Planestation/EUJet - Latest
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Planestation/EUJet - Latest
Did anyone else catch the announcement by Planestation (PTG) to the Stock Exchange today?....
Its a very long document but in brief here's the key points...
*PTG is to raise £30million by a placing/issue of 300 million new shares at 10p each.
*PTG will exercise its option to buy the 70% of EUJet that it does not yet own.
*A number of underperforming routes have been identified and these are likely to be reduced or cut if things dont improve.
*Some of the money raised will be needed to provide working capital as the group is still experiencing net outflows (i.e. running at a loss) On these figures they are haemorraging cash at an alarming rate IMO
*The prospects for Manston are linked to EUjet and the loss of EUjet would be seriously detrimental to Manston's viability.
quote-
"The Group is currently dependent on the short-term support of its bankers and its bankers confirmed that unless the Issue was announced by 16 December 2004 that support would be immediately withdrawn"
"The airline carried some 73,500 passengers between 1 September 2004 (when it commenced operations as a low-cost airline) and 30 November 2004 and on 3 December 2004, had advance bookings for 85,409 passengers. However following
adverse media comment about the financial stability of low-cost airlines including EUjet, early indications are that the number of bookings received and passengers carried in the first week of December have been below expectations."
"Shareholders should note that EUjet has continued to experience a cash outflow as a result of its operations since 30 September 2004 and EUjet remains dependent on the support of the Company. (PTG)"
The main working capital requirements of EUjet over the next 12 months are expected to be:
GBP16.4 million for aircraft lease, crew and maintenance costs
GBP10.6 million for fuel costs;
GBP12.4 million for route, airport and handling costs; and
GBP3.3 million for marketing and distribution.
These amounts will be partially offset by the expected revenues of EUjet over the next year.
In short, PTG's bankers have told them to raise this money or they would have pulled the plug.
PTG's share price closed at 12p today.They have dropped dramatically from 65p as recently as mid-Oct and have halved in price this month alone.
This looks like a last throw of the dice to me. If this fails there is no plan B.
Its a very long document but in brief here's the key points...
*PTG is to raise £30million by a placing/issue of 300 million new shares at 10p each.
*PTG will exercise its option to buy the 70% of EUJet that it does not yet own.
*A number of underperforming routes have been identified and these are likely to be reduced or cut if things dont improve.
*Some of the money raised will be needed to provide working capital as the group is still experiencing net outflows (i.e. running at a loss) On these figures they are haemorraging cash at an alarming rate IMO
*The prospects for Manston are linked to EUjet and the loss of EUjet would be seriously detrimental to Manston's viability.
quote-
"The Group is currently dependent on the short-term support of its bankers and its bankers confirmed that unless the Issue was announced by 16 December 2004 that support would be immediately withdrawn"
"The airline carried some 73,500 passengers between 1 September 2004 (when it commenced operations as a low-cost airline) and 30 November 2004 and on 3 December 2004, had advance bookings for 85,409 passengers. However following
adverse media comment about the financial stability of low-cost airlines including EUjet, early indications are that the number of bookings received and passengers carried in the first week of December have been below expectations."
"Shareholders should note that EUjet has continued to experience a cash outflow as a result of its operations since 30 September 2004 and EUjet remains dependent on the support of the Company. (PTG)"
The main working capital requirements of EUjet over the next 12 months are expected to be:
GBP16.4 million for aircraft lease, crew and maintenance costs
GBP10.6 million for fuel costs;
GBP12.4 million for route, airport and handling costs; and
GBP3.3 million for marketing and distribution.
These amounts will be partially offset by the expected revenues of EUjet over the next year.
In short, PTG's bankers have told them to raise this money or they would have pulled the plug.
PTG's share price closed at 12p today.They have dropped dramatically from 65p as recently as mid-Oct and have halved in price this month alone.
This looks like a last throw of the dice to me. If this fails there is no plan B.
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Well blow my cotton socks off!!!!!!
have I just read that correctly?
A Start up, low cost operator with a handful of old tired F100's based in a regional airport has calculated a working capital requirement for 12 MONTHS OPERATION of...
£42.7 MILLION
Well, they say the way to make a small fortune in Aviation is to start with a LARGE fortune......but this takes the biscuit.
But ...hang on....it will be
Ah well thats ok then...but thats a shed load of cheap tickets
have I just read that correctly?
A Start up, low cost operator with a handful of old tired F100's based in a regional airport has calculated a working capital requirement for 12 MONTHS OPERATION of...
£42.7 MILLION
Well, they say the way to make a small fortune in Aviation is to start with a LARGE fortune......but this takes the biscuit.
But ...hang on....it will be
Partially offset by the expected revenues
Last edited by jmc-man; 16th Dec 2004 at 22:53.
