Stobart Group Limited Update on new routes at London Southend Airport (9898Q)

TIDMSTOB

RNS Number : 9898Q

Stobart Group Limited

05 December 2016

5 December 2016

Stobart Group Limited

("Stobart" or the "Group")

Update on new routes at London Southend Airport

The Group recently acquired all of the interests of Invesco Asset Management Limited in its airline business, Stobart Air, and aircraft leasing business, Propius Holdings Limited ("Propius") and announced negotiations, which are progressing, to acquire the remaining 33% interest in Propius from Aer Lingus. Following these developments, the Board of Stobart has reassessed its strategy for the Aviation Division, in particular, its options for building new passenger routes at London Southend Airport ("LSA") and furthering the development of its Aer Lingus Regional franchise.

As a result, rather than proceed with a collaboration with CityJet, the Group has taken the decision to operate flights from LSA to up to 18 new destinations through Stobart Air's existing franchise arrangement with Flybe, under which it operates a number of routes into northern Europe. The new routes are expected to start in summer 2017 and to be available for sale by the end of this month. Negotiations with CityJet that could have resulted in a change in the ownership of Stobart Air have been terminated.

Enquiries:

 
 Stobart Group Limited              c/o Redleaf Communications 
 Andrew Tinkler, Chief Executive 
  Officer 
  Mark Adams, Chief Financial 
  Officer 
 Redleaf Communications             [phone] 
 Charlie Geller                     [e-mail] 
  Sam Modlin 
 
 Influence Associates               [phone] 
 Stuart Dyble 
  James Andrew 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 05, 2016 08:10 ET (13:10 GMT)