I suspect that this is being done so that Sutton Harbour can claim the Airport is loss-making and close it…
Talks underway to sell UK regional Air Southwest
David Kaminski-Morrow, London (26May10, 09:07 GMT, 165 words)UK regional carrier Air Southwest’s parent, Sutton Harbour Group, is in discussions with potential investors after opting to sell the airline.
Air Southwest operates from the regional airports at Plymouth, Newquay and Bristol to several destinations in the UK and Ireland.
Sutton Harbour Group states that its transport sector has suffered a “sharp deterioration” as a result of the “difficult economy”.
It says the board has decided to dispose of Air Southwest in order to “resource core activities more effectively”.
The company is putting in place a plan to improve the airline’s results. It adds that it is “currently in negotiations with interested parties”.
“Given the current status of the negotiations, the ultimate outcome – including the level of disposal proceeds – is subject to significant uncertainty,” it says.
But the parent company has not made any adjustment to the £3.8 million ($5.5 million) carrying value of the net assets and liabilities of the airline business.
Air Southwest’s fleet primarily comprises Bombardier Q300 turboprops.
Source: Air Transport Intelligence news
By: rdc1000 - 26th May 2010 at 13:24
if there were any profits in the routes i’m sure Flybe would have snapped them up years ago!
Except that Flybe’s aircraft cannot fly into PLH, and they have jumped on routes operated by ASW from NQY.
Sutton Harbour reported annual profits from its ‘Transport’ division which included the Airport and airline. However, as I believe they have previously hinted, the Airport is loss-making, which suggests that the airline was strong enough to cross-subsidise that.
By: cockerhoop - 26th May 2010 at 13:08
if there were any profits in the routes i’m sure Flybe would have snapped them up years ago!
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May 26, 2010 at 10:52 am