A new trading update from Stobart Group has revealed that Stobart Air, which currently operates Aer Lingus Regional services, "is operating below the scenarios set out at the time of [a £100 million] capital raise" by the group in June.
Stobart Group's trading update added, "Stobart Air is carefully managing its cost base and is working with its various stakeholders to minimise cash burn while maintaining its ability to respond to changes in [COVID-19-related] restrictions. The group is engaging actively with a number of parties interested in acquiring its stake and with Aer Lingus to enter into a new commercial arrangement beyond December 2022 as part of this process."
Sale Talks And Tender Seeking
Stobart Group revealed in early September that it is in talks to sell Stobart Air, and it was subsequently reported by The Irish Independent in late September that Aer Lingus is seeking tenders to operate its regional service following the expiration of the current contract at the end of 2022.
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© 2020 Hospitality Ireland – your source for the latest industry news. Article by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.