An MBO team including CEO Malcom Naylor has acquired Gill Airways, a small regional UK airline.
Bank of Scotland has backed the deal with a £3.9m long-term loan through a holding company.
Gill used to be owned by 3i and institutional investors. It then entered administration under Arthur Andersen with debts of £13m. Gill has since halved its fleet of planes and increased passenger numbers.
Gill is based in Newcastle and is up against British Airways on the routes to Belfast, Aberdeen and Dublin. The company expects to be profitable on a turnover of £46m in the year beginning this May.