Stobart Group to cut jobs after Easyjet scraps Southend and Stansted bases
Stobart Group today said it would cut jobs at Southend and Stansted airports after Easyjet yesterday said it would pull the plug on its operations at the two sites.
Shares in Southend Airport-owner Stobart Group fell 4.7 per cent to 28p this morning.
Stobart Aviations Services provides check-in and baggage handling services to Easyjet at both Southend and Stansted airport.
“As a result of the decision to close these airport bases, Stobart Aviation Services will enter a consultation process with the teams affected by this as part of a wider cost management programme within the aviation division,” the company said.
Stobart said it had already started a consultation process at Southend “in view of the challenges presented by covid-19 and the resulting impact of blanket quarantine measures implemented by the UK government”.
Stobart raised £100m from shareholders in June and the company said it “remains confident in the Group’s balance sheet, liquidity position and the medium-term opportunity for its key strategic London airport asset”.
Chief executive Warwick Brady said: “We are disappointed that Easyjet has taken the decision to close its airport bases serving the North and East of London. However, we expect that this decision will create significant opportunity for other airlines looking to take on established, popular and profitable routes.
“London Southend Airport has a catchment area in excess of 8m people, regular direct trains from London Liverpool Street in 51 minutes and can offer a cost-efficient base of operation for airlines with an increasingly enhanced passenger experience for post-covid-19 travel.
“Though the 2020 summer and winter periods will continue to be challenging, we expect passenger demand for short haul leisure flying to increase through 2021, and we are in active dialogue with airlines regarding their interest in capitalising on these well-established, profitable routes.”