Highland Airways, which is acquiring another Jetstream to meet rising demand, believes its diverse business base will enable it to survive continually increasing costs.

Colin Munro, business development manager, says growth areas include servicing the oil industry and fisheries protection work. Other activities range from aerial works, charter and freight to survey and surveillance.

"We have recently leased an additional fourth Jetstream. It is already fulfilling an oil related contract. The three Jetstream 31s we already had are in constant use and we need another to cover when maintenance is due. In fact our concern is that if we win some likely additional work, do we upgrade the fleet further?" Munro says.

For the last five years Highland Airways has operated three Jetstreams. It also operates a Cessna F406 with

two additional F406s servicing requirements of the Scottish Fisheries Protection Agency (SFPA).

Based in Inverness, it regularly operates from all the Scottish airports, flies to the northern and western

isles each day, and, in the summer season, has a significant presence in Aberdeen to serve the oil industry. Highland Airways has also run medium term corporate contracts from the central belt of Scotland to Manchester, Bristol and Norway. It also operates ground handling at Inverness, Stornoway and Benbecula in support of its air operation.

Established in 1991, Highland Airways favours nine to 46 seat turboprop aircraft and its contract air charters include daily newspaper deliveries and Royal Mail from Inverness to the western isles. The company also operates passenger services between Inverness and the western isles, some of which are subsidised by government, as they are defined as lifeline services. Aerial reconnaissance operations are undertaken for a variety of agencies connected with maritime protection.