UK budget carrier Jet2’s parent, Dart Group, has sold its sister logistics business to investor Culina Group.
The divestment of Fowler Welch, for a gross cash consideration of £98 million, leaves Dart Group able to concentrate exclusively on the leisure airline operation.
Jet2 is based at Leeds Bradford airport and has an associated travel operation Jet2holidays.
But the carrier has had its flight programme suspended since mid-March, as a result of the coronavirus crisis, and Dart Group has moved to shore up liquidity.
Although Dart Group has forecast a full-year profit of £265-270 million for the 12 months to 31 March, it says its exceptional charges will include £109 million relating to ineffectiveness of fuel and currency hedges.
It recently raised £172 million in new capital, through a share placing, as part of its liquidity measures.
Dart Group has also taken advantage of the UK government financing scheme developed to help businesses cope with the crisis.
Divestment of Fowler Welch, it says, will enable Dart to “focus on its long-term strategy” of expanding its leisure travel operation, while enabling the logistic firm to “flourish” under new ownership. Culina Group specialises in logistics for the food and drink industry.
