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Still plenty of us here in Tenerife......but with only 14 new cases yesterday I'm in no hurry !!!!
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Sibiu Wizz ending, going year round from Luton!
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Originally Posted by stewyb
(Post 10746035)
Sibiu Wizz ending, going year round from Luton!
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Originally Posted by tophat27dt
(Post 10746039)
We knew this 6 weeks ago.
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Originally Posted by stewyb
(Post 10746042)
ok my apologies
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Originally Posted by asdf1234
(Post 10735615)
Was only a matter of time. Very expensive business having full ATC coverage.
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The NOTAM does not say "radar approaches suspended", only that SRA's, along with primary radar, are not available.
I would expect that Radar vectored ILS (or to a visual approach) are still available during radar published hours, and operators would typically not notice any difference inside CAS. So no big deal, ASDF1234. |
Originally Posted by Red Four
(Post 10752800)
The NOTAM does not say "radar approaches suspended", only that SRA's, along with primary radar, are not available.
I would expect that Radar vectored ILS (or to a visual approach) are still available during radar published hours, and operators would typically not notice any difference inside CAS. So no big deal, ASDF1234. EGTT/QPIAU/I/NBO/A/000/999/5134N00042E005 SRA NOT AVBL The point is this reflects a reduction in ATC service which is in line with the airport's need to reduce costs. |
How do you deduce it is to "reduce costs" from the NOTAM - it could be for technical reasons, ie: no primary radar, or lack of radar maintenance due factors outside of LSA's control.
The ATC service was reduced some time ago with the afternoon closures of the airport, already mentioned in the thread. |
Originally Posted by Red Four
(Post 10752843)
How do you deduce it is to "reduce costs" from the NOTAM - it could be for technical reasons, ie: no primary radar, or lack of radar maintenance due factors outside of LSA's control.
The ATC service was reduced some time ago with the afternoon closures of the airport, already mentioned in the thread. |
High quality drone footage of SEN showing the impressively well parked EZY airframes:
https://tinyurl.com/ybfb8ehh |
Originally Posted by asdf1234
(Post 10719082)
This from the Irish Independent...Connect Airways, the holding company behind Dublin-based Stobart Air, which operates the Aer Lingus Regional service, has fallen into administration in the UK, the Irish Independent has learned.
The move is linked to the recent collapse of Flybe. UK-based Flybe was also part of Connect Airways. The administration means that accountancy firm EY now controls Connect and 49pc of Stobart Air. The other 51pc of Stobart Air is owned by its more than 400 staff. Connect Airways is 30pc-owned by the listed UK Stobart Group. Virgin Travel Group, a subsidiary of Virgin Atlantic, also has a 30pc stake, while US firm Cyrus Equity Partners owns 40pc. Yesterday, Stobart Group, whose CEO is Warwick Brady, warned investors that it’s evaluating how to manage liabilities it has to Stobart Air. But with confirmation to the Irish Independent from EY that Connect is in administration, it means Stobart Group is now on the hook for guarantees given in relation to a number of aircraft leases. A subsidiary of Stobart Group, Propius, engineered a sale and leaseback of eight ATR turborprop aircraft to German firm Goal in 2017. The aircraft are used for the Aer Lingus Regional service. Lease agreements under the deal total $15.4m a year and are for 10 years, it was reported at the time. There’s an option to terminate the agreement in 2023, although the trading update issued by Stobart Group yesterday suggests that the guarantees could be significantly more material. The current Aer Lingus Regional franchise agreement Stobart Air has with Aer Lingus ends in 2022. Propius received $62.7m from the sale of the aircraft, according to reports when the deal was done. However, it’s unclear where those proceeds ultimately ended up following the creation of Connect Airways in 2019. In a statement to the Irish Independent today, EY said:“Alan Hudson, Joanne Robinson, Simon Edel and Lucy Winterborne of EY’s Restructuring team were appointed joint administrators of Connect Airways Limited on March 10, 2020,” it said. “Owned by a consortium of companies, Connect is a holding company that was set up in January 2019 to assist with the acquisition of the airline Flybe. Connect has no day-to-day trading operations itself.” This is not great news for the owners of SEN. They have no cash available to them, no operating income due to CV, and now the administrators of Connect will be chasing them for the lease payments for the six ATRs totalling £150m over the next 10 years. The Stobart share price has tanked meaning that they have little recourse to sensible debt options and the mortgaged Eddie Stobart shares are currently worthless. The leases and the ESL mortgage add up to £200m worth of liabilities. I dont believe the airport is worth anything like the £800m quoted in the press; that now seems to have been an "accidently" leaked story to reassure investors and the Connect administrators. Airports sell for a multiple of EBITDA earnings and whilst the results are not yet out, I'd wager EBITDA is either zero or no more than £1-2m. We could be witnessing the beginning of the end of Stobart's ownership of Southend Airport. The previously undisclosed scale of the liabilities come as it's engaged in talks to acquire struggling Dublin-based Stobart Air and Propius, both of which it once owned outright. Stobart Air and Propius are now part of Connect Airways, in which Stobart Group has a 30pc stake, and which is in administration in the UK." |
