Stobart Air has ceased trading and is in the process of appointing a liquidator. The regional carrier had operated a number of short-haul flights on behalf of Aer Lingus.

The group, which owns Southend Airport, said it requires additional liquidity to fund its short-term cash obligations and to enable it to build a strong foundation from which it can return its aviation business to growth.

Regional airline Flybe has said it will not comment on speculation it is facing renewed financial difficulties. According to Sky News, Flybe has been struggling to secure fresh finance.

A consortium led by Virgin Atlantic and Stobart Air has completed the takeover of stricken regional carrier Flybe. All Flybe assets and operations are now owned by Connect Airways and Flybe flights continue to operate as normal, according to a statement from the company.

Cornwall Airport Newquay has confirmed that Stobart Air, a Flybe franchise partner, will add year-round services to London Southend starting in April next year.

Stobart Group has confirmed an interest in acquiring part or all or regional airline Flybe following press speculation. The logistics group and Flybe have a range of shared interests arising from Stobart’s ownership of London Southend Airport and the growing franchise arrangements between the two groups’ airlines.