Stobart spends £42m on aircraft

Opportunities identified in aviation division

Cumbria-based Stobart Group’s aircraft leasing business Propius is to buy three Embraer E195 jet aircraft on a lease agreement with airline Flybe for £42m.

Propius will purchase the aircraft from German company GOAL Verwaltungsgesellschaft mbH & Co.

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 £7m.

Stobart says says the deal 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.

Stobart chief executive Warwick Brady said: “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.”

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