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500 jobs lost after Stobart Air and Carlisle Airport deal collapses

500 jobs lost after Stobart Air and Carlisle Airport deal collapses

The deal for the sale of Stobart Air and Carlisle Lake District Airport by Esken Ltd., to Isle of Man-based Ettyl Ltd., collapsed, reportedly leading to the loss of almost 500 jobs, cite sources close to the matter.

For the record, Esken Ltd had signed an agreement with Ettyl Ltd in the month of April 2021. It was expected that the deal would be completed in the month of May. At the time, Esken had stated that the agreement would permit its management to concentrates on the crucial operations of Stobart Energy and London Southend Airport, in addition to the aviation services enterprise.

According to David Shearer, the Executive Chairman of Esken, it is disappointing for all shareholders that the company has been unable to conclude the sale of Stobart Air as a going concern in spite of the tireless efforts of the company’s executive employees, the team of advisors who has backed them, and the management team of the airline.

Shearer further added that he is acutely aware of the effect that this will be having on the customers, staff, and the enterprises associated with the airline. However, the continuing effect of the pandemic in terms of limited travel and lockdown has prevented the company from achieving a better outcome.

Supported by private investors, Ettyl Ltd., is an Isle of Man-headquartered firm. The company is registered in London and was incorporated in May 2020. However, Esken, in a statement issued to the LSE at the end of May, first raised doubts regarding whether the agreement would be completed.

In a new statement, the enterprise stated that, on 28th May 2021, Ettyl advised that its actual funding package for supporting the deal was no longer available and that the company was in discussions on options related to alternative funding.

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.