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17-Jan-2020 1:10 AM

Stobart commits a further GBP9m as part of Flybe rescue deal

Stobart Group announced (16-Jan-2020) plans to contribute GBP9 million in financial support for Connect Airways as part of a rescue deal for Flybe. Connect Airways is made up of a consortium comprising Cyrus CapitalVirgin Atlantic and Stobart that announced plans to acquire the assets of Flybe in Jan-2019, however merger control clearance from the European Commission was not received until 05-Jul-2019. Stobart Group commented: "The Connect Airways consortium has worked tirelessly alongside Flybe and the UK Government to look for solutions to ensure the financial viability of the airline so that consumers can continue to have confidence in flying with Flybe... The delay in receiving control, coupled with a number of other factors including legacy issues, impacted on the delivery of the consortium's turnaround plan for Flybe. This resulted in a situation in which a further injection of funds is required to ensure continued flying". Stobart Group has invested GBP45 million in Connect Airways through a combination of cash and the sale of Stobart Air and its aircraft leasing business Propius. [more - original PR]

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