Big loss expected on Air Southwest sale
17.07.10
The owner of Air Southwest has confirmed it expects to make a ‘significant loss’ on its sale, Bristol 24-7 reports. Plymouth-based Sutton Harbour Holdings put the airline on the market in May following spiraling losses caused by bad weather, the Icelandic ash cloud and the cost of launching new routes.
Sutton Harbour chairman Michael Knight told shareholders at the group’s AGM this week that talks are continuing with a number of potential buyers, reported to include Eastern Airways and Flybe. He said: ‘It is expected that a significant loss will be incurred on disposal of Air Southwest. This is disappointing but the board believes it is in the long-term interests of the company to focus on our strengths and to eliminate the volatility inherent in airline operations.’
Sutton Harbour's transport division, which includes Air Southwest and Plymouth Airport, made an operating loss of £3.94million during the year to March 31. Air Southwest operates daily services from Bristol to Leeds Bradford, Newquay, Plymouth, Manchester and Jersey. These are operating as usual while talks to sale the airline continue.
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