Debt-free Loganair looking to pick up new routes

Published on Friday 13 November 2009 20:51

LOGANAIR, the Scottish airline that services the Highlands and Islands, is circling BMI and expects to pick up more routes and business if Lufthansa starts selling off parts of its UK acquisition.

Scott Grier, Loganair's chairman, told The Scotsman that his airline was in a strong financial position with no debt and expected to make acquisitions within the next 12 months.

As well as looking to pick up more scheduled flights, Grier said he was looking to further diversify the airline's business model by taking on more contract work.

He said Loganair was currently bidding for more corporate travel contracts, building on work already being carried out for the oil and gas industry in Aberdeen and for English Premiership football clubs.

Grier said: "We think we will be the beneficiaries of the problems that other airlines are suffering. We're especially watching what's happening with British Midland.

"The airline is making huge losses and that can't be sustained so Lufthansa will be hoping to move on parts of that business to other operators. We're not aspiring to fly jets to London but we do believe there will be opportunities in the provinces that will be of interest."

Grier's comments came as accounts filed at Companies House revealed Loganair's revenues rose by 11 per cent in the year to 31 March to 58.5 million.

Pre-tax profit fell from 4.3m to 3.1m after the banking crisis and ensuing recession took its toll during the second half of the airline's financial year.