As part of our focus on the continued growth of Stobart Air, and the development of the Group’s wider aviation interests, we have been reviewing how best to structure and finance this development.

Stobart Air has enjoyed sustained growth, through our strong relationships with both Aer Lingus and Flybe. Our Aer Lingus Regional services continue to perform well, while our Flybe franchise agreement has developed positively.

The Stobart Group Board recently announced that it acquired Invesco Asset Management Limited’s interests in Stobart Air and the aircraft leasing business, Propius Holdings Limited (“Propius”). Negotiations are progressing to acquire the remaining 33% interest in Propius from Aer Lingus.

As part of the next stage of our review, the Board has also decided to:

- End discussions with CityJet about a possible collaboration between the airlines. These discussions explored a range of options, including a change of ownership. Following consideration, and informed by our wider review, the Board has concluded that the agreement with CityJet is not in the commercial interest of the Group. We wish everyone at CityJet well;

- Further develop our services at London Southend Airport (LSA), through an expansion of our relationship with Flybe. We are pleased to announce the addition of up to 18 new destinations from LSA, operated by Stobart Air under our franchise agreement with Flybe. Further details of these routes, which will be operational in summer 2017, will be announced shortly;

- Our Aer Lingus Regional services will continue to grow, with a continued emphasis on growing passenger numbers across our 31 routes throughout Ireland, the UK and France.

We look forward to continuing to advance Stobart Air services and London Southend routes into the future.