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Stobart Group announces deal with Ryanair

The deal with Ryanair will materially increase the number of passengers coming through Stobart Group's London Southend Airport
June 14, 2018

Ryanair (RYA) is set to begin flying from London Southend Airport (LSA) as of summer 2019. This is good news for Stobart Group (STOB), which owns and operates LSA. The agreement will see Ryanair invest around $300m to have three planes based at LSA, which will fly 13 routes to eight European countries. This is expected to bring at least an additional 1m passengers through the airport during the first year, and more than 5m in five years. The agreement initially is for five years but can be extended to up to 10 years.

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Analysts at Stifel believe that this will bring greater awareness about LSA and shows that the airport is an attractive base for airlines. This will be especially true once Crossrail is opened and increases the catchment area within one hour of travel time. The analysts said it “significantly increases” confidence that Stobart Group’s target to have 5m passengers per year through the airport by 2022 will be achieved.