A new airline service backed by a multi-million euro investment is to be launched by a group of Waterford businessmen within the next four months.

FlyU intends to fly to destinations including Malaga, Faro and Bordeaux from both Waterford Regional Airport and Galway airport.

Investors in the service include Nicholas Fewer, the chairman of Waterford airport, and Donal Ormond, a shareholder in WLR FM. Both men will have non-executive roles in the new business.

A UK-based airline consultancy has also taken a stake in the carrier.

FlyU is initially buying a 100-seat jet aircraft. It hopes to expand its network to include three other destinations, which are likely to be part of a winter schedule.

The chief executive of the start-up, Peter O'Mara, said that FlyU was taking a "cautious" approach to its operations and had undertaken extensive research which indicated a sufficient level of demand for what he described as "niche services".

He said that the airline would not be attempting to compete directly with established carriers.

Mr O'Mara, who is currently head of marketing and route development at Galway airport, said that FlyU would initially hire up to 30 people.

He said that, during its first year of service at least, the aircraft would be operated on FlyU's behalf by an established airline, but that FlyU intended to apply later for its own air operator's certificate.

He added that negotiations with the third-party airline were at an "advanced stage".