Have you considered thermal EPOS receipt printers? These are quite compact and available with cutters. Being a thermal printer it is not a problem if the strip does not cover the whole print area - so a guide could be made to ensure correct alignment (approx 80mm -> 25mm).
Your only problems then would be - is the thermal head man enough to 'burn' flight strip paper, will the cutter be able to cut it and can you drive it easily
