Stobart Air owner pulled plug after takeover deal collapse
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The company behind Stobart Air, which operates Aer Lingus services, has said it decided to pull the plug on the struggling airline after a potential takeover deal fell through.
London-listed Esken, formerly known as Stobart Group, said it became clear that suitor Ettyl had lost its funding and would be unable to conclude a deal.
The business then told Stobart Air’s board that it would pull support for its subsidiary — a move that has put hundreds of jobs at risk and disrupted travel plans for thousands of passengers in the UK and Ireland.
Stobart Air, which operates services for Aer Lingus, British Airways and KLM, stopped trading and called in liquidators over the weekend.
Aer Lingus and British Airways have said they will operate some of the affected routes. Aer Lingus’ Heathrow flights are not impacted.
Esken said it would continue to fund the leases on eight planes until 2023 but will try to find someone to sublease the aircraft to.
“The continuing impact of the pandemic which has resulted in almost no flying since April 2020 and the decision taken by Aer Lingus to award preferred bidder status to another party for the franchise agreement beyond its expiry in December 2022 significantly hampered the exhaustive steps taken to secure a future for the business and its staff,” it said.
Executive chairman David Shearer added: “It is disappointing for all stakeholders that we have been unable to conclude the sale of Stobart Air as a going concern despite the tireless efforts of my executive colleagues, the management team of the Airline and the team of advisers who have supported them.
“I am acutely aware of the impact this will have on the staff, customers and the businesses associated with the Airline but the continuing impact of the pandemic in terms of lockdown and limited travel has prevented us from achieving a better outcome.”