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Old 7th Jun 2007, 15:36
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Air Sylhet

I've just got an email through about a new start up airline, Air Sylhet, which is calling for investors.

This seems like a very unusual way of building a business. They claim they are on AIM, but I can't find any more details. They also talk about potential profit growth, but surely any invites for investment have to carry standard stock exchange warnings?

They are talking about various routes ex London & possibly BHX "this summer". If it was just another paper airline, I wouldn't be bothered, but the tender for investment looks very suspect.

Anyone know more?
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Old 7th Jun 2007, 19:40
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Are they really claiming to be on AIM already? I note that here they're talking about AIM entry in 2008.

Not sure what the regulations are for a private placement (which is what this seems to be) as there are no stock exchange rules to be satisfied. I assume it's just a case of "caveat emptor" (caveat investor?).

C.
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Old 7th Jun 2007, 19:58
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"Your shares could enjoy potentially high returns. With shares ownership, you can enjoy further benefits including discounted flights for friends and family and job opportunities with Air Sylhet."
"If Air Sylhet achieved its predicted profit after tax of £9,886,464 then Air Sylhet could be valued at £148 million (£9,886,464 x multiple 15). This is based on a conservative price earning (P/E) ratio of 15. Currently P/E ratios in the Airline industry are running higher including Easyjet at 29* and Ryanair at 30*."
Cryano,
Correct - they are seeking a floatation in 2008. I would assume that a private deal is just that, but this is an online attempt to solicit the purchase of shares, backed up with a road show in local curry houses.
Reading the profile of the chairman, I certainly sense a massive ego trip:
"Shah is a natural leader and is usually the first to identify problems to be overcome. If it becomes clear that a chosen solution to a problem will not work, he will rapidly identify an alternative problem-solving approach. He does not allow his ego to prevent him from seeking facts and guidance. When he needs help, he will not hesitate to admit it - especially in areas that are outside of his immediate expertise. During tough business periods, he will concentrate his resources and energies on essential business operations. He has a considerable amount of self-control and can handle business pressures and is most comfortable in stress situations, responding to challenges rather than being discouraged by setbacks or failures.
Shah is a keen sportsman and enjoys weight training. He prefers games where the mind directly influences the outcome and pace of the game. He has a strong personal drive and high energy levels, he is achievement-oriented and he is tireless in the pursuit of his goals."
This was picked up by the Brum post, but they don't seem to have any further concerns about it.
At best, this is just a very ambitious paper airline project with a naive attempt to gain funding. At worst, there are a lot of people who could get conned by the obvious appeal of a lucrative route network which remains massively underserved - whatever the technical constraints of operating point to point BHX-DKR/ZYL (note - they haven't looked up this code yet on their booking form) may or may not be!
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Old 7th Jun 2007, 22:23
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Jabird:

Actually I share your concern about the marketing to inexperienced investors (and the fact that they refer to Air Sylhet PLC in the present tense would normally imply a current listing). The brochure includes all manner of little gems and non-sequiturs; page 10 is talking about transitioning from wet lease to dry lease operations, but by page 12 the focus is on starting up on a dry lease basis with their own AOC.

Essentially, though (and unlike a company like Silverjet who had a detailed feasibility-checked business plan before flotation) these guys appear to be looking for small investors to bankroll the pre-startup phase (researching whether they can get traffic rights, etc.)

Hmm. The longer I spend on this website the more perturbed I get.

The registered company address in London is a £25 "Fast company formation" accommodation address (this one).

The "corporate headquarters" in Birmingham is an accountancy firm.

I can just about deal with that for an early-stage startup (although the brochure clearly wishes to convey a far more established image).

But then there's a little scrolling headline banner on the bottom: "BREAKING NEWS!!! Air Sylhet reveals acquisition of first aircraft, BOEING 767- 300ER and confirms UK Air Operating Certificate (AOC) and Operating Licence (OL)."
Funnily enough, though, Air Sylhet doesn't appear either in the CAA's lists of AOC holders or Operating Licence holders as of June 1, or indeed in this week's Official Record. Perhaps they are using someone else's AOC? If so, it's at the very least a bit naughty to imply (in the context of an ongoing fundraising operation) that they've satisfied the financial fitness requirements for an AOC grant in their own right.

