HolidayAir, which has been waiting in the wings for more than a year, will finally take off in March, CEO Arjun Ruzaik said recently.

The airline hopes to open its office at the Colombo International Airport next month and launch the first flight on March 10.

Initially, HolidayAir plans to fly to Cochin, Calicut, Trichy and Trivandrum in India, and within two years fly 16 to 20 routes in Asia and the Middle East, including Malaysia, Thailand and Singapore as well as the Maldives.

HolidayAir has only one A320 aircraft, but in two years as it begins to serve other destinations, it will have eight aircraft.

A consortium of local and foreign investors has come on board the airline with a US$20-million (Bt711 million) investment.

"A consortium headed by Sri Lanka's Asia Capital will be investing locally, while there is a consortium of Malaysian investors and we have also tied up with a leading regional airline," said Ruzaik.

He declined to comment on the Malaysian investor or the regional airline concerned. But airline sources said that Malaysia's AirAsia headed by Datuk Tony Fernandes has acquired a near 50-per-cent stake in the company.

Three Sri Lankan companies - HolidayAir together with Deccan Air and Expo Air - were granted approval to fly to four destinations in India late last year by the Civil Aviation Authority, but the latter two dropped out of the race after a much publicised battle.

HolidayAir is expected to give Sri Lanka's national carrier, SriLankan Airlines, a run for its money with low-cost operations and much cheaper tickets.