Originally Posted by
flight_mode
Warwick Brady’s comments are being misinterpreted here. Stobart Group’s stated aim is to build value and make strategic asset disposals to pay the dividend. It should come as no surprise that they would want to dispose of the airline – and the airport – one day. When that day will be is the bigger question.
I think we all understand the business model. A company exists to return value to shareholders and the sale of the airport will hopefully be the shareholder's biggest return. My concern is that whilst the airport is loss-making it relies upon both the disposal of an ever dwindling pot of assets and the other Stobart divisions supporting the Aviation division.
The asset pot is near exhausted and will last another 24 months, maybe longer, and is to be used to fund the dividend. The combined operating divisions made a loss this year with Aviation sucking any profit out of the other businesses.
Unless the jewel in the crown (LSA) starts to turn a profit very quickly the whole project is in jeopardy. I can't see 2.5m pax by the end of this year. I certainly can't see 5m pax by the end of 2022.
I know everyone is working hard at Stobart to make the dream a reality but something is stopping the airlines from turning up. I have my view on what that something is but I'll open the floor to others to provide their insight.