UK’s Stobart Group confirms talks to sell Stobart Air

Stobart Group has confirmed it is considering selling its Ireland-based production carrier Stobart Air (RE, Dublin Int’l) and that it is in talks with “a number” of interested parties. Last week, The Irish Independent newspaper said the UK-based infrastructure, aviation, and energy firm was in “advanced” talks with Irish lessor Falko Regional Aircraft and that a deal could see Stobart Air and Falko’s Irish ACMI/production carrier CityJet (WX, Dublin Int’l) being paired up. However, sources closes to the talks said the sale, which was valued at around EUR20 million euro (USD23.7 million), was contingent on Stobart renewing its Aer Lingus Regional franchise contract with Aer Lingus (EI, Dublin Int’l) ahead of its expiration in 2022. It is recalled that in May, IAG International Airlines Group boss Willie Walsh said that other carriers had expressed an interest in assuming Stobart’s role. “Our AGM statement on July 30, 2020 stated that we had commenced early discussions with potential partners around the long-term future of Stobart Air,” Stobart Group said in a stock market filing. “As part of this process, we can confirm that we are in early stage discussions with a number of parties including Falko Regional Aircraft Limited regarding the potential sale of Stobart Group’s stake in Stobart Air and Propius Leasing, and there can be no certainty that any transaction will be forthcoming or whether acceptable terms will be agreed.”