Published on August 9th, 2017 | by Mark Dwyer0
Stobart Acquire three Embraer 195’s
Stobart Group have announced that its aircraft leasing business, Propius Ltd, has signed an agreement with a special purpose company managed by GOAL German Operating Aircraft Leasing GmbH & Co KG to purchase three Embraer E195 jet aircraft. The aircraft are currently on a lease agreement with European regional airline Flybe PLC, running to the second half of 2018. Propius will purchase the aircraft from GOAL for a reported USD56.0 million.
The aircraft will continue to be leased to Flybe until late 2018 with an estimated total lease income up to that date of USD9.2 million. Stobart Air, which currently operates a fleet of 17 ATR turboprop aircraft aims to operate 20 aircraft in 2018. Stobart have worked with GOAL in the past having already arranged the financing for eight ATR72-600 aircraft through the company.
This news comes as no surprise as we reported back in February (see here) that Stobart were advertising for flight crews to operate the new Embraer aircraft.
“Aviation is a core part of the group’s strategy to grow the overall business. The investment into the Embraer 195 aircraft will support the growth plans in our regional airline and aircraft leasing businesses, and adds further flexibility as we continue to grow our regional airline, develop our valuable long-term franchise with Aer Lingus, support Flybe in the Isle of Man and grow passenger numbers at London Southend Airport,” Chief Executive Warwick Brady said. Read the full Irish Independent interview with Stobart Group CEO Warwick Brady here.
Stobart Air is investing €25m and adding 60 jobs as it intensifies its relationship with UK airline Flybe by operating 12 new routes for the airline out of Southend Airport this summer. Stobart Air expects to carry a total of more than 2 million passengers this year, compared to about 1.5 million in 2016. It’s understood that the new Embraer 195’s will be used in part to re-launch the Dublin-London Southend route which was scrapped by Aer Lingus Regional just over two years ago. The new route is planned to restart on 29th October with two or three daily services depending on the day of the week.