Talks between CityJet (WX, Dublin International) and UK-based logistics firm Stobart Group over the latter's proposed sale of its Stobart Air (Dublin International) unit to the former, have fallen through.

Stobart Group said in a statement that its decision to end talks with CityJet had come following a greater review of the partnership's ramifications.

"Following consideration, and informed by our wider review, the Board has concluded that the agreement with CityJet is not in the commercial interest of the Group," it said.

Commenting on the matter, CityJet Executive Chairman and CEO Pat Byrne said his firm was disappointed by Stobart Group's decision. Had the merger gone ahead, it would have created one of the largest regional airlines in Europe.

"In my experience, most significant corporate transactions have a certain life and, if completion is not reached within that window, the dynamics shift and people tend to move on. Naturally, we are very disappointed as we have been highly motivated to try to finalise this deal. We saw Stobart Air as a really good fit for our growing business,” he said.

Stobart Group said that with its impending takeover of Propius Holdings Limited, the lessor which owns eight ATR72-600s that are operated by Stobart Air, it will now focus on developing the operations of both the carrier and its London Southend investment.

In terms of immediate developments, Stobart Air will add eighteen new routes out of Southend during Summer 2017 as part of its growing franchise partnership with flybe. (2002) (Exeter). Additionally, it will also seek to expand its Aer Lingus Regional operations with a continued emphasis on growing passenger numbers. Aer Lingus Regional currently serves thirty-one routes throughout Ireland, the UK, and France.