Stobart seeking significant short term cost reductions

Storm 10

Lets hope they will be ok

https://www.thesun.ie/news/5181175/coronavirus-in-ireland-covid-19-flybe-collapse-crisis-stobart-air/

billy few mates

Storm 10 wrote: »

Lets hope they will be ok

https://www.thesun.ie/news/5181175/coronavirus-in-ireland-covid-19-flybe-collapse-crisis-stobart-air/

Oops, very nearly clicked on that but thankfully spotted it was a link to The Sun just in time.
Could you please put a warning in the text next time you post a link to The Sun so people can give it the appropriate treatment?
Thanks

zone 1

i thought stobart were going strong

Odelay

Storm 10 wrote: »

Lets hope they will be ok

https://www.thesun.ie/news/5181175/coronavirus-in-ireland-covid-19-flybe-collapse-crisis-stobart-air/

The sun just makes up news. No need for facts or research, just make up a story.

zone 1

cork is strong for them surely dubs the same

Locker10a

Stobart will be grand, the story is based on an email sent to staff offering part time/unpaid leave between April and June I think which is basically happening in every airline right now. Only they have a genuine reason to offer this as they’ve aircraft now parked that were previously flying for Flybe. It’s considered a fairly blunt email but not really out of character from what I understand

Lapmo_Dancer

Locker10a wrote: »

Stobart will be grand, the story is based on an email sent to staff offering part time/unpaid leave between April and June I think which is basically happening in every airline right now. Only they have a genuine reason to offer this as they’ve aircraft now parked that were previously flying for Flybe. It’s considered a fairly blunt email but not really out of character from what I understand

You didn’t mention the bit where he has unilaterally suspended the payment of pay agreement increments without any consultation. I haven’t heard of that happening in any other airline.

He uses the word critical about five times and says the ‘blunt reality’ is that the company is in a fight for survival.

Cosmo Kramer

Given what has happened with flybe it's not a huge surprise to see Stobart in trouble.

To be honest almost any airline outside of the major operators is going to be feeling the pressure in the coming weeks and months. It seems bizarre to suggest that Stobart would somehow be immune.

Locker10a

Lapmo_Dancer wrote: »

You didn’t mention the bit where he has unilaterally suspended the payment of pay agreement increments without any consultation. I haven’t heard of that happening in any other airline.

He uses the word critical about five times and says the ‘blunt reality’ is that the company is in a fight for survival.

Increments for most staff aren’t due until November, which is after the 6 month freeze on increments, it may affect pilots I’m not sure but IALPA are dealing with that.
No doubt it’s a tumultuous time for small airlines but Stobart are no Flybe

Hotblack Desiato

Is the EI Regional arrangement money in the bank for them, or does Stobart bear the financial risk and pay EI a franchise fee? Anyone know?

Shamrockj

Hotblack Desiato wrote: »

Is the EI Regional arrangement money in the bank for them, or does Stobart bear the financial risk and pay EI a franchise fee? Anyone know?

I think they would be paying a franchise fee because they were paying to use the ei brand / name

Jamie2k9

While I don't think they are in trouble, Stobart Group are not exactly in a strong financial position and Stobart Air will likely come under pressure if this lasts beyond 3 months and peak summer traffic doesn't rebound quickly after.

The question is would IAG let Stobart Air fail or step in...

smurfjed

How is this developing ?

California Dreamer

Cosmo Kramer wrote: »

Given what has happened with flybe it's not a huge surprise to see Stobart in trouble.

STK is not 'in trouble' and talk like that is not helpful.

Like every other airlines short-medium changes need to be made so that operations continue.

Stovepipe

6 aircraft parked, staff unsure of whats going on and management running the gamut from bluffs to threats and back again. from what I heard, Loganair have stepped in to pick up some of the stuff Flybe dropped so Stobart would want to get itself sorted very quick. Dependingentirely on EI isnt going to work.

California Dreamer

What airline is not parking aircraft at the moment?

Locker10a

Stovepipe wrote: »

6 aircraft parked, staff unsure of whats going on and management running the gamut from bluffs to threats and back again. from what I heard, Loganair have stepped in to pick up some of the stuff Flybe dropped so Stobart would want to get itself sorted very quick. Dependingentirely on EI isnt going to work.

The parked aircraft are a result of the Flybe collapse, they will be channeled into new routes soon but this is likely delayed by the Coronavirus as people aren’t booking anymore.
Strong rumors they’ll be around Belfast and the Isle of Man for a while to come, under which brand remains to be seen

Cosmo Kramer

California Dreamer wrote: »

STK is not 'in trouble' and talk like that is not helpful.

Like every other airlines short-medium changes need to be made so that operations continue.

Sorry if my post offended you, but if you don't think that Stobart (and indeed every airline in Europe of a similar size) are not in trouble here, you're kidding yourself to be honest. We're talking about months of lockdown during the only period of the year that airlines make a decent profit.

This is going to do huge damage to some of the big players in the aviation industry let alone the smaller airlines, realistically if the likes of Stobart and other smaller carriers come out the other end in one piece it will be bordering on a miracle.

Locker10a

Cosmo Kramer wrote: »

Sorry if my post offended you, but if you don't think that Stobart (and indeed every airline in Europe of a similar size) are not in trouble here, you're kidding yourself to be honest. We're talking about months of lockdown during the only period of the year that airlines make a decent profit.

This is going to do huge damage to some of the big players in the aviation industry let alone the smaller airlines, realistically if the likes of Stobart and other smaller carriers come out the other end in one piece it will be bordering on a miracle.

It will really depend on how long it lasts

Storm 10

Locker10a wrote: »

It will really depend on how long it lasts

Any lockdown no matter how long it lasts will cripple airlines, it's not going to end in the next few weeks so can you imagine the hit they will take, many airlines will never again take to the Air.

Jack1985

Stobart Air has fallen into administration.

Update for clarity

Connect Air, a UK based company with 49% holding in Stobart Air, has gone into Administration.

Stobart air has a 30% holding in Connect Air, which was recently involved with the Flybe drama. It is possible that there may be complications with some issues, outside of the Covid issues that are causing worldwide issues

L1011

Take the bickering to PM

Jamie2k9

Not totally unexpected if article is true.

https://www.google.ie/amp/s/amp.independent.ie/business/irish/stobart-air-in-crunch-talks-on-its-survival-39118076.html

irishkopite93

UK Group agrees to buy 49pc stake of Stobart Air for over €340,000

https://www.independent.ie/business/uk-group-agrees-to-buy-49pc-stake-of-stobart-air-for-over-340000-39151870.html