Southend Airport set for funding boost following Stobart sale

Southend Airport

Southend Airport

First published in Southend by , Senior reporter

NEW routes and airline operators could be coming to Southend Airport.

That’s the aim of owner the Stobart Group, which has sold a 51 per cent stake in the famous trucking business, Eddie Stobart, to clear debts and focus on other parts of the empire.

Stobart will get £195.6million for the Eddie Stobart operation, as well shares worth £44.1million in the new venture, as it is sold to a management company.

A statement pledged the money would enable it to focus on other parts of the business, including passenger growth at the airport.

It said it will be looking to “secure new airline operators serving London and the South East” and use Aer Lingus owner Aer Arann to bring new destinations to the airport.

There was aviation industry speculation earlier this year that the airport’s 15 routes could be extended with Copenhagen, in Denmark, Frankfurt, in Germany, Glasgow, Madrid, in Spain, and Zurich, in Switzerland, the likely new destinations.

David Burch, director of policy at the Essex Chambers of Commerce, said: “If the decision releases further investment in the airport, that can only be good news.

“They’ve already created several hundred jobs there and revitalised it, and if this brings in more investment, it is certainly to be welcomed.”

Stobart chairman Iain Ferguson said the deal was an important step in generating value for its shareholders.

He said: “These proposals allow us to repay debt, make a return of capital to shareholders, stimulate the growth of our biomass business and bring the group’s businesses together in a coherent, medium-term value creation plan.”

The company’s share price fell by 7.75p on the day of the announcement.

Comments (11)

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12:20pm Sun 9 Mar 14

paintlad3 says...

good investment if you get it right!
good investment if you get it right! paintlad3
  • Score: 13

2:14pm Sun 9 Mar 14

jayman says...

Money pit....?
Money pit....? jayman
  • Score: -34

3:56pm Sun 9 Mar 14

carnmountyouknowitmakessense says...

YEAH F A N T A S T I S T I C Bring 'Em on Down
YEAH F A N T A S T I S T I C Bring 'Em on Down carnmountyouknowitmakessense
  • Score: 10

6:42pm Sun 9 Mar 14

Joe Clark says...

jayman wrote:
Money pit....?
Big Yawn!
[quote][p][bold]jayman[/bold] wrote: Money pit....?[/p][/quote]Big Yawn! Joe Clark
  • Score: 9

6:52pm Sun 9 Mar 14

maxell says...

I wonder If they are shifting the debt on to southend airport, the headline reads that stobart has sold half the company, but who is the buyer yes you got it stobart from an over seas comapany in jersey , problem is they lost 4.3 million 2012 and 5,5 million 2013 , they boasted that they nearly hit I million passengers last year so that means that each passenger cost stobart £5.00 thats hardly a profit making copany if they are investing in to the airport they will need proffit not deficit for the aiport to survive there is an awful lot stacked against this airport sucess I wonder if southend will buy it back for the value they placed on it of 1 million, with tinker and willy up in court soon and the investors looking to recover 11 mil also industrial action from the lorry drivers , stobart has just recently stumped up 30,000 euros for driver compemsation. easy jet has shares in stobart cant think why. maybe they are tajing there share up front with free parking the future is not so bright with the orange flyers, Oh and not forgeting easy jet are replacing the fleet to ones that cant fly properly from southend.
I wonder If they are shifting the debt on to southend airport, the headline reads that stobart has sold half the company, but who is the buyer yes you got it stobart from an over seas comapany in jersey , problem is they lost 4.3 million 2012 and 5,5 million 2013 , they boasted that they nearly hit I million passengers last year so that means that each passenger cost stobart £5.00 thats hardly a profit making copany if they are investing in to the airport they will need proffit not deficit for the aiport to survive there is an awful lot stacked against this airport sucess I wonder if southend will buy it back for the value they placed on it of 1 million, with tinker and willy up in court soon and the investors looking to recover 11 mil also industrial action from the lorry drivers , stobart has just recently stumped up 30,000 euros for driver compemsation. easy jet has shares in stobart cant think why. maybe they are tajing there share up front with free parking the future is not so bright with the orange flyers, Oh and not forgeting easy jet are replacing the fleet to ones that cant fly properly from southend. maxell
  • Score: -23

9:04pm Sun 9 Mar 14

Devils Advocate says...

Perhaps he could get Ryan air interested. I have my fare in my purse ready for the first flight to Knock. Come on Eddie, fly in the face of the critics and get Southend up to no.1 in the popularity charts! Even the moan-a-lots must realise how good the airport is for Southend.
Perhaps he could get Ryan air interested. I have my fare in my purse ready for the first flight to Knock. Come on Eddie, fly in the face of the critics and get Southend up to no.1 in the popularity charts! Even the moan-a-lots must realise how good the airport is for Southend. Devils Advocate
  • Score: 15

9:22am Mon 10 Mar 14

rayleighrunner says...

