Fight on to save Kerry Dub airline
MANAGEMENT at Kerry Airport say they are confident the airline that runs the Kerry Dublin route can overcome its current difficulties.
Like most airlines Stobart Air is struggling to cope with the fallout from the global COVID-19 crisis.
Last week it emerged that UK based Stobart Group – currently a shareholder in the airline’s struggling parent firm – is considering the takeover of Stobart Air in a move that would give the airline leeway to deal with looming liabilities linked to its aircraft leases.
It is one of the two potential outcomes for Stobart Air, which operates the Kerry Dublin route under the Aer Lingus Regional banner.
Stobart Air is also understood to be considering a court bid for examinership to provide temporary protection from its creditors as it fights for survival.
The alternative would see Stobart Group buy a 49pc stake in Stobart Air from accountancy firm EY, which is the administrator to UK-based Connect Airways Stobart Air’s troubled parent company. The remaining 51 per cent is owned by Stobart Air’s staff.
Any deal would effectively require the support of Aer Lingus
Stobart Air’s current contract with Ireland’s national carrier to operate the Aer Lingus Regional service expires in 2022.It began operating the service in 2010.
While the pair have yet to renew the deal, Stobart Group indicated that its agreement with Aer Lingus would help secure Stobart Air’s business once the Covid-19 crisis had passed.
Kerry Airport CEO John Mulhern is confident the airline can survive and said Stobart Air has the airport’s full backing.
“Kerry Airport and Stobart Air are jointly and steadfastly committed to providing Kerry and the region with the vital air connection to Dublin, said Mr Mulhern.
“All our concerns are towards the immediate health crisis including continuing that service for vital frontline staff and equipment,” he said.
“In the background the struggle to reach a positive outcome continues for us at the Airport and at Stobart Air, as it does for all businesses including those involved in transport and tourism. This unprecedented event has impacted Kerry Airport as it has Stobart Air in a profound way and one which the Airport hasn’t experienced in its fifty years,” said Mr Mulhern.
“We are unwavering in our mutual commitment to continue this vital schedule and to ensure it keeps flying to support the recovery when it happens. Stobart Air are a robust and capable team and I have no doubt that they will find the means to prevail in these difficult times. They have our full support.”
Stobart Group issued its own statement to the London Stock Exchange on Friday.
Stobart Group notes the recent press speculation stating that Stobart Group is considering the acquisition of Stobart Air from EY, the administrators of Connect Airways.
“The company confirms that it is reviewing all options in relation to the future of Stobart Air during this unprecedented time including the possibility of acquiring the businesses from the administrators,” said Stobart Groupin its 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 has 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.”