So, what is the happening now with Stobart Air? According to this link:
https://www.investegate.co.uk/stobar...050705181138F/
Stobart Group's initial investment was made up through the sale of Stobart Air and its aircraft leasing business, Propius. As a result, the non-cash balance sheet impact on Stobart Group is £43.3m and the additional £7m investment made in 2020. The value of both these investments will now be written down to £nil on its balance sheet. The Group has also foregone deferred interest that it would have benefitted from in future periods. Stobart Group had not expected to receive a contribution from Connect Airways until after FY 2020.
Stobart Group have sold Stobart Air - this, along with the leasing firm, has knocked £50m out of their balance sheet.
Unlike Flybe, Stobart Air is not a wholly owned subsidiary of Connect Airways. Stobart Air's Employee Benefit Trust (EBT) controls 60% of the voting rights and Connect Airways controls 40%. As such Stobart Air's ongoing ability to trade is not directly impacted by the decision to place Flybe Limited into administration.
Stobart Air is now owned by "Stobart Air's Employee Benefit Trust" - (what is this and who controls it?) and Connect Airways (of which Stobart Group own 30%)
As a result of this news, London Southend Airport will see a short-term impact, with Flybe having planned to operate ten routes from the airport from Spring of this year. However, the long-term prospects of that airport remain compelling.
The implication here is that the new routes planned from SEN will not operate - I always thought they were basically Stobart flights (designed to show the airports potential?), merely being sold through the BE front end. Certainly, there seemed to be some tension at times between what was happening at SEN and the mainline flights.
Since BE failed, the IOM and SEN ops have remained grounded, one EMB is on the deck at EDI, and the other is now flying for EI. The EIR operation is carrying on as normal - with this operation descibed as being 'insulated' from the BE failure.
Who is in control now, and where do STK go next?