to introduce Italy's first new generation of regional jets.
A contract for four 33-seater regional jets was signed with Fairchild Dornier, with the first delivered in November and the second in December. The remaining aircraft are expected by April.
Source: Airline Business
