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Eastern Airways has won a new contract to operate flights between Aberdeen and Sumburgh for BP, with the creation of up to 25 jobs.
Eastern Airways is to acquire Air Southwest, the Plymouth-based airline with 135 staff, from Sutton Harbour Holdings.
Eastern Airways is to set up an operation at London City Airport, and flights to Amsterdam will start in January.
Eastern Airways of Humberside is expanding its fleet with two new Jetstream 32 aircraft next month, and is looking to launch at least one new route.