Irish regional airline Stobart Air ceases trading



© Reuters. FILE PHOTO: A regional internal Aer Lingus flight begins to land at Dublin Airport, Ireland, March 26, 2021. REUTERS/Clodagh Kilcoyne

DUBLIN (Reuters) – Irish airline Stobart Air, which provided regional services in Ireland and Britain under the Aer Lingus Regional brand, has ceased trading and is in the process of appointing a liquidator, its owner said on Saturday.

Aer Lingus said in a statement that all Aer Lingus Regional flights operated by Stobart Air, including routes to Edinburgh, Manchester and Belfast, had been cancelled.

Before the COVID-19 pandemic grounded much of its fleet of 13 turboprop planes, Stobart operated around 900 flights per week across 30 routes in Ireland, the United Kingdom and Western Europe, most of them under the Aer Lingus Regional brand, according to its web site.

It employed 480 people.

“The Board of SA (Stobart Air) has terminated its franchise agreement with Aer Lingus, will cease trading and is taking steps to appoint a liquidator,” Stobart’s owner, British aviation and energy infrastructure group Esken, said in a statement.

Esken was known as Stobart Group before it changed its name earlier this year.

Esken in April said a proposed sale of Stobart Air to Isle of Man group Ettyl Ltd had been delayed due to financing issues. On Saturday, Esken said Ettyl had been unable to conclude the transaction.

Esken said a decision by Aer Lingus to award preferred bidder status to another party for the Aer Lingus Regional franchise agreement beyond its expiry at the end of 2022 had significantly hampered efforts to secure a future for the business.

See also  Google Chromecast users to get access to Apple TV services next year

Aer Lingus last year named start up airline Emerald Airlines as its preferred bidder for the franchise.

Esken said it would sublease eight ATR aircraft operated by Stobart Air until the leases lapse in 2023.

Aer Lingus is owned by International Airlines Group (LON:), which also owns British Airways and Iberia.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





READ SOURCE

LEAVE A REPLY

Please enter your comment!
Please enter your name here