The proposed takeover of Carlisle Lake District Airport has suffered a setback due to financing concerns.

Isle of Man-based operators Ettyl had announced in April that a deal had been reached for the sale of the airport.

But a spokesperson for current owners Esken told the London Stock Exchange that the "proposed financing for the transaction is no longer available".

They added that Ettyl was working on another potential source of financing.

The spokesperson added: “Esken is investigating these matters and seeking further information, including with regard to the impact this may have on the ability of Ettyl to finance the transaction and obtaining the change of control consents required in order to complete the transaction.

“Esken is discussing this matter with its lending banks given banking facility consent for the sale has been obtained.”

Ettyl outlined an intention to retain all staff currently employed by Stobart Air and Carlisle Lake District Airport following the acquisition, which was subject to “bank approval”.

Ettyl was due to acquire Carlisle Lake District Airport for a cash consideration of £15 million, as well as the value of any cash on the balance sheet as part of the overall deal.

At the time, they stated their intentions to lead the airport into a new era, drawing on previous experience.

Speaking after the deal was originally announced, an Ettyl spokesperson said: “When we looked at it, we realised that Carlisle Lake District Airport has very similar challenges to what we had in the Isle of Man.

"Ground transport links aren’t that great to the region and there’s no neighbouring competition in terms of [air] travel.

“We have a big desire to get scheduled services in place for the summer.

"We aim to start building the routes up in a post-Covid world – to the point when they become largely viable on their own.”

A representative for Ettyl could not be reached for comment on the latest development.