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Old 14th Jan 2008, 08:17
  #17 (permalink)  
stansdead
 
Join Date: Aug 2005
Location: uk
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As much as I think it would be a nice outfit, with quick upgrade potential, there is NO WAY that I would ever go there.

IMHO Silverjet will not exist by the end of the year.

All the signs are there already. They have no positive cashflow and in order to expand will have to go begging for more money from investors.

Oil prices will remain stubbornly high for good and the business model has not catered for $100 barrels of oil. It is predicated on $60 a barrel more likely.

The leisure market will take a downturn this year. USA is in/near to being in recession. Luxury leisure travellers are being squeezed by inflation back here and relatively high interest rates. The feel good factor of house price rises (hence wealth) is dwindling fast over here as well. All these things add up to more doubt over the business only model.

True, some businesses may make their employees travel on Silverjet or Eos, but see my next point...

Add to that cut throat competition from established flag carriers and you have a recipe for disaster.

Rising prices and lower profits are a toxic mix for any business, but for one as new, exposed and isolated as Silverjet it spells an early end I fear.

Goodbye to Silverjet in 2008.
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