Seems rather simple to me. Stobat Air picks the routes, rents, leases or buys some aircraft and crew, sets the airfares, carries all the risks of the new Southend venture and pays Flybe to use their name and to provide maybe some of the marketing.
As we have seen in the past when it comes to Southend Stobart wants total control, which could be a reason why the Cityjet deal fell through.
Why would Flybe say no to that arrangement? If it all went wrong would it actually cost Flybe much money unless Stobart pays Flybe to wet lease some aircraft and then doesn't pay the bill.