Stobart Group is investigating buying back the aviation arm it sold as it entered into the failed consortium of Connect Airways.
The owner of Southend airport sold regional carrier Stobart Air and aircraft leasing arm Propius to form Connect Airways – a partnership alongside Virgin Atlantic and Cyrus Capital formed to acquire Flybe.
But Connect Airways went into administration with the failure of Flybe last month.
Following press speculation, Stobart Group confirmed it was in talks with administrators EY to acquire Stobart Air and Propius, neither of which are in administration.
In a statement to the London Stock Exchange on Thursday, Stobart Group said: “The company confirms that it is reviewing all options in relation to the future of Stobart Air and Propius during this unprecedented time, including the possibility of acquiring the businesses from the administrators.
“A range of discussions are ongoing and there is no certainty that any transaction will take place.”
The company added that its board believed the two firms had a “viable future” after Covid-19.
The group said: “By working with Aer Lingus as franchise partner it can place the business on a secure footing and manage the impact of guarantee obligations in a controlled manner.
“These legacy obligations relate to a sale and leaseback of aircraft carried out in early 2017.
“They include maintenance commitments, together with certain obligations in respect of the franchise agreement with Aer Lingus and certain fuel hedge arrangements in respect of Stobart Air and cumulatively could potentially be significant.
“These obligations remained with Stobart Group after the Connect Airways transaction as they were scheduled to run off over a period of time and it was not possible for these to be released.”