Stobart Group to cut jobs after easyJet pulls out of Stansted, Southend
Stobart Group said it was cutting jobs after easyJet on Tuesday confirmed it was closing its bases at Southend and Stansted airports.
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The company, which provides check-in and baggage handling services at both airports, said it would start consulting on job losses as part of wider cost cuts within the division as it dealt with the impact of the Covid-19 pandemic.
EasyJet has four aircraft based at Southend and will cease operations from both airports on August 31. The budget carrier, which is also closing its base in Newcastle, made the decision in response to a collapse in air travel as it prepares to operate in a smaller aviation market, and blamed government quarantine measures for stifling a recovery in the sector.
Stobart chief executive Warwick Brady said the company was "disappointed" by the easyJet decision, but added that he expected vacant slots left by the airline will be "attractive" to other airlines.
The London-listed group also stressed that it remained confident in its balance sheet, liquidity position and medium-term opportunities for its key strategic London airport assets.
"We expect that this decision will create [a] significant opportunity for other airlines looking to take on established, popular and profitable routes. Though the 2020 Summer and Winter periods will continue to be challenging, we expect passenger demand for short-haul leisure flying to increase through 2021, and we are in active dialogue with airlines regarding their interest in capitalising on these well-established, profitable routes," Brady said.
As of 0900 BST, Stobart shares were down 3.18% at 28.95p.
(Writing by Frank Prenesti. Editing by Michele Maatouk)