Stobart and Aer Arann reach o
11th October 2010
Stobart Group reaches conditional five year operating agreement with Aer Arann at Southend Airport
Stobart Group has agreed terms for a five year operating agreement with Aer Arann to use London Southend Airport, for flights starting in March 2011, with volumes expected to grow to 300,000 passengers annually. As part of the overall investment agreement with others, Stobart Group will invest €2.5 million to incentivise and market Aer Arann's operation from London Southend Airport. The offer remains conditional on certain terms being satisfied including Aer Arann successfully exiting Examinership. The company and the Examiner will be working to eliminate these conditions and it is hoped that the company could exit Examinership before the end of the month.
The association with Aer Arann, which is a household name in Ireland, would further strengthen and develop Stobart's position in the Irish market which has grown from no presence to a €40m business in two years. Stobart Group is receiving a growing number of enquiries from customers for airfreight services and alignment with Aer Arann offers potential to explore opportunities in the future.
"This is a pragmatic deal that has multiple advantages for the Group. Firstly it would guarantee business and volume that will underpin acceleration of our development plans for London Southend Airport. Secondly it will further develop the Stobart business and brand in Ireland. Thirdly the alignment with Aer Arann provides future opportunities for the growing demand for airfreight from our customers." Commented Andrew Tinkler CEO Stobart Group. "Although the agreement provides Stobart with a small stake in the form of a convertible preference share in Aer Arann, it does not signal that we are getting into the airline business and we would not be involved in the day-to-day management of Aer Arann - they have a skilled management team in place to do that led by Padraig O'Ceidigh."
ENDS
About Stobart Group
Stobart Group is listed on the London Stock Exchange in the FTSE250 (LSE:STOB),
and is the UK leader in multimodal transport and logistics solutions. It is one of the most recognised and strongest brands in Britain, best known for its iconic Eddie Stobart trucks. Today, Eddie Stobart is the name behind a road haulage fleet totalling 1,850 trucks and over six million square feet of cutting-edge warehousing facilities. By size, Eddie Stobart has the best vehicle utilisation in the industry, helping to maximise efficiency and environmental benefits.
The Group has pioneered several environmental initiatives in the industry such as modal shift from road to rail with the Stobart Rail low-carbon service that brings fresh produce into the UK from southern Europe via the Channel Tunnel. Stobart is also innovating with the creation of Stobart Biomass Products Limited, a new venture with A.W. Jenkinson - the UK leader in biomass fuels. This positions the Group at the heart of the fast growing and transport intensive market for renewable energy.
Stobart Group employs over 5,000 people in 40 different locations, offering multimodal logistics solutions to customers across Europe through the Stobart Rail, Stobart Ports, Stobart Air and Eddie Stobart Divisions. The Group is fast developing these divisions into industry leaders, and by developing assets such as London Southend Airport, Carlisle Lake District Airport and Mersey Multimodal Gateway in Widnes, is creating new business for the Group's core transport and logistics operations.
Further information:
Stuart Dyble e: stuart@influenceltd.com t: 07599 835 700
James Andrew e: james@influenceltd.com t: 07772 534 985
This information is provided by RNS
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