28 Jul 2017 16:42
28 July 2017
Stobart Group Limited ("Stobart" or the "Group")
Aircraft Purchase
Stobart Group is pleased to announce that its aircraft leasing business, Propius Limited ("Propius"), has signed an agreement with a Special Purpose Company managed by GOAL German Operating Aircraft Leasing GmbH & Co. KG to purchase three Embraer E195 jet aircraft, which are currently on a lease agreement with Flybe running to H2 2018.
Propius will purchase the aircraft from GOAL Verwaltungsgesellschaft mbH & Co. Projekt Nr. 36 KG for $56.0 million before deductions of certain amounts including maintenance reserves and security deposits. The aircraft will continue to be leased to Flybe until the second half of 2018 with an estimated total lease income up to that date of $9.2 million. The consideration is being funded from the proceeds of the aircraft sale and lease back transaction which was announced on 5 April 2017.
The purchase of these aircraft will allow Stobart Group's Aviation Division to immediately enhance its asset base for a relatively low capital cost. Over the longer term, the aircraft can also be used to support the growth of Stobart Group's Dublin-based regional airline, Stobart Air, which currently operates a fleet of 17 ATR turbo prop aircraft, and aims to operate 20 aircraft in 2018.
Completion is scheduled by 31 July 2017.
Warwick Brady, Group CEO of Stobart commented "Aviation is a core part of the Group's strategy to grow the overall business. The investment into the Embraer 195 aircraft will support the growth plans in our regional airline and aircraft leasing businesses, and adds further flexibility as we continue to grow our regional airline, develop our valuable long-term franchise with Aer Lingus, support Flybe in the Isle of Man and grow passenger numbers at London Southend Airport."
Enquiries:
Redleaf Communications | +44 20 7382 4730 |
Charlie Geller | Stobart@redleafpr.com |
Elise Palmer | |
Sam Modlin |