Personally I do not want to see this airport expanded much beyond what is currently is. It currently serves the Essex community well. It manages its passenger numbers well and the infrastructure around it is adequate and good. A few more destinations would be nice, with a couple of new airlines being welcomed and a range of destinations for passengers i.e. summer sun, winter ski and weekend breaks, I believe it could be a good addition to South Essex.
Personally I do not want to see this airport expanded much beyond what is currently is. It currently serves the Essex community well. It manages its passenger numbers well and the infrastructure around it is adequate and good. A few more destinations would be nice, with a couple of new airlines being welcomed and a range of destinations for passengers i.e. summer sun, winter ski and weekend breaks, I believe it could be a good addition to South Essex. rayleighrunner
  • Score: 1

10:01am Mon 10 Mar 14

mesaka says...

Sign me up for regular flights back and forward to Frankfurt. It would be so much better than having to travel to Heathrow or City airports.
Sign me up for regular flights back and forward to Frankfurt. It would be so much better than having to travel to Heathrow or City airports. mesaka
  • Score: 9

5:16pm Mon 10 Mar 14

jolllyboy says...

City airport does not have night flights. Many european airports are now changing to no night flights due to new rules. Play with management investors and you dice dangerously in business. Personaly I dont care a fig if Stobarts make a go of it or not since looking down southend high street (unfortunately had to go there) the number of empty shops is increasing not decreasing so stobart investment not working there !
What they have to do is improve the A127 if they want people to come to southend - and when(if) the football stadium gets going the road will be a no go between rayleigh and sutton road.Visitors will only try it once.
City airport does not have night flights. Many european airports are now changing to no night flights due to new rules. Play with management investors and you dice dangerously in business. Personaly I dont care a fig if Stobarts make a go of it or not since looking down southend high street (unfortunately had to go there) the number of empty shops is increasing not decreasing so stobart investment not working there ! What they have to do is improve the A127 if they want people to come to southend - and when(if) the football stadium gets going the road will be a no go between rayleigh and sutton road.Visitors will only try it once. jolllyboy
  • Score: -8

8:13pm Mon 10 Mar 14

Danshrimp says...

rayleighrunner wrote:
Personally I do not want to see this airport expanded much beyond what is currently is. It currently serves the Essex community well. It manages its passenger numbers well and the infrastructure around it is adequate and good. A few more destinations would be nice, with a couple of new airlines being welcomed and a range of destinations for passengers i.e. summer sun, winter ski and weekend breaks, I believe it could be a good addition to South Essex.
Well it's a good job it's not going to be expanded any more then. They've just finished the terminal expansion so now they're adding a few new destinations - it's good news all round.
[quote][p][bold]rayleighrunner[/bold] wrote: Personally I do not want to see this airport expanded much beyond what is currently is. It currently serves the Essex community well. It manages its passenger numbers well and the infrastructure around it is adequate and good. A few more destinations would be nice, with a couple of new airlines being welcomed and a range of destinations for passengers i.e. summer sun, winter ski and weekend breaks, I believe it could be a good addition to South Essex.[/p][/quote]Well it's a good job it's not going to be expanded any more then. They've just finished the terminal expansion so now they're adding a few new destinations - it's good news all round. Danshrimp
  • Score: 4

8:16pm Mon 10 Mar 14

Danshrimp says...

jolllyboy wrote:
City airport does not have night flights. Many european airports are now changing to no night flights due to new rules. Play with management investors and you dice dangerously in business. Personaly I dont care a fig if Stobarts make a go of it or not since looking down southend high street (unfortunately had to go there) the number of empty shops is increasing not decreasing so stobart investment not working there !
What they have to do is improve the A127 if they want people to come to southend - and when(if) the football stadium gets going the road will be a no go between rayleigh and sutton road.Visitors will only try it once.
They're running an airport not rebuilding the town... you just sound desperate to moan about something...
[quote][p][bold]jolllyboy[/bold] wrote: City airport does not have night flights. Many european airports are now changing to no night flights due to new rules. Play with management investors and you dice dangerously in business. Personaly I dont care a fig if Stobarts make a go of it or not since looking down southend high street (unfortunately had to go there) the number of empty shops is increasing not decreasing so stobart investment not working there ! What they have to do is improve the A127 if they want people to come to southend - and when(if) the football stadium gets going the road will be a no go between rayleigh and sutton road.Visitors will only try it once.[/p][/quote]They're running an airport not rebuilding the town... you just sound desperate to moan about something... Danshrimp
  • Score: 3

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