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Stobart Buys Three Embraer E195 Jet Aircraft On Lease To Flybe

[ 28 Jul 2017 17:17 ]

LONDON (Alliance News) - Stobart Group Ltd on Friday said its aircraft leasing business, Propius Ltd, has signed an agreement with a special purpose company managed by GOAL German Operating Aircraft Leasing GmbH & Co KG to purchase three Embraer E195 jet aircraft.

The aircraft are currently on a lease agreement with European regional airline Flybe PLC, running to the second half of 2018.

Propius will purchase the aircraft from GOAL for USD56.0 million before deductions of certain amounts including maintenance reserves and security deposits.

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 USD9.2 million.

The consideration is being funded from the proceeds of Stobart's aircraft sale and lease back transaction in April.

Stobart said the purchase will allow its 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'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.

"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," Chief Executive Warwick Brady said.

Shares in Stobart closed down 0.04% at 274.00 pence on Friday.

By Karolina Kaminska; karolinakaminska@alliancenews.com; @KarolinaAllNews

Copyright 2017 Alliance News Limited. All Rights Reserved.


Stobart Buys Three Embraer E195 Jet Aircraft On Lease To Flybe - Alliance News

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