Grapevine: Stoddart Planning to Set Up Low-Cost Airline

Minardi boss Paul Stoddart is planning to set up a new low-cost airline in Melbourne following the sale of his European Aviation company.

"This is still in its infancy, but we would be offering prices that I can say would make us very popular with passengers," Stoddart told the Herald Sun newspaper. "We are in the process of evaluating the business of a discount air carrier, yes.

"I have sold my airline here, which doesn't wrap up for another couple of months. Obviously, Australia is a market I have an intensive interest in and I have been watching the industry since Virgin Blue came in.

"I feel they have moved away from the true ethos of a genuine discount market carrier, especially in an Australian market without Ansett."

Stoddart's European Aviation airline had valuable licences to operate Boeing 747 and 737 jets worldwide and used Bournemouth airport on Britain's south coast. He had bought five retired 747-200 jumbo jets from British Airways in December of 2001.

According to the Herald Sun, Stoddart made $316 million from his aviation business last year.

Stoddart's lawyer Trevor King has just registered the business names OzAir and Eurojet in Victoria, Australia.