Norfolk Air today announced it had signed a contract with Nauru-based Our Airline to provide flights between Norfolk Island and Australia from May 21 next year.

The move follows the recent sale of Melbourne-based Ozjet Airlines, which has chartered a Boeing 737-200 to Norfolk Air since it began operations a little over two years ago.

Norfolk Air CEO Ewan Wilson said the island would get a newer-generation 737-300 aircraft under the terms of the contract, signed by the Norfolk Island Government as the owner of Norfolk Air.

�This is excellent news because we will be getting a newer generation airline that will not only reduce our fuel bill considerably but give us extra reach and capacity,� Mr Wilson added.

�We can also base the aircraft on the island and paint it in our own livery, and will be able to call on a second 737-300 as back-up, something that will improve our efficiency considerably.�

Mr Wilson said the agreement capped off a great year for Norfolk Air, which operates three services a week to Sydney and Brisbane, single flights to Newcastle and Melbourne, and is to start a second Melbourne flight on September 1 and a new Gold Coast service from October 2.

�Not only have we added new gateways but we�ve been able to improve our year round load factor and yield, and are on line for a second profit in as many years despite record fuel costs.�

He said the Our Airline contract provided for two highly regarded Australian aviation companies to service the new aircraft � Brisbane-based Jetcare for line maintenance work and John Holland Aviation Services in Melbourne for all heavy maintenance.

Further details: Ewan Wilson, Norfolk Air, 0011 6723 51737 Bill Gray, MG Media Communications 02 9904 0011