Irish regional airline Stobart Air ceases trading

DUBLIN, June 12 (Reuters) - Irish airline Stobart Air, which
provided regional services in Ireland and Britain under the Aer
Lingus Regional brand, has ceased trading and is in the process
of appointing a liquidator, its owner said on Saturday.

Aer Lingus said in a statement that all Aer Lingus Regional
flights operated by Stobart Air, including routes to Edinburgh,
Manchester and Belfast, had been cancelled.

Before the COVID-19 pandemic grounded much of its fleet of
13 turboprop planes, Stobart operated around 900 flights per
week across 30 routes in Ireland, the United Kingdom and Western
Europe, most of them under the Aer Lingus Regional brand,
according to its web site.

It employed 480 people.

"The Board of SA (Stobart Air) has terminated its franchise
agreement with Aer Lingus, will cease trading and is taking
steps to appoint a liquidator," Stobart's owner, British
aviation and energy infrastructure group Esken, said in a
statement.

Esken was known as Stobart Group before it changed its name
earlier this year.

Esken in April said a proposed sale of Stobart Air to Isle
of Man group Ettyl Ltd had been delayed due to financing issues.
On Saturday, Esken said Ettyl had been unable to conclude the
transaction.

Esken said a decision by Aer Lingus to award preferred
bidder status to another party for the Aer Lingus Regional
franchise agreement beyond its expiry at the end of 2022 had
significantly hampered efforts to secure a future for the
business.

Aer Lingus last year named start up airline Emerald Airlines
as its preferred bidder for the franchise.

Esken said it would sublease eight ATR aircraft operated by
Stobart Air until the leases lapse in 2023.

Aer Lingus is owned by International Airlines Group
, which also owns British Airways and Iberia.
(Reporting by Conor Humphries
Editing by David Holmes)