Sutton Harbour has completed the previously announced sale of Air Southwest to Eastern International Airlines.
The deal went through for £1.5 million, less an expected adjustment of £2.8 million for unflown ticket revenues and working capital.
The sale is expected to result in a net cash outflow from Sutton Harbour of approximately £1.3 million to Eastern.
The loss on the sale, together with costs, will be approximately £7.3 million, excluding trading losses incurred by Air Southwest during the six months to the end of September and any tax credit.
Sutton Harbour chairman Michael Knight said: “Air Southwest had made good contributions to the group’s profits prior to the deterioration of trading experienced over the past two years resulting from economic, environmental and competitive factors.
“Joining a larger UK regional airline company gives Air Southwest the best opportunity for a positive future.”