Ettyl background19 Apr 2021 23:15
ESKEN, the owner of Aer Lingus Regional operator Stobart Air, has confirmed it's in advanced discussions to sell the Dublin-based carrier to Isle of Man-based Ettyl.
The Irish Independent revealed last month that Ettyl had entered the race to acquire Stobart Air.
Esken, previously Stobart Group, committed last year to having sold Stobart Air by the end of February this year. A sale has not yet been completed.
Esken said in a statement today that it’s also in talks with Ettyl to sell 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,” said Esken.
Ettyl is headed by Jason Scales, who founded the virtual airline last year. He also heads a shared office centre called The Hubb on the Isle of Man. He is listed in company documents as being the sole shareholder in Ettyl when it was founded this time last year.
It’s believed that if it was successful in its bid to buy Stobart Air, Ettyl would retain the carrier’s headquarters in Dublin and its key management team including managing director Andy Jolly.
It’s thought that Ettyl could be prepared to inject as much as €25m into Stobart Air.
It’s not known at this stage where Ettyl's financing will be sourced.
A final say on the Stobart Air purchaser will effectively rest with Aer Lingus given that the existing Aer Lingus Regional contract operated by Stobart Air does not expire until the end of 2022.
Last November, businessman Conor McCarthy’s Emerald Airlines was named the preferred bidder to operate the Aer Lingus Regional contract when the Stobart Air contract expires. Mr McCarthy also owns aircraft maintenance firm Dublin Aerospace.
It’s believed that if Ettyl is successful in its bid to buy Stobart Air that it plans to use about three aircraft from the carrier’s fleet to operate domestic routes within Britain from the summer in order to generate additional cashflow.
Stobart Air currently has a fleet of 13 turboprop ATR aircraft, but is due to the impact of the pandemic is operating a limited schedule that includes public service obligation routes to Dublin from Donegal and Kerry, as well as some services out of Belfast.
Esken has liabilities of about $100m attached to Stobart Air via a connected leasing firm called Propius.
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