The UK’s Stobart Group has sealed a deal to buy a 49pc stake – and effective control – of Dublin-based Stobart Air for between £300,000 and £400,000:
https://www.independent.ie/business/...-39151870.html |
Originally Posted by Barling Magna
(Post 10761246)
The UK’s Stobart Group has sealed a deal to buy a 49pc stake – and effective control – of Dublin-based Stobart Air for between £300,000 and £400,000:
https://www.independent.ie/business/...-39151870.html If the buy back happens they will have pushed the problem further down the line but it certainly hasn't gone away. At the time I thought the disposal of the aircraft and their leases to Connect was a genius move. I'm sure Stobart could not have envisaged then that they would end up having to pay money to reacquire the problem! |
The other 51pc of Stobart Air is still owned by its staff. |
Originally Posted by SWBKCB
(Post 10761393)
So how does this work - last time I checked, 51% was greater than 49?
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Originally Posted by SWBKCB
(Post 10761393)
So how does this work - last time I checked, 51% was greater than 49?
Otherwise the article confirms the cost of the aircraft leases and the term of the agreement with the national carrier. This places a huge finamcial burden on the Group. "Many observers believed that Stobart Air, which flies regional services for Aer Lingus, would take the same step and seek to have an examiner appointed at some point. That airline’s situation is more complicated than that of Cityjet. UK transport business Stobart Group bought it from examinership in 2010 when it was called Aer Arann, renaming it several years later. Stobart Group sold the airline early last year to Connect Airways, which the transport group established along with Richard Branson’s Virgin and other investors. Connect was set up to rescue Flybe, a British regional airline, and help reposition Stobart Group as an aviation business. However, Flybe and Connect are now in administration, a corporate rescue system used in the UK, where the companies are registered. Stobart Group is reportedly buying 49 per cent of Stobart Air back in a move that could give it control of the airline, which is based in the Republic, and therefore not part of either administration process. This is all very well, but it doesn’t really solve several problems. Stobart Air leases its aircraft for about €14 million a year, but is now earning little revenue from flying. Stobart Group guarantees those lease payments along with other liabilities, which means that it has to pay creditors should the airline be unable to do so. The bill for this could threaten the transport business’s own future. At the same time, Stobart Air will have to rely on support from its biggest customer, Aer Lingus. The contract between the pair is due for renewal by 2022. Just how Stobart Group’s purchase of a stake in the airline answers any of these questions is not clear. Either way, Stobart Air is facing into a fair degree of turbulence." |
I really don’t get why people continue to call Stobart Group a transport business when it is classed as a infrastructure and support business.
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I suppose it gets wrongly connected with more recognisable trucking name of Eddie.
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Where has the cash come from?
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Originally Posted by rowly6339
(Post 10762611)
I really don’t get why people continue to call Stobart Group a transport business when it is classed as a infrastructure and support business.
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Originally Posted by Buster the Bear
(Post 10763133)
Where has the cash come from?
Buying back the aircraft leasing business and Stobart Air is reported to be costing well below £1m. But with it comes annual aircraft leasing costs of £14m. So the headroom in the credit facility is now spoken for this year. Adding to their woes is the performance of (or lack thereof) the Eddie Stobart shares. The airport owners have a large investment still in the trucking business and mortgaged their shares in it to raise circa £50m in cash, which has all been spent. In November they valued the shares at 64p each. They are in fact worth 8p each putting a huge £24.5m dent in the Stobart Group balance sheet. It's time for a White Knight. There are 2 current shareholders who could play a pivotal role in digging the airport owners out of their debt hole. Tosca Fund has slowly been increasing their shareholding to become the largest shareholder and they now own nearly 19% of the company. They invest in regional property and if they see a future for the airport they might want to extend a helping hand during these troubled times. The other less likely saviour is Cyrus Capital Partners who funded the Connect Airways disaster and bought a sizeable minority chunk of Stobart Group. The next 6 months will be very interesting for the owners of Southend Airport. |
Whilst revenue at SEN is obviously well down it is not zero. Revenue is being earned from landing and parking fees for ASL and JOTA and for the storage of aircraft.
