LOS ANGELES: Meridiana's A319s are based in Florence. The airline owns a 15% stake in this airport, an 80% stake in GEASAR - the Olbia airports company, and a very small holding in Sardinia's other airport, Cagliari. Meridiana launched Florence-Berlin Tegel services on 3 April. Unlike Italy's two biggest airlines, Alitalia and Air One, third-ranked Meridiana tends to keep a relatively low profile from its base at Olbia in Sardinia.

The airline began life as Alisarda in 1964, created by the Aga Khan Karim to support tourism in Sardinia. In 1991, when it began international services, it changed its name to Meridiana and has since grown steadily.Last year the airline carried 4.6 million passengers on a fleet of 22 aircraft, consisting of nine MD82s, nine MD83s and four rather newer A319s. It also wet leases an ATR42 from Avanti Air to operate some of the thinner routes.

However, recent reports suggest that it intends to replace most of the fuel-thirsty MD82s and MD83s with new and leased A320s. Profitability has been marginal in recent years (load factors average between 65% and 70%) and the recent surge in fuel prices suggest that significant losses are likely in the short-term.

To enhance its business opportunities the airline is now a majority shareholder in Eurofly, an Italian leisure airline with a fleet of A320s and A330s, but a full merger is not yet planned.Meridiana owns a 50% holding in Eurofly and hosts its flights as Meridiana products on its website. However, a full merger is not yet planned. It also holds 50% in an important tour operator -Wokita.com.