18th Aug 2020 10:08
(Alliance News) - Stobart Group Ltd on Tuesday warned of possible redundancies following the announcement by easyJet PLC that it will close its bases in the London Southend and London Stansted airports.
The Guernsey-registered aviation and energy infrastructure group said Stobart Aviation Services will be affected by the closures as it provides check-in and baggage handling services to easyJet at both airports. It also is the owner and operator of London Southend airport.
easyJet will stop operations based from London Southend Airport on August 31, after which flights will be cancelled from September 1. easyJet had based four aircraft there, serving 21 destinations.
Stobart said: "As a result of the decision to close these airport bases, Stobart Aviation Services will enter a consultation process with the teams affected by this as part of a wider cost management programme within the Aviation division."
Stobart remains confident in its balance sheet, liquidity position and medium-term opportunities for its London airport asset.
Stobart Chief Executive Warwick Brady said: "We are disappointed that easyJet has taken the decision to close its airport bases serving the North and East of London. However, we expect that this decision will create significant opportunity for other airlines looking to take on established, popular and profitable routes."
He added: "Though the 2020 summer and winter periods will continue to be challenging, we expect passenger demand for short haul leisure flying to increase through 2021, and we are in active dialogue with airlines regarding their interest in capitalising on these well-established, profitable routes."
Stobart shares were down 3.0% at 29.00 pence each on Tuesday morning in London. easyJet shares were up 3.0% at 561.00p.
By Greg Roxburgh; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
STOB.LeasyJet