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Stobart will no longer be preferred supplier for Aer Lingus contact
StockMarketWire.com
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Aviation services group Stobart said it may lose a key contract with Irish carrier Aer Lingus.
Aer Lingus had informed the company's Stobart Air division that it was not the preferred supplier for a new commercial agreement, which would have commenced in January 2023.
Stobart Air would continue to operate the Aer Lingus franchise until that time.
Stobart said it could exercise a right to an early break clause for a lease agreement of eight ATR aircraft in April 2023 at a cost of $21.2 million, plus finance and maintenance costs.
The company, which recently fully wrote down its investment in Stobart Air, said it was still aiming to exit that business as a soon as practicable.
'The group remains in positive discussions with a number of interested parties and continues to target an exit from Stobart Air before the end of the current financial year,' chief executive Warwick Brady said.
'Whilst a disappointing decision by Aer Lingus, we believe that Stobart Air is a strategic and attractive asset for a potential buyer with number of options open to it in terms of continued operations beyond its current franchise agreement with Aer Lingus.'
Story provided by StockMarketWire.com
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