Stobart Air collapses after talks fail

REGIONAL airline Stobart Air has collapsed this weekend after rescue talks with investors fell through, putting almost 500 jobs at risk.

It operated flights between the UK and Ireland through a franchise with Aer Lingus but has flown almost no planes since March last year. Its owner, London-listed Esken, agreed a deal in April to sell Stobart Air and Carlisle Lake District Airport to start-up airline Ettyl.

But this month Ettyl raised concerns with the Isle of Man Constabulary over irregularities with paperwork supplied by one of its financial backers.

Ettyl, led by Isle of Man-based entrepreneur Jason Scales, failed to find a new cornerstone investor by Friday’s deadline.

Stobart Air is appointing liquidators and has cancelled all its flights after ending its franchise agreement with Aer Lingus with immediate effect.

It employs 480 cabin crew, pilots and ground handling staff. David Shearer, Esken’s executive chairman, said: ‘It is disappointing we have been unable to conclude the sale of Stobart Air as a going concern.’

Aer Lingus apologised for the short-notice cancellation of Stobart Air flights and is advising customers of their options for refunds or rebooking.