All Aer Lingus regional flights operated by Stobart Air have been cancelled with immediate effect.

Stobart Air announced it has ceased operations.

A Manx company called Ettyl had planned to buy Stobart Air but announced only a few days ago that it had alerted Manx police after issues with paperwork provided by a proposed third party funder.

Earlier this month an Ettyl spokesman told Isle of Man Newspapers: ’Ettyl Limited can confirm that it raised concerns with the Isle of Man Constabulary as soon as it became aware of an issue with the paperwork supplied by one of the proposed third party funders.

’At this time, it will not be appropriate to comment further on this matter.

’Ettyl Limited are now in discussions with potential alternative providers of finance.

Isle of Man Newspapers had only earlier this week sought a comment on when flights might be resumed between the island and Dublin and only yesterday (Friday) a spokesman told us: ’We will recommence services to and from the Republic of Ireland in line with passenger demand, as and when travel restrictions in the Republic of Ireland permit unrestricted travel within the Common Travel Area.’

But Aer Lingus today issued this statement: ’Late on the evening of 11th June, Stobart Air notified Aer Lingus that it was terminating its franchise agreement with Aer Lingus with immediate effect.

’As a result, all Aer Lingus Regional flights operated by Stobart Air are cancelled.

’Stobart Air referred to the continuing impact of the pandemic which has resulted in almost no flying since March 2020.

’Stobart Air has ceased trading and is now in the process of appointing a liquidator.

’Aer Lingus apologises to customers for the inconvenience caused by the cancellation at such short notice of all flights operated by Stobart Air.

’Aer Lingus is now communicating to customers to advise them of their options for refund or re-booking.

Customers who were booked to travel on flights operated by Stobart Air are advised not come to the airport and to check the Aer Lingus website for updated information on refund or re-booking options.

All Stobart Air flights on the following routes are cancelled:

Dublin / Kerry; Dublin / Donegal; Dublin / Glasgow; Dublin / Edinburgh; Dublin / Manchester; Dublin / Newquay; Belfast City / Manchester; Belfast City / Birmingham; Belfast City / Edinburgh; Belfast City / Leeds Bradford, Belfast City / Exeter; Belfast City / East Midlands.

In a statement, Stobart Air said it was with ’great regret and sadness’ that its board is in the process of appointing a liquidator and that the airline is to cease operations with immediate effect.

’This unavoidable and difficult decision means that all Aer Lingus Regional routes, currently operated by Stobart Air under its franchise agreement with Aer Lingus, have been cancelled,’ it said.

The company said all 480 staff have been informed of the decision and it acknowledged the ’significant contribution, loyalty, dedication’ of the team.'

Ettyl, based in Douglas, proposed to acquire Stobart Air and Carlisle Lake District Airport for an initial outlay of £2.

Ettyl, led by start-up entrepreneur Jason Scales, confirmed in April that it had signed agreements for the buy-up from aviation and energy infrastructure group Esken Ltd subject to bank consent.

Ettyl’s registered address is at Queen Victoria House, on Victoria Street, Douglas and chief executive Mr Scales has an office at the ‘Hubb’, a serviced office business and ‘incubator’ that facilitates investments into start up businesses.

The original £2 sale price was contained within an announcement by the current owners Esken Ltd to the London Stock Exchange in April on the structure of the transaction.

At the time the sale price also included ‘the value of any cash on the balance sheet payable at completion together with a contingent consideration of £7.5m payable upon and to the extent of the occurrence of certain trigger events at any point up to July 1, 2024.