GILL Airways is transferring its engineering business to Anglo-Normandy Aeroengineering.

In what the airline describes as a "win-win" deal for all parties, Guernsey-based Anglo-Normandy will acquire the maintenance facilities and engineering staff of Newcastle-based Gill Aviation.

In a statement, David Jackson, Anglo-Normandy's managing director, said: "Following several months of discussion, Anglo-Normandy can confirm its acquisition of Gill's engineering business.

"We will initially support the current Gill ATR 42 and ATR 72 operations in Newcastle, with a view to expanding the business to support other operators.

"The company anticipates that any future expansion will not only create further employment opportunities, but will attract other aerospace related businesses to the area, in partnership with or in support of these developments.

"We have been seeking opportunities to develop our operations for some time, and this project should complement our existing business profile in Guernsey and support our strategy for expansion. We are looking forward to working closely with Gill on this matter."

Gill chief executive Malcolm Naylor said: "This move will enable us to concentrate on our core business of running scheduled air services, while also giving Anglo-Normandy the opportunity to develop aircraft engineering at Newcastle by exploiting the market opportunities that undoubtedly exist, but to which we were not best placed to respond.

"It's a win-win deal that not only brings these opportunities to our region, but also enables us to maintain control of our costs."

Trevor Went, managing director at Newcastle Airport said: "This decision comes at a time when we are encouraging Government to recognise and respond to the benefits of locating maintenance operations at regional airports, in formulating its 30-year policy on aviation.

"We have already identified maintenance as a key area within our development strategy, which will have a hugely positive impact on the North East's economy.

"Outline planning permission has already been obtained for a suitable maintenance site on the south of the airfield and feasibility work is under way to attract investment, which will create jobs and supplement the regional engineering skills base