Manx2.com is taking over a former BA hanger to set up a new maintenance base and company headquarters at Ronaldsway.
In an agreement with the Government, the company will completely refurbish the 5,000 square foot site.
It will provide hangar space for the growing fleet and an engineering base, with offices included.
Manx2.com says the development will make it more convenient to maintain the aircraft and so minimise the possibility of delays to the schedule caused by technical problems.
The intention is to turn it into a centre of excellence for turboprop aircraft maintenance.
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