It has been confirmed that IAG has sold BMI Regional for £8 million cash by Aberdeen-based aviation consortium, Sector Aviation Holdings. The sale includes all the airline’s fixed assets and long-term liabilities, including owned and operating lease aircraft.

If the Civil Aviation Authority (CAA) approves the sale, ownership is expected to be transferred to SAH within two weeks.

IAG acquired the airline, together with Bmibaby, as part of its purchase of BMI last month and had been looking offload it since. There was much speculation that it would have to close the airline if a buyer was not found quickly, putting around 330 jobs at risk. The fate of Bmibaby still hangs in the balance, however, as a buyer is yet to be found.

IAG chief executive Willie Walsh said of the sale: “This deal provides a future for BMI Regional and should secure around 330 jobs”.

The Scottish Passenger Agents’ Association (SPAA) has welcomed the news, particularly the reports which say the new owners plan to develop the route network.

SPAA President Kevin Thom said: “There is real strength-in-depth in the new ownership and management team of BMI Regional.

“The new owners are known for their commitment to the area, and it augurs well for the future of this vital network of business and leisure air services from Scotland’s northeast, and for the job security of several hundred hardworking employees.

“It’s an excellent outcome – for Scotland’s travellers and the Scottish economy – and one that we warmly welcome. We’re confident our Members will do all they can to continue and strengthen their long-established support of BMI Regional, under the new ownership.”

In a press conference in Edinburgh yesterday, Ryanair chief executive Michael O’Leary announced that the airline is to drop five routes from Edinburgh Airport, after it failed to persuade its owner, BAA, to reduce its fees.

The announcement means that 300 jobs will be lost, one of its seven aircraft will be withdrawn and flights from Edinburgh to Berlin, Malmo, Murcia, Ibiza and Tallin will be dropped.

The airline will continue to fly to 35 destinations from the airport, but will carry 300,000 fewer passengers this summer from last year’s. O’Leary warned that if Ryanair is unable to secure “more competitive terms” by the time it is due to renew its five-year contract with the airport this October, then it may have to drop more routes.

BAA is in the process of finding buyers for the airport after it was ordered to by the Competition Commission, so this announcement will not help the situation. Final offers are expected by April.

O’Leary said: “While Ryanair remains committed to Edinburgh Airport (and with 1.5m passengers and 35 routes, we continue to be one of the largest airlines operating to/from Edinburgh), BAA Edinburgh cannot continue to ignore the competitive marketplace, where airports all over the UK and Europe have been reducing costs and lowering charges in return for traffic growth.

“We hope even at this late stage that BAA Edinburgh will realise that the way to grow traffic and jobs is by working with Ryanair to lower passengers fares, not raise them.”

In a time of increasing unemployment (2.67million to be precise), there is some hope in an announcement from Virgin Atlantic that it is looking to recruit 500 new cabin crew.

Virgin says it is expanding its network and fleet, and will advertise jobs throughout the year on www.virginatlantic.com

The jobs will be based out of London Heathrow and Gatwick airports, running the airline’s new routes of Cancun and Vancouver plus other long-haul destinations including New York, Barbados, Las Vegas and Shanghai.

Corneel Koster, director of operations, safety and security for Virgin Atlantic, said: “It is an exciting year of growth and investment for Virgin Atlantic as we look forward to expanding our network and welcoming a new fleet of aircraft.”