Highland Airline in exclusive takeover talks

EMBATTLED airline Highland Airways yesterday confirmed it was in exclusive takeover talks with an unnamed bidder.

The airline, which ran into trouble last month, said it was "cautiously optimistic" about its future and is ready to take flight bookings until the end of March.

Highland was forced to temporarily suspend its online reservation system in January. Although it resumed normal service this month, there have been ongoing concerns about the airline's long-term viability.

The company yesterday said: "Since 25 January, Highland Airways has been in discussions with a potential purchaser of the entire share capital of the company.

"More recently we have signed an exclusivity agreement with this party and they are currently negotiating with the key stakeholders and creditors in the business in order to ensure its future viability."

Air Charter Scotland has previously been linked to a potential bid for Highland.