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Old 14th Jan 2008, 20:22
  #25 (permalink)  
Flightrider
 
Join Date: Jan 2000
Location: UK
Posts: 1,492
Received 13 Likes on 9 Posts
The Daniel Stewart note is actually pretty close to the mark as far as I can see. The truth may be uncomfortable for many and particularly those whose livelihood is reliant on Silverjet's survival, but at least someone has tried to give a heads-up on a likely fate for the airline in time to allow you to do something about it. It's your choice if you choose to ignore the warning signs. I trust that both the nay-sayers will resist the temptation to say "I told you so" and the unfortunates will resist the temptation to say "why did nobody warn me" when the problems manifest themselves.

Fundamentally, this airline provides a fantastic product which customers love. Rightly so - it's great. But if you can't sell that product for more than the cost of producing it, then you'll never make a profit and go bust. The airline's voracious appetite for cash funding so far ought to be enough of a concern to make even the most pro-Silverjet of employees or outside observers sit up and take note. With respect, the Silverjet management are not going to say to their employee group that the airline is fundamentally challenged, are they?

The actual numbers are open to debate, but you barely need a calculator to work out from the last set of financial figures that it either needs to carry more passengers than it has seats fitted to the aircraft; or double its average fare in order to break even. Either is an extremely tall order. Meanwhile customers will enjoy fantastic service at bargain basement prices for as long as it lasts.
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