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Aer Lingus has announced a number of regional flights have been cancelled after one of its operators ceased trading.

The Irish airline was forced to cancel several flights from Dublin and Belfast City airports to UK cities after Stobart Air collapsed on Friday night.

Those who have booked flights are advised not to go to the airport and to check the Aer Lingus website.

The airline said it is communicating with customers to “advise them of their options for refund or rebooking”.

The situation affects a range of flights from Dublin to Kerry, Donegal, Glasgow, Edinburgh and Newquay.

Flights from Belfast City Airport to Manchester, Birmingham, Edinburgh, Leeds Bradford, Exeter and East Midlands have also been cancelled.

An Aer Lingus statement said the operator notified the airline that it was “terminating its franchise agreement with immediate effect”.

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File photo dated 01/05/20 of a man wearing a protective face mask in the departures area of terminal one at Dublin airport. Aer Lingus has announced that a number of regional flights have been cancelled after operator Stobart Air ended its contract with the Irish airline. Issue date: Saturday June 12, 2021.
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The announcement affects flights from Dublin to Kerry, Donegal, Glasgow, Edinburgh and Newquay. FIle pic

Stobart Air said all 480 members of its staff have been notified about the current situation.

A spokesperson said: “It is with great regret and sadness that Stobart Air can confirm the board is in the process of appointing a liquidator to the business and the airline is to cease operations with immediate effect.

“Stobart Air apologises to all its customers for the inconvenience caused at short notice.

“Given the continued impact of the pandemic which has virtually halted air travel… and in the absence of any alternative purchasers or sources of funding, the board of Stobart Air must take the necessary, unavoidable and difficult decision to seek to appoint a liquidator.”

The aviation sector has been one of the hardest hit by the COVID-19 pandemic.

Irish Transport Minister Eamon Ryan described the announcement as “concerning news for the affected workers and for regional connectivity”.

He added: “We will be engaging with all stakeholders today and over the comings days to restore connectivity to the regional airports affected”.

The Aer Lingus Heathrow service from Belfast City Airport is not affected and continues to operate.

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UBS takeover of Credit Suisse: Embattled bank’s chairman describes ‘historic, sad and very challenging’ day

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UBS takeover of Credit Suisse: Embattled bank's chairman describes 'historic, sad and very challenging' day

UBS will take over Credit Suisse in a deal aimed at stemming what was fast becoming a global crisis of confidence.

Credit Suisse, the 167-year-old embattled lender had been brought to the brink of financial calamity last week, despite securing a $54bn (£44bn) credit line from Switzerland’s central bank.

The credit line was agreed upon in a move aimed at reassuring markets and depositors, but it failed to stem a rush of customer withdrawal, prompting a request from the Swiss government for the rival UBS to consider a takeover.

That takeover was announced on Sunday evening – UBS will pay 3bn Swiss francs (£2.6bn) to acquire Credit Suisse, it has agreed to assume up to 5bn francs (£4.4bn) in losses, and 100bn Swiss francs (£88.5bn) in liquidity assistance will be available to both banks.

The deal is expected to be closed by the end of this year.

Colm Kelleher, chairman of UBS Group, said the agreement “represents enormous opportunities”.

He also said that his bank’s long-term aim would be to downsize Credit Suisse’s investment banking business and align it with the “conservative risk culture” of UBS.

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Axel Lehmann, chairman of Credit Suisse, described the day as “historic, sad and very challenging” for his bank and the global market.

‘The best available outcome’

Mr Lehmann said: “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome.

“This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.”

‘Exceptional situation’

In a statement, the Swiss central bank and other officials said that the agreement represented “a solution…to secure financial stability and protect the Swiss economy in this exceptional situation”.

It is also hoped that UBS’s takeover of its old rival will avoid the contagion of the kind seen in the financial crisis of 2008.

This is a significant deal but huge risks continue to lurk in the global financial system

This combination brings together not only Switzerland’s two biggest banks but two of the most significant financial institutions in the world.

There was reference during the press conference to discussions with Jeremy Hunt, the British chancellor.

That underlines the crucial nature of this deal as governments and financial regulators around the world race to contain the banking sector’s biggest crisis of the last 15 years.

This was always a deal that the Swiss government had resisted. It had been speculated so many times over the last decade, but the Swiss government had always wanted to maintain two national banking champions.

But let’s be clear – all the parties involved in this deal have effectively been strong-armed into it by the crisis of confidence which has erupted at Credit Suisse, and which has been fomenting for some time.

