25th Mar 2014 09:55
LONDON (Alliance News) - Stobart Group PLC said its aviation business, Stobart Air, has signed a five-year franchise agreement with Flybe Group PLC to offer new services from London Southend Airport.
Stobart Air, formerly Aer Arann, will operate new routes from London Southend Airport in partnership with Flybe. Under the terms of the agreement, two Flybe-branded aircraft will be based at the airport, with the aviation arm running six new routes to Northern Europe and Benelux countries.
Initial expectations from the firms say that the new services are expected to carry over 200,000 passengers annually in 2015, with tickets going on sale for the new routes April 3 on Flybe.com.
The five year agreement will initially see two 72 seat ATR 500/600 aircraft based at Stobart's London Southend Airport, with options to extend the franchise further in the future, said the companies, through additional aircraft and routes if required. The two planes, flying in Flybe livery, will serve six routes to Northern Europe and Benelux countries from June 5, 2014.
The latest agreement between the companies will further strengthen the growth prospects for London Southend Airport, which has built capacity to handle up to five million passengers annually. Last year the airport saw a 57.1% increase on 2012 passenger numbers to 969,950, making it the fastest growing airport in Europe, according to Airline Network News & Analysis.
"This agreement is a further step in our development of London Southend Airport and Stobart Air. Adding to the number of carriers and routes at London Southend Airport drives passenger volumes and contributes to cementing the airport as an established transport hub in the South East," said Andrew Tinkler, Chief Executive of Stobart.
"Today's news is also further evidence of our commitment to providing true regional connectivity across the UK and we look forward to unveiling a major programme of new base and route development over the coming months," said Saad Hammad, Chief Executive of Flybe.
Flybe already has experience as a franchisor, most notably with Loganair who have 17 aircraft operating in Flybe colours.
Shares in Stobart Group were trading marginally higher Tuesday morning, up 0.08% at 134.11 pence per share.
Flybe shares were trading slightly down, 0.78% lower at 127 pence per share.
By Alice Attwood; [email protected]; @AliceAtAlliance
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