In todays local press
Plymouth airline owner expects to make 'significant loss' from sale of Air Southwest
THE owner of Plymouth airline Air Southwest expects to make a "significant loss" from its sale.
Sutton Harbour Holdings (SHH) put the loss-making airline on the market in May.
Following the firm's annual meeting, today, company chairman Michael Knight said: "It is now expected a significant loss will be incurred on disposal of Air Southwest.
"This loss is disappointing but the board believes it is in the long-term interests of the company to focus on our strengths and to eliminate the volatility inherent in airline operations."
The airline made a £3.945million loss in the past year after being hit by a combination of bad weather, the effects of the volcanic ash cloud and the recession.
The firm today said it has been working with potential purchasers.
Mr Knight said: "Our objectives include the continued employment of the staff and maintenance of operations at Plymouth City Airport.
"Negotiations continue and we will make a further announcement as soon as is possible."
In May, The Herald revealed other airline operators and private investors were thought to be circling with the firm confident a deal will be secured.
Meanwhile, Mr Knight today said SHH's transport sector continued to be hampered by difficult economic, as well as unforeseen environmental, factors causing a loss of passengers.
He said: "The period of Icelandic volcanic ash disruption in April was a set-back and in addition to the immediate losses it has had the effect of deterring some potential passengers.
But he stressed trading from other operations is in line with expectations, that the marine sector has made a strong start to the year, and SHH's investment property portfolio was performing well and provides "quality earnings".
Mr Knight said regeneration projects should continue to provide future profits.
"Although projects are being progressed only at a pace which balances resource and risk, the group expects to sell the option on the third tranche of airport land towards the end of the year," he said.
SHH, which has a 150-year lease of the airport site, sold 22 acres of the land for £11.8million to be turned into housing in a phased development over three years.
"In addition, negotiations are continuing positively with the BBC to provide new accommodation at East Quays and further information will be made available when these have been concluded," Mr Knight said.
He said further phases of schemes in Exeter, Portland and Swansea are also being prepared to take effect "as economic circumstances permit".
He said: "We are positioning the company to take advantage of property and marine related opportunities in other localities.
"The group expects to clear the way on a number of important issues over the summer period and to progress with the pipeline of regeneration projects.
"This will enable management to focus attention on new opportunities aligned with our core strengths of regeneration and partnering skills."