Just reading Airliner World there, apparently the Palmair contract is going ahead. Article reads:
"Independent UK carrier Palmair has entered into a contract with Flyglobespan to damp-lease one of its Next Generation (NG) Boeing 737-600s. The aircraft was ferried to East Midlands Airports in early January to be painted in the Bournemouth - based carrier's levery for operation on its flights to the Algarve, Corfu, Fuertaventura, Lake Garda, Lanzarote, Madeira, Mallorca, Minorca, Sorrento, Tenerife and Tunisia.
Palmair had previously utilised a European Aircharter B737-200, but was forced to seek an alternate provider when that airline went into administration in 2008. It subsequently agreed a short term deal with Jet2 to use a B737-300 but will no fly the more modern NG model. It has won many plaudits for its excellent customer service and was ranked the best short haul airline in the world for 2008 by consumer magazine Which?"
Best short-haul airline in the world? Bit far is it not?
Regards,