Carlisle-3
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Carlisle-3
I’m hearing from someone who isn’t normally wrong about such things that a sale of the airport is to be announced on Monday. Not long to wait to see if it’s accurate, I suppose.
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I'd be fascinated to know the background to what's gone on today. Ettyl put out a statement saying the deal was done subject to certain conditions and "as announced" by Esken to the Stock Exchange. That statement has been taken down, despite it being very publicly visible (see the other thread). There's been nothing from Esken until a few minutes ago when they've said:
It's all very strange - this isn't the normal course of how such things happen.
Statement in relation to press speculation
Esken, the aviation and energy infrastructure group, confirms that, in line with previous commitments made at the time of the Group's preliminary and interim results announcements, it is in advanced discussions with Ettyl Limited for the sale of its shareholding in Stobart Air as well as Carlisle Airport. There can be no certainty that an agreement will be reached or that the transaction will conclude as it remains subject to final contract matters and approvals. The Company will make a further announcement as and when appropriate.
Esken, the aviation and energy infrastructure group, confirms that, in line with previous commitments made at the time of the Group's preliminary and interim results announcements, it is in advanced discussions with Ettyl Limited for the sale of its shareholding in Stobart Air as well as Carlisle Airport. There can be no certainty that an agreement will be reached or that the transaction will conclude as it remains subject to final contract matters and approvals. The Company will make a further announcement as and when appropriate.
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Stobart says books a profit of £10m from the CAX sale although overall impact of disposal of all assets from the group & settling outstanding liabilities would see a max "outflow" to March`24 of £49m for Stobart.
Stobart will regroup around Southend Airport.
Stobart will regroup around Southend Airport.
Commenting on the acquisition, Jason Scales, Chief Executive Officer, Ettyl Limited, said: "We are delighted to have signed agreements for these acquisitions. In the immediate term it will be very much business as usual in respect of both Stobart Air and Carlisle Lake District Airport’s operations and our deal ensures that the great teams within those businesses are retained. We will be making further announcements over the coming weeks and months regarding our plans. Ettyl sees significant opportunities for increased regional connectivity as economies recover from the impacts caused by the pandemic and return to stability across the UK and Ireland."
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I cant help but feel this is going to be bad for Carlisle Airport in the long run.
Stobart Group were a large, profitable company with considerable experience in project management and delivery. They also had experience in running an airport through Southend. Ettyl are a startup with no assets, no revenue and no experience.
I dont see how Carlisle fits in to their plans. They wanted to launch flights from the Isle Of Man, initially as a virtual carrier, but eventually getting their own AOC. Buying Stobart Air helps them get that AOC, so that part makes sense. But buying Carlisle Airport doesnt fit. I can't help but feel Stobart Group insisted they take it off their hands as part of the deal. I suspect Ettyl will have little interest in the airport, other than keeping it ticking over.
Stobart Air will lose the Aer Lingus contract in 2022, after which the intention seems to be to develop them as a regional carrier. That market looks pretty saturated right now with Loganair and Eastern picking up most of the ex-flybe routes, and Flybe themselves planning to restart later this year. I just don't think there's going to be room for Ettyl. I suspect they will be bankrupt by 2023. And where does that leave Carlisle Airport then?
Stobart Group were a large, profitable company with considerable experience in project management and delivery. They also had experience in running an airport through Southend. Ettyl are a startup with no assets, no revenue and no experience.
I dont see how Carlisle fits in to their plans. They wanted to launch flights from the Isle Of Man, initially as a virtual carrier, but eventually getting their own AOC. Buying Stobart Air helps them get that AOC, so that part makes sense. But buying Carlisle Airport doesnt fit. I can't help but feel Stobart Group insisted they take it off their hands as part of the deal. I suspect Ettyl will have little interest in the airport, other than keeping it ticking over.
Stobart Air will lose the Aer Lingus contract in 2022, after which the intention seems to be to develop them as a regional carrier. That market looks pretty saturated right now with Loganair and Eastern picking up most of the ex-flybe routes, and Flybe themselves planning to restart later this year. I just don't think there's going to be room for Ettyl. I suspect they will be bankrupt by 2023. And where does that leave Carlisle Airport then?
Hmm - we'll see how the airport copes without Stobarts expertise. Have they fixed the windows in the 'control tower' yet? 
As I posted on the Teesside thread, Stobart regarded Carlisle as "peripheral to the main focus of our aviation business at London Southend Airport" and said it's disposal would "avoid management distraction".
As I posted on the Teesside thread, Stobart regarded Carlisle as "peripheral to the main focus of our aviation business at London Southend Airport" and said it's disposal would "avoid management distraction".
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I fear the temptation might be to start flying various routes from Carlisle. That would be a recipe for disaster so let’s hope they get some decent opportunities for their aircraft at other airports. Time will tell whether this operation succeeds or not but it is difficult to disagree with nighthawk117 on this. They need the Teesside mayor’s millions to throw at this assuming he is re-elected and he has not run out of money by then!
Can't quite see why Teesside's mayor would be interested in CAX, but I don't think Stobart will be missed. Mind you, even they realised that the ATR is too big for CAX at present.
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Sorry. I did not mean to imply he would be interested but rather the scale of the investment required will be of a similar order which basically means it won’t happen.
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If i'm reading the official press release correctly, then Carlisle was sold for £15m (plus any cash in the bank), but with an additional £30m due if they resell the airport for a profit in the firts year, £20m due if resold for a profit in the second year.
(available here: https://tools.eurolandir.com/tools/P...wpf&v=redesign)
(available here: https://tools.eurolandir.com/tools/P...wpf&v=redesign)
Opening 29th July doesn’t give too much time to sort things out before the 12th August? Grouse will be happy!
But where is the real revenue going to come from?
Not looking good I’m afraid.l
But where is the real revenue going to come from?
Not looking good I’m afraid.l
Even if we ignore grouse, announcing routes in May for a start date in July is really rather late. People in the UK have realised travel to the Med will be difficult in 2021 and many by now have already made plans. Those booking a trip in the Lake District will have already factored in road or rail as the only travel options. If Ettyl / Stobart want a Carlisle base, they should be assuming a start date with very little of the S21 tourist trade
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In recent weeks, for travel during the first week of July, I was on the Trainline website trying to check rail schedules such as London to Cambridge, Peterborough, Birmingham, Sheffield to name but a few, pretty much a waste of time, the train operators hadn't/haven't decided their schedules yet