Connect Airways is 30% owned by Stobart, alongside partners Virgin Atlantic (30%) and Cyrus Capital (40%) which together previously acquired the assets of Flybe.
The London-listed company firm noted that the consortium provided £110mln of funds to Connect Airways, and, Stobart Group has invested £45mln – as a combination of cash and the sale of Stobart Air, Stobart Group's regional airline, and its aircraft leasing business, Propius.
“The Connect Airways consortium has worked tirelessly alongside Flybe and the UK Government to look for solutions to ensure the financial viability of the airline so that consumers can continue to have confidence in flying with Flybe,” the company said in a statement.
Stobart added that following discussions it has been agreed that the government will review the application of Airline Passenger Duty (APD), and a further update is intended at the time of the government’s March budget.
The government will review regional connectivity, and, that government’s support for regional routes would further enhance the viability of UK domestic flight provision and support economic growth.
Stobart also said that the Connect Airways consortium has committed to providing Flybe further short-term funding with Stobart Group contributing up to £9m of capital, with the funds drawn down only if required.