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Emerald Airlines

Old 14th Nov 2020, 10:55
  #21 (permalink)  
 
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This is aviation. I'm not sure making sense is a prerequisite!! :-)
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Old 14th Nov 2020, 11:48
  #22 (permalink)  
 
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I don't think it would make any sense, to be honest.

Stobart Air seems to have very significant liabilities - underpinned by Stobart Group which is why the Group bought it back from the administrators of Flybe as it was cheaper for them than the administrators calling in those guarantees. If you are now looking at starting a new airline to fly for Aer Lingus, you have a broad choice between acquiring Stobart and taking on those liabilities plus whatever debt has been built up through the Covid-19 survival efforts or starting from scratch with a clean balance sheet and only whatever debt you need by way of start-up financing.
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Old 14th Nov 2020, 13:19
  #23 (permalink)  
 
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With the Aer Lingus franchise securing start-up finance would be much easier. The devil will be in the detail though. Can Stobart continue to use the Aer Lingus brand, would Emerald take over the new Stobart routes at BHD and PSO routes which were awarded to Stobart?
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Old 14th Nov 2020, 16:07
  #24 (permalink)  
 
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Stobart hold the licences for the two PSOs from Dublin. Equally, with the investment they've made into BHD in such uncertain times, I can't see why they couldn't keep those pieces running. Hence, no reason why EI could not have more than one franchisee?
There still is a long way to go between now and the end of the contract. Has to be a mechanism to ensure consistent service and reliability..
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Old 14th Nov 2020, 17:34
  #25 (permalink)  
 
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An Irish solution to an Irish problem as I think Lloyd George said
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Old 14th Nov 2020, 20:25
  #26 (permalink)  
 
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Jethro is reporting a 2023 start date...at least he has given himself time to prepare!!
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Old 16th Nov 2020, 11:53
  #27 (permalink)  
 
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EI-BUD

It depends on the wording of the franchise agreement, but I'd imagine its an exclusive agreement, so you can't have more than one. Stobart therefore cannot operate under the Aer Lingus name, and must use their own (or licence another brand)
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Old 16th Nov 2020, 12:11
  #28 (permalink)  
 
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I’m not sure why it would be exclusive. BA had multiple franchisees, as do many other airlines. There’s an argument, from the major’s point of view, that it’s sensible not to put all your eggs in one basket.
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Old 16th Nov 2020, 20:45
  #29 (permalink)  
 
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nighthawk117

Of course it depends on the wording.
'so you can't have more than one' - that is a bit of a stretched assumption.
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Old 17th Nov 2020, 09:26
  #30 (permalink)  
 
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EI-BUD

Not really, given all the reports that "stobart have lost the franchise agreement". Otherwise it would be worded "stobart have lost the main part of the agreement, but still might pick up a few routes".

And BA is not exactly a good example - their franchise partners operate in completely different markets.

Aer Lingus have never previously had multiple franchise partners, so what makes you think they're suddenly going to start having multiple partners now?
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Old 11th May 2021, 13:32
  #31 (permalink)  
 
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Apparently Aer Lingus and Emerald have signed a memorandum of understanding and a binding contract is expected to be signed soon.

Conor McCarthy is quoted as saying “Our first two ATR72 aircraft are due for delivery later this summer, at which time we aim to have our respective approvals and operating licences in place.”

Those ATRs are being leased from Chorus Aviation Capital.
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Old 11th May 2021, 15:18
  #32 (permalink)  
 
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Looking like the first two will be from the three that Stobart returned last year that were allegedly destined for Loganair. Both EI-GPO/GPP have already arrived at Exeter for lease transition checks.
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Old 11th May 2021, 17:04
  #33 (permalink)  
 
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So do we think that Emerald will hire all of the cabin and flight deck crew off Stobart, when Emerald take over.
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Old 11th May 2021, 17:12
  #34 (permalink)  
 
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Has it been definitely stated that Emerald will take over the BHD/ORK/SNN ops as part of the EI franchise ? Do the routes belong to EI or Stobart ?, if the latter, I’d say the new owners of Stobart may have other ideas.
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Old 11th May 2021, 17:18
  #35 (permalink)  
 
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This looks like starting Earlier than 2023, notice that the Stobart ATRs are starting to be painted in the summer. Interesting to see if Emerald cut back at one of the bases.
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Old 11th May 2021, 19:39
  #36 (permalink)  
 
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They all have uk registrations under the EI regs and the Irish flag has been removed so whatever is happening must be happening fairly soon one would hope
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Old 11th May 2021, 21:14
  #37 (permalink)  
 
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A further ATR is due at Exeter tomorrow for return to lessor work. VH-VPJ formerly with Virgin Australia. Perhaps another candidate for Emerald?
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Old 4th Aug 2021, 11:50
  #38 (permalink)  
 
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Aer Lingus confirm 10 year deal with Emerald but not starting until 1 Jan 2023

https://www.rte.ie/news/business/202...ional-flights/

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Old 4th Aug 2021, 11:57
  #39 (permalink)  
 
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Aer Lingus said that although the contract is not due to commence for 18 months, it continues to work closely with Emerald Airlines to evaluate options with respect to an earlier contract start date in light of Stobart Air recently ceasing operations.
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Old 4th Aug 2021, 14:00
  #40 (permalink)  
 
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Not sure why there would be such a delay to 2023- surely that type of essentially re-hashed operation could be up and running within 6 months or even with 2021?
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