Proposed start-up Palau Micronesia Air plans to launch passenger services in December, linking six Pacific islands and two Asian countries using a Boeing 737-300.

The carrier, formerly known as Palau Air, says it is close to finalising a lease deal for its first 737-300 and seeks to add a second next June. The carrier plans to link Palau with Tokyo, Manila and Guam.

There are also plans to operate a service between Guam and Saipan in the Northern Mariana Islands and a flight linking Palau and Guam with the Micronesian islands of Chuuk, Pohnpei and Yak. These flights were added to its initial schedule after the governments of Chuuk, Pohnpei and Yap bought stakes in the start-up.

Palau entrepreneur and hotel owner Alan Seid founded Palau Air five months ago and agreed to add Micronesia to the carrier's name to reflect the ownership, which also includes new private investors from Palau and Japan.

Source: Flight International