UBS has been effectively strong-armed into doing this deal by the Swiss government, and Credit Suisse has been forced to accept it – there won’t be a shareholder vote on the transaction.

The only alternative to this deal happening was going to be when financial markets opened on Monday in Asia and then in Europe, some form of nationalisation or resolution of Credit Suisse which would have deepened the sense of crisis in the industry.

This government-orchestrated rescue does avert the collapse of a major global bank but while it might be tempting to believe this draws a line under this banking crisis, remember that a week ago HSBC stepped in to buy the British arm of Silicon Valley Bank for £1 after its American parent collapsed, and a number of other mid-sized US banks have been forced to seek emergency support in the last 10 days.

All of this is a sobering reminder that as interest rates risk sharply to combat global inflationary pressures, huge risks continue to lurk in the global financial system.

Central banks insist systems are resilient

The news was welcomed by central banks in the US, Europe and in the UK.

All three insisted that banking systems within their jurisdiction are strong and resilient.

The Bank of England said: “We have been engaging closely with international counterparts throughout the preparations for today’s announcements and will continue to support their implementation.

“The UK banking system is well capitalised and funded, and remains safe and sound.”

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Credit Suisse rescue: What now for the UK’s banks?

A deal likely to ripple through global markets

Credit Suisse is one of the world’s largest wealth managers and is also one of 30 banks ranked as systemically important, meaning the deal is likely to ripple through global markets on Monday.

It is also one of the largest investment banking employers in the City of London, employing around 5,000 people.

In a memo to employees on Sunday, Credit Suisse said there would be no immediate impact on clients or day-to-day working operations, adding that branches and global offices would remain open.

It comes after a difficult few weeks for the banking sector, with the collapse of US lenders Silicon Valley Bank and Signature Bank.

The UK branch of SVB was rescued by HSBC for £1, but a number of other mid-sized American lenders have also been forced to seek emergency funding.

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UBS to take over Credit Suisse, Swiss central bank confirms

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UBS takeover of Credit Suisse: Embattled bank's chairman describes 'historic, sad and very challenging' day

UBS will take over Credit Suisse in a deal aimed at stemming what was fast becoming a global crisis of confidence.

Credit Suisse, the 167-year-old embattled lender had been brought to the brink of financial calamity last week, despite securing a $54bn (£44bn) credit line from Switzerland’s central bank.

The credit line was agreed in a move aimed at reassuring markets and depositors, but it failed to stem a rush of customer withdrawal, prompting a request from the Swiss government for the rival UBS to consider a takeover.

That takeover was announced on Sunday evening – UBS will pay 3bn Swiss francs (£2.6bn) to acquire Credit Suisse, it has agreed to assume up to 5bn francs (£4.4bn) in losses, and 100bn Swiss francs (£88.5bn) in liquidity assistance will be available to both banks.

The deal is expected to be closed by the end of this year.

Colm Kelleher, chairman of UBS Group, said the agreement “represents enormous opportunities”.

He also said that his bank’s long-term aim would be to downsize Credit Suisse’s investment banking business and align it with the “conservative risk culture” of UBS.

More from Business

Axel Lehmann, chairman of Credit Suisse, described the day as “historic, sad and very challenging” for his bank and the global market.

‘The best available outcome’

Mr Lehmann said: “Given recent extraordinary and unprecedented circumstances, the announced merger represents the best available outcome.

“This has been an extremely challenging time for Credit Suisse and while the team has worked tirelessly to address many significant legacy issues and execute on its new strategy, we are forced to reach a solution today that provides a durable outcome.”

‘Exceptional situation’

In a statement, the Swiss central bank and other officials said that the agreement represented “a solution…to secure financial stability and protect the Swiss economy in this exceptional situation”.

It is also hoped that UBS’s takeover of its old rival will avoid the contagion of the kind seen in the financial crisis of 2008.

This is a significant deal but huge risks continue to lurk in the global financial system

This combination brings together not only Switzerland’s two biggest banks but two of the most significant financial institutions in the world.

There was reference during the press conference to discussions with Jeremy Hunt, the British chancellor.

That underlines the crucial nature of this deal as governments and financial regulators around the world race to contain the banking sector’s biggest crisis of the last 15 years.

This was always a deal that the Swiss government had resisted. It had been speculated so many times over the last decade, but the Swiss government had always wanted to maintain two national banking champions.

