Aer Lingus has decided not to make Stobart Air its preferred supplier for a new commercial agreement, which would have commenced from 2023. Stobart Air will continue to operate the Aer Lingus franchise until that time.
Stobart Group warns that if it is not awarded a new commercial agreement, it can exercise its right to an early break clause for the lease agreement of eight ATR aircraft in April 2023 at a cost of $21.2million (plus finance and maintenance costs). Doing so would allow Stobart Group to exit its pre-existing parent company guarantees, the company confirmed.
Stobart Group states that the decision not to make Stobart Air its preferred supplier for a new commercial agreement “does not alter the Group's intention to exit Stobart Air and Propius as soon as it is practicable”.
"The Group remains in positive discussions with a number of interested parties and continues to target an exit from Stobart Air before the end of the current financial year,” Warwick Brady, CEO of Stobart Group, said. "Whilst a disappointing decision by Aer Lingus, we believe that Stobart Air is a strategic and attractive asset for a potential buyer with number of options open to it in terms of continued operations beyond its current franchise agreement with Aer Lingus. It is well placed to build on eight years of reliable, customer focused connectivity between Ireland and the UK and utilise its European Air Operator Certificate to operate out of Ireland and seek further franchise or independent flying arrangements."
He adds that Stobart Air can also “leverage its valuable slot portfolio, and its position as Europe's largest and most experienced operator of ATR aircraft and enter negotiations with the new Aer Lingus franchisee given the anticipated interest in those assets".