(Reuters) - Infrastructure group Stobart (L:STOB) is considering buying back regional airline Stobart Air and its leasing firm Propius from the administrators of Connect Airways, it said on Thursday.
Stobart Group sold the regional airline in 2019 to Connect Airways, the owner of the collapsed regional airline Flybe that became one of the first big corporate casualties of the coronavirus outbreak.
Neither Stobart Air nor Propius are currently in administration, Stobart Group said.
The news was first reported https://www.independent.ie/business/irish/stobart-group-mulls-swoop-for-dublin-based-stobart-air-39131336.html by the Irish Independent, which said Stobart's move would prevent the immediate crystalisation of significant liabilities Stobart Air has that are attached to the airline's aircraft leases.
Stobart Group said "Stobart Air and Propius have a viable future after COVID-19 and that by working with Aer Lingus as franchise partner it can place the business on a secure footing and manage the impact of guarantee obligations in a controlled manner."
Connect Airways was formed by Stobart Group, Virgin Atlantic and investment adviser Cyrus Capital.