Page last updated at 19:46 GMT, Monday, 14 December 2009

Airline says finance talks go on

Flyglobespan aircraft
The company said it planned to expand its services

Scotland's largest airline, Edinburgh-based Flyglobespan, has denied it is on the brink of collapse.

Instead, the company issued a statement on Monday evening, saying talks about a major funding package from Halcyon Investments Ltd were continuing.

Flyglobespan said the investment package was subject to regulatory approval but was about to be finalised.

The deal, said the group, would allow it to expand its airline and associated products and services.

A statement from the airline said: "Globespan confirmed that their proposed investment from Halcyon is still in progress and both parties are committed to reaching a positive outcome.

"We expect that the Halcyon Investment into the Globespan Group will be finalised following regulatory approval.

"Both parties are keen to bring this to a successful conclusion and are totally focussed on making that happen."

Earlier this year, Flyglobespan announced it had made an operating profit of £1.2m following a loss of £19m the previous year.

Set up in 2002, the company operates from five UK airports, including Glasgow, Edinburgh and Aberdeen.

Earlier this year, it pulled its services out of the Durham Tess Valley airport, blaming the worsening economic climate.

The company flies to various European holiday destinations such as Spain, Portugal and Turkey as well as further afield to Egypt and Florida.

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