But let’s be clear – all the parties involved in this deal have effectively been strong-armed into it by the crisis of confidence which has erupted at Credit Suisse, and which has been fomenting for some time.

UBS has been effectively strong-armed into doing this deal by the Swiss government, and Credit Suisse has been forced to accept it – there won’t be a shareholder vote on the transaction.

The only alternative to this deal happening was going to be when financial markets opened on Monday in Asia and then in Europe, some form of nationalisation or resolution of Credit Suisse which would have deepened the sense of crisis in the industry.

This government-orchestrated rescue does avert the collapse of a major global bank but while it might be tempting to believe this draws a line under this banking crisis, remember that a week ago HSBC stepped in to buy the British arm of Silicon Valley Bank for £1 after its American parent collapsed, and a number of other mid-sized US banks have been forced to seek emergency support in the last 10 days.

All of this is a sobering reminder that as interest rates risk sharply to combat global inflationary pressures, huge risks continue to lurk in the global financial system.

Central banks insist systems are resilient

The news was welcomed by central banks in the US, Europe and in the UK.

All three insisted that banking systems within their jurisdiction are strong and resilient.

The Bank of England said: “We have been engaging closely with international counterparts throughout the preparations for today’s announcements and will continue to support their implementation.

“The UK banking system is well capitalised and funded, and remains safe and sound.”

Please use Chrome browser for a more accessible video player

Credit Suisse rescue: What now for the UK’s banks?

A deal likely to ripple through global markets

Credit Suisse is one of the world’s largest wealth managers and is also one of 30 banks ranked as systemically important, meaning the deal is likely to ripple through global markets on Monday.

It is also one of the largest investment banking employers in the City of London, employing around 5,000 people.

In a memo to employees on Sunday, Credit Suisse said there would be no immediate impact on clients or day-to-day working operations, adding that branches and global offices would remain open.

It comes after a difficult few weeks for the banking sector, with the collapse of US lenders Silicon Valley Bank and Signature Bank.

The UK branch of SVB was rescued by HSBC for £1, but a number of other mid-sized American lenders have also been forced to seek emergency funding.

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John Lewis may end 100% staff ownership to raise investment for ‘transformation’ as job losses loom

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John Lewis may end 100% staff ownership to raise investment for 'transformation' as job losses loom

The retail giant John Lewis may dilute its 100% employee ownership to raise fresh investment.

The change to the partnership model would signal a major departure for the company, which runs the department store chain and Waitrose supermarkets.

The firm warned of job cuts and told staff it will not hand out a bonus for only the second time since 1953 this week after posting an annual loss of £234m as costs soared and sales dipped.

Dame Sharon White, its chairwoman, is in the early stages of exploring a plan to change its mutual structure in an attempt to raise up to £2bn of new investment, according to The Sunday Times.

The group would consider selling only a minority stake and its priority would be to maintain majority employee ownership, the newspaper said.

Any move would have to be voted on by the retailer’s partnership council of about 60 staff.

In the face of tough trading conditions, the firm has been looking to diversify its operations, including a move into the “build to rent” property business.

More on John Lewis

At the end of last year it signed a £500m deal with Abrdn, a global investment company, that will help it build 1,000 new homes.

The John Lewis Partnership said: “We’ve always said we would seek partnerships to help fund our transformation and exciting growth plans.

“We’ve done this with Ocado in the past and now with Abrdn.

“Our partners, who own the business, will be the first to hear about any developments.”

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The business includes 329 Waitrose shops

UK’s largest employee-owned business

The business was founded by John Lewis with a small shop on Oxford Street in 1864.

His son, John Spedan Lewis, created the partnership more than 70 years ago as an experiment into a better way of doing business by including staff in decision-making.

The John Lewis Partnership is the UK’s biggest employee-owned business with around 74,000 staff, known as partners.

The group has 34 John Lewis shops and 329 Waitrose shops, along with its retail websites.

In a letter sent to staff last week, Dame Sharon raised the spectre of job losses as part of efforts “to become more efficient and productive”.

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‘Inflationary pressures’

A loss of £78m was recorded for the financial year which ended in January but when exceptional costs were added this reached £234m.

These included the write-down in value of Waitrose stores.

It represented a slump from a £181m profit in the previous year, with John Lewis blaming “inflationary pressures”.

The update came a day after the group appointed turnaround specialist Nish Kankiwala as its first chief executive, in a shake-up of the leadership structure.

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