UK infrastructure group Stobart is considering buying back regional airline Stobart Air and its leasing firm Propius from the administrators of Connect Airways, it said in a statement.
Stobart Group sold the regional airline in 2019 to Connect Airways, the owner of the collapsed regional airline Flybe.
Neither Stobart Air nor Propius are currently in administration, Stobart Group said.
“The Company confirms that it is reviewing all options in relation to the future of Stobart Air and Propius during this unprecedented time including the possibility of acquiring the businesses from the administrators,” Stobart said in a statement.
“A range of discussions are ongoing and there is no certainty that any transaction will take place. The Board of Stobart Group believes that Stobart Air and Propius have a viable future after COVID-19 and that by working with Aer Lingus as franchise partner it can place the business on a secure footing and manage the impact of guarantee obligations in a controlled manner.”
These legacy obligations Stobart referred to relate to a sale and leaseback of aircraft carried out in early 2017. They include maintenance commitments, together with certain obligations in respect of the franchise agreement with Aer Lingus and certain fuel hedge arrangements in respect of Stobart Air and cumulatively could potentially be significant.
These obligations remained with Stobart Group after the Connect Airways transaction as they were scheduled to run off over a period of time and it was not possible for these to be released, said Stobart in its statement.