Esken Limited Airline update (9289H)
09 Août 2021 - 8:00AM
UK Regulatory
TIDMESKN
RNS Number : 9289H
Esken Limited
09 August 2021
This announcement contains inside information for the purposes
of article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of domestic law by virtue of the European Union
(Withdrawal) Act 2018.
9 August 2021
Esken Limited
("Esken" or the "Group")
Update of Ryanair closure of London Southend Airport Base
Esken today provides an update following the announcement that
Ryanair had decided to close its base at London Southend Airport (
'LSA') with effect from 1 November 2021.
David Shearer, Executive Chairman of Esken commented,
"The terms of the deal which had been entered into with Ryanair
in 2018 were based on a significantly different set of market and
economic parameters to the present day. We are therefore
commercially agnostic to this decision and will look to build
sustainable and profitable passenger growth for LSA with a range of
other carriers as demand recovers into a post pandemic world."
"LSA has a catchment area of c8 million people resident within
one hour travelling time from the airport, a regular direct train
connection to London Liverpool Street station, a cost efficient
base of operation for airlines and an enhanced safe passenger
experience for post COVID-19 travel. The fundamental commercial
rationale for LSA remains strong and our partnership announced
recently with Carlyle will allow us to capitalise on that
opportunity as passenger demand recovers."
Ryanair currently has two based planes operating out of LSA but
schedules, load factors and yields have been affected significantly
by the uncertain market in aviation resulting from the COVID-19
pandemic. Following a review of its network Ryanair has decided to
redeploy these aircraft to its other bases to improve its own
overall network efficiency with effect from the start of the winter
flying season.
The impact on both EBITDA and cash headroom in FY22 will be
negligible in view of the expectation of limited flying in the
winter season. In relation to FY23 management have time to
implement mitigating actions which will include cost savings and
deferral of discretionary capital expenditure and attracting new
carriers into LSA to operate the routes vacated by Ryanair. The
impact on EBITDA and cash headroom in FY23 if no such actions were
taken is expected to be around GBP1.4 million against the
Reasonable Worst Case Scenario as set out in Prospectus and
Circular issued on 28 July 2021. The ring fenced funding facility
for the airport has adequate headroom to cover any such potential
impact.
Esken remains focussed on targeting airlines for the recovery of
flying in summer 22 when demand is expected to show a recovery post
COVID-19. The Group is in active dialogue with a range of Low Cost
and Flagship Carriers where the previously proven route
profitability, the airport's efficient operating cost base and the
safe passenger experience is likely to prove attractive as demand
recovers.
The announcement by Ryanair does not have any impact on the
investment into LSA announced with Carlyle Global Infrastructure
Fund ( 'Carlyle') or the new banking facilities referred to in the
Prospectus and Circular.
Enquiries:
Esken Limited
Charlie Geller, Communications Director
C/O Tulchan Communications
Tulchan Communications 020 7353 4200
Olivia Peters/David Allchurch esken@tulchangroup.com
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END
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