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Am i the only person thinking that Manston will make a nice site for Mr Prescotts South-east housing scheme? With Jet supports closure and MK's departure, i would say Manstons future is that of West Mallings old airfield, if EUJET fold.
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Putting £42.7 million into a bank @ 5% will return £2.08m interest annually.
Would I prefer £2m in the bank or: (bear me with)
5 108 seated F100's operation 4 return flight a day for 12 months = 1.5m seats... Average load factor of 50% in year one = 750k passengers... (First three months under 30%)
using average EasyJet yield of approx £42.00 per passenger = £31.5m revenue for EUJET. To make more than 2m cash EUJET needs an operating margin of 6.6%. Dont forget that EasyJets operating margin is only 8.8% and southwest only 8.6%.
Now which would you invest in?
Would I prefer £2m in the bank or: (bear me with)
5 108 seated F100's operation 4 return flight a day for 12 months = 1.5m seats... Average load factor of 50% in year one = 750k passengers... (First three months under 30%)
using average EasyJet yield of approx £42.00 per passenger = £31.5m revenue for EUJET. To make more than 2m cash EUJET needs an operating margin of 6.6%. Dont forget that EasyJets operating margin is only 8.8% and southwest only 8.6%.
Now which would you invest in?
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Serko - Airports with under 1m passenger departures tend not to be profitable, so in reality EUJet owning the airport would be a further strain on their finances.
If owning an airport was such a great Idea, how many other European airlines own airports??
I can only think of one... Coventry.
Now, in the US lots of airlines own their terminals... and they arent profitable.
If owning an airport was such a great Idea, how many other European airlines own airports??
I can only think of one... Coventry.
Now, in the US lots of airlines own their terminals... and they arent profitable.
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eujet's costs for the next 12 months are.
£16.4million aircraft leasing, maintenance and crew
£10.6 million fuel costs
£12.4 million route airport, handeling costs
£3.3million Marketing and distribution.
£16.4million aircraft leasing, maintenance and crew
£10.6 million fuel costs
£12.4 million route airport, handeling costs
£3.3million Marketing and distribution.
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Following on from Bishbash - nothing would please Wiggins (sorry, Planestation) more than Manston airfield and the adjacent business park going for housing. They'd make a lot more money than operating an airline!
That does raise the question of who would buy the houses, where they would work, etc. The Manston area is already one of the cheapest places to buy in the south east.
That does raise the question of who would buy the houses, where they would work, etc. The Manston area is already one of the cheapest places to buy in the south east.
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Answering some of the Above :
The biggest employer in the area, Pfizers are a big user the airport. On the Airport Business park you have Cummings, and if IIRC Air Atlanta are building a warehouse.
Jersey Flights will be back in 2005 with Aeroscope(Airline Unknown) along with some Newmarket(KM) Charter Flights.
Cargo Flights are still operated by Ethiopian , UK Gov. (ODA), African International, United Arbian Airlines plus various east european Anothov(sp) operators.
IIRC, The Italian Airport has Excel using EMB135(?) + Holiday charter flights in the Summer.
--------------------------------------
If Planestation did fold, is there a back-up plan, manston revert back to the MOD(Still a big user)? ATC will be Good FUN.
The biggest employer in the area, Pfizers are a big user the airport. On the Airport Business park you have Cummings, and if IIRC Air Atlanta are building a warehouse.
Jersey Flights will be back in 2005 with Aeroscope(Airline Unknown) along with some Newmarket(KM) Charter Flights.
Cargo Flights are still operated by Ethiopian , UK Gov. (ODA), African International, United Arbian Airlines plus various east european Anothov(sp) operators.
IIRC, The Italian Airport has Excel using EMB135(?) + Holiday charter flights in the Summer.
--------------------------------------
If Planestation did fold, is there a back-up plan, manston revert back to the MOD(Still a big user)? ATC will be Good FUN.
Last edited by fj1; 17th Dec 2004 at 19:33.
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The Italian Airport has Excel using EMB135(?) + Holiday charter flights in the Summer.
niknak
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fj1
"ATC will be good fun"
Is that why they've had no "suitably experienced" applicants to either the advertised posts for an ATSM or ATCOs, and the resident atcos of any quality are desperate to leave?
"ATC will be good fun"
Is that why they've had no "suitably experienced" applicants to either the advertised posts for an ATSM or ATCOs, and the resident atcos of any quality are desperate to leave?
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airhumberside,
Just looked at their annual report "As a consequence of our decision not to invest further in the loss-making airport at Cuneo
our shareholding has been diluted to nil. ".
But Cuneo is still on their website!.
cheers for the info.
Just looked at their annual report "As a consequence of our decision not to invest further in the loss-making airport at Cuneo
our shareholding has been diluted to nil. ".
But Cuneo is still on their website!.
cheers for the info.