AN AIR taxi company using a new breed of Very Light Jets (VLJ) is scheduled to take off from Oxford Airport in May next year.

Managing director of the new firm, the name of which will be announced at the Farnborough Air Show next month, will be David Fletcher, a pilot with Monarch Airlines.

He said: "We are convinced this is the right time for an operation like this, but being a small player in the lucrative business aviation market can make or break you if you don't have the right aircraft, or the right airport base.

"We have been convinced of the merits of Oxford Airport from the outset, with its extremely attractive airport charges, its position outside the London terminal movement area, a strong and affluent catchment area and owners who have pledged considerable investment to make Oxford a first-class business aviation airport."

He said air taxi costs could fall to less than BA business class fares on some routes.

The new company will lease a £1.5m four-seater Embraer Phenom 100, with an option to acquire two more in 2012.

Business aviation at Oxford Airport has doubled over the past three years.

Head of marketing and development at Oxford Airport, James Dillon-Godfray, admitted that recent fuel cost hikes would definitely hurt the airport's planned expansion, but said: "Only 20 per cent of the cost of business flying is down to fuel, so we feel we can weather it."

In July a new £2.5m business centre opens at Oxford Airport, creating 20 new jobs. Another 20 jobs will be created in September when PremiAir transfers its fixed wing aircraft maintenance division to Oxford from Blackbushe in Surrey.

Mr Dillon-Godfray said: "The new aircraft maintenance jobs will go some way to replace some of the jobs which were unfortunately lost last year when the engineering division was closed."

Earlier this year the airport was bought by property developers David and Simon Reuben, with finance house Dawnay Day, from BBA in a £40m deal.

Pilot training makes up about 40 per cent of the airport's business, with seven per cent business aviation, including the taxi and medical charter flight operators AirMed, and the rest private and recreational.

The air training school was also sold last year to GCAT for £32m. Since then a further £7m has been invested in improvements to the runway and infrastructure.