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Originally Posted by Barling Magna
(Post 10764038)
Whilst revenue at SEN is obviously well down it is not zero. Revenue is being earned from landing and parking fees for ASL and JOTA and for the storage of aircraft.
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Ah, well had you said effectively zero I wouldn't have replied. Thanks for clarifying. Nice to have some accountancy speak though.
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Originally Posted by Barling Magna
(Post 10764303)
Ah, well had you said effectively zero I wouldn't have replied. Thanks for clarifying. Nice to have some accountancy speak though.
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Indeed so.
"The Board has concluded that the best course of action financially for the Company and its shareholders is for it to buy back Stobart Air and Propius. This action will give Stobart Group effective control over the pre-existing obligations it has in respect of those businesses. The intention is that Stobart Group will continue its current positive dialogue with Aer Lingus to conclude a long-term franchise extension and ensure that the businesses are put on a sound financial footing. Stobart Group's Aviation Strategy has not changed as a result of this transaction and the Company will work with Aer Lingus to identify a new financial partner to support the business for the future with Stobart Group exiting its involvement in a controlled way at the appropriate time. Terms of the Transaction The consideration for the Transaction is a payment of up to GBP8.55 million on the following basis: -- An initial consideration of GBP300,000 payable in cash at completion; -- A deferred consideration of GBP2 million to be paid no later than 15 December 2020. -- A contingent deferred consideration up to a maximum of GBP6.25 million based on the equity value achieved (after disposal costs) on a realisation of value in respect of one or both of the businesses by Stobart Group prior to 31 December 2023" |
[QUOTE=Barling Magna;10764881]Indeed so.
If I might just add the following from the report to the Stock Exchange which is vitally important in understanding the cash drain on the Group. "Stobart Group expects to fund the operations of Stobart Air and Propius over the period through to achieving positive cash flow. The businesses have actively sought to reduce their cash requirements during the COVID-19 period and Stobart Group expects to fund in the order of €25 million (£21.88 million) over the next 12 months, including the lease payments referred to below." |
Ryanair seem to have suspended sales of flights from Southend to Bergamo, Brest and Rodez. All other routes appear to remain on sale. One might conclude these routes are being cancelled
Anyone able to confirm ? |
This may help:https://www.routesonline.com/news/38...as-of-16may20/
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Chance to support a good cause and one lucky person will get to visit the tower.
https://www.echo-news.co.uk/news/184...-empty-runway/ |
One of the Amazon Madrid rotations (1737/8) has recently been switched to Barcelona
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Name change coming
The Stobart Group have sold the right to use the name Stobart back to Eddie Stobart Limited. Going forward this will have zero impact on the airport, other than a rebranding of the ground support equipment, but will require the newly acquired airline to change its name. I wonder if they will revert to Aer Arran?
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Originally Posted by asdf1234
(Post 10788517)
The Stobart Group have sold the right to use the name Stobart back to Eddie Stobart Limited. Going forward this will have zero impact on the airport, other than a rebranding of the ground support equipment, but will require the newly acquired airline to change its name. I wonder if they will revert to Aer Arran?
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£10 million will come in handy |
Originally Posted by SWBKCB
(Post 10788606)
£10M now as opposed to £3M a year until 2029?
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Originally Posted by SWBKCB
(Post 10788606)
£10M now as opposed to £3M a year until 2029?
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For what it’s worth the CAA stats are out for April and show SEN handled 141 pax. 94 for Bucharest (assume most outbound) and 47 for Derry (average 3.36 pax per flight).
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Originally Posted by AirportPlanner1
(Post 10800725)
For what it’s worth the CAA stats are out for April and show SEN handled 141 pax. 94 for Bucharest (assume most outbound) and 47 for Derry (average 3.36 pax per flight).
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6 LDY rotations, last from SEN on 9th April, so average 3.9 per flight, not that it is of consequence.
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