Silverjet badly damaged
The brokers comments and questions over the future of the airline will hit bookings. The Broker took the accounts for the period up to 30th September and worked out the historic costs and Income. You can do it yourself from the accounts and traffic numbers. Income £11,820,000 paying pax 24,603 singles give a income for return pax of £960.85p. The big dispute is over the costs of each return trip for the 767. In the first 6 months they only had 1 plane operating and cost were high. The admin and adverting was £5m in 6 months. Even if they have got the rotation cost down to £75,000 they need 78 passenegers just to cover the cost of the flight. With the extra flights they must need to rasie around £1 to cover overheads. That is another 1040 return pax or about 69 sectors per day. Even if every 1 of the 5 planes did two sectors every day it would need 6.9 extra people on each sector.
basicly the airline needs 85% load factor and strong ticket price to cover costs even given the spin from the airline. If they carry on giveing 20% discounts then every one of the 5 planes would need to be around 106% full.
the airline does not have a viable way to make money.