Aer Arann is to start operating from Southend airport, 40 miles from London, following an investment from the airport’s owners the Stobart transport group.
Flights to Galway and Waterford will start on March 28, with more destinations, including those aimed at business travellers, to be scheduled later next year.
Stobart has invested heavily in the airport, which opens a dedicated rail station in December within walking distance of the terminal that will link it with the City of London in 50 minutes. The airport hopes to benefit from the 2012 Olympics and to emulate some of the success of London City airport.
“We have a lot of planning to do, there is obviously potential there for more destinations, both passengers and freight,” said an Aer Arann spokesman.
Southend airport currently has only one scheduled route, a summer service to Jersey operated by Flybe. The short runway means there are restrictions on the types of aircraft that can be used, but Aer Arann’s 40-70 seat turboprop aircraft can easily operate there.
Aer Arann is to emerge from examinership on Wednesday (November 10) following the cash injection from Stobart and other investors. The Dublin-based airline, which flies as Aer Lingus Regional as well as under its own brand, sought protection from its creditors in August. Under the Irish system, troubled companies can do so while they restructure or seek investors.
A consortium comprised of Aer Arann owner Padraig O’Ceidigh and the Stobart Group is investing €3.5million, with a further €1.5million being made available for working capital. O’Ceidigh is the current owner of Aer Arann and will remain the largest shareholder and executive chairman.
“Aer Arann now has a platform from which it can grow and develop”, he said.
Another €2.2 million is being invested by Tim Kilroe, whose father owned a majority shareholding in Aer Arann until 1994.
The airline’s plan safeguards all 320 jobs in Ireland and those of the more than 200 people indirectly employed throughout the country. It said bookings throughout the examinership period had been “robust”.