Ryanair invests in new Southend base gives Stobart a lift
Budget airline Ryanair had agreed make a $300m investment in the opening of a new base at Southend airport, giving a boost to operator Stobart Group.
The five-year agreement, extendable to ten, has been agreed on Stobart's standard commercial terms.
Ryanair plans to operate three planes out of the airport from summer 2019, carrying passengers on 13 routes to eight European countries, including six new destinations. At least 55 weekly flights will result in the need for 750 on-site jobs per year.
The pair said the airport would be expected to welcome at least a million additional passengers in the first year and in excess of five million in the first five years.
The news gave Stobart shareholders some relief from the current boardroom battle with the shares spiking almost 10% higher to 259.5p.
Ryanair said Southend Airport's train station will deliver direct services from the terminal to London Liverpool St and also the new Crossrail service that is due to open in 2019.
Stobart chief executive Warwick Brady said Southend was now the UK's fasting growing airport, following a 29% increase in passenger numbers over the last year.