Published on June 12th, 2021 | by Alan Dwyer0
Stobart Air Cancels All Flights
Late on Friday evening, Stobart Air announced to their staff that the proposed deal to sell the airline to the Isle of Man based Ettyl Ltd had fallen through. Following this revelation, the airline has now suspended operations and the company are now seeking a liquidator. Stobart Air operated all the Aer Lingus Regional flights with bases in Dublin, Cork and Belfast City Airports. Currently, the only scheduled services from Dublin were the Public Service Obligation (PSO) routes to Donegal and Kerry while their Cork Airport base has not yet reopened following the pandemic. None of the Aer Lingus Regional flights operated from Belfast City airport on Saturday morning. The two aircraft that overnight in Donegal and Kerry that operate the early morning service into Dublin positioned empty back to Dublin arriving shortly before 09.00 and parked remotely from the terminal on the west apron.
Speculation surrounding the deal to sell the airline by Esken Ltd, the owners of Stobart Air, to Ettyl had surfaced in recent weeks over the financial arrangements secured by Ettyl. In a statement to the UK stock exchange on 28th May after the markets had closed, Esken Ltd., said that it had “become aware that Ettyl’s proposed financing for the transaction is no longer available and understands that Ettyl is progressing discussions with another potential financing source. is investigating these matters and seeking further information, including with regard to the impact this may have on the ability of Ettyl to finance the transaction and obtaining the change of control consents required in order to complete the transaction. Esken is discussing this matter with its lending banks given banking facility consent for the sale has been obtained.”
In a letter to staff, Stoabrt Air said that ‘in the absence of any alternative purchasers, or any alternative source of funding for the Stobart Air within the timescale required, Esken will not be providing further financial supports.’ The airline then terminated its franchise agreement with Aer Lingus with immediate effect