(I say "a bit naughty" somewhat flippantly, but I actually think it's actively misleading and have emailed the CAA. Will let you know if I hear back.)
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Old 7th Jun 2007, 23:11
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Air Sylhet

I would agree that Air Sylhet are naughty.
They don't have their own AOC or OL however once you talk to them about this directly they do admit that they don't have their OWN AOC or OL.
Unfortunately this comes under hoax. The people they are targetting for investment is mainly the Bengali community who have a very low literacy rate, therefore by saying "...confirms UK Air Operating Certificate (AOC) and Operating Licence (OL)" what they are really doing is misleading vulnerable people into believeing they have their own license therefore they are legal and this itself reassures potential investors to invest.

They are actually abusing and taking full advantage of the vulnerable people who have a low literacy rate into investing in their company.
The funny thing is that I don't think the law can do anything to stop them.
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Old 8th Jun 2007, 00:31
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"Barge pole - don't touch, ignore, sceptical opinion...."

Just a few phrases to describe any possible investment..
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Old 11th Jun 2007, 10:18
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"(and the fact that they refer to Air Sylhet PLC in the present tense would normally imply a current listing)."

Afaik, PLC can mean either:

Public Limited Company, OR
Private Limited Company

In this case, they ARE the latter:

Status: Active
Date of Incorporation: 05/01/2007

Name & Registered Office:
AIR SYLHET PLC
2ND FLOOR
145-157 ST.JOHN STREET
LONDON
EC1V 4PY
Company No. 06042490


Company Type: Public Limited Company
Nature of Business (SIC(03)):
None Supplied


Their slogan "Let's Fly" is a blatant rip off from Easyjet's "Come on Let's Fly"

Now I'm curious about this picture - can anyone identify further?

http://www.airsylhet.com/photo_gallery.html

Looks like an A319 to me, is that LGW? So what's this plane doing there? Do they have some sort of leasing arrangement, or is this a very good piece of photoshopping?

I'm still in two minds about the motives behind this. Any legal eagles know where the law stands on appealing for investment like this? Presumably, they can't be slapped by the LSE if they aren't even members yet?

It would be easy to cry fraud, but I think we all know how much the airline industry attracts dreamers. So is this just a simple case of some very naive business people trying to get even more naive potential customers to open their chequebooks and bankroll a paper airline, or is it more sinister than that?
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Old 11th Jun 2007, 10:28
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Originally Posted by jabird
is this a very good piece of photoshopping
If you think that's "Good" Photoshopping I don't like to think what "Bad" would be like

If they are claiming a UK AOC and they do not have one, wonder how long the CAA will take to react. Shall we start guessing, in years .......
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Old 11th Jun 2007, 10:37
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WHBM,

All I'm saying is that it looks convincing at that resolution, on that website, to an unquestioning eye.

I have enlarged the image in Fireworks.

Now find a picture of an Easyjet A319, and adjust the orange a little.

As for the picture below, I count only headrest covers with Air Sylhet on - the rest are a different logo.

And I'd love to know how you can configure an A319 in a 2-3-2 format - anyone from Ryanair got any suggestions?
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Old 11th Jun 2007, 10:39
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http://www.photo-transport.co.uk/fer...et-gatwick.JPG
game, set & MATCH!
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Old 11th Jun 2007, 10:58
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Looks like a piece of photoshopping on an EZY A319. Pretty poor effort too, using EZY's base colours and just stick the titles and stuff on.
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Old 11th Jun 2007, 11:05
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MME,

Not looks, is.

Check out the photo above. I just did a Google image search, because I thought the "t" in the Air Sylhet logo looked very similar to Easyjet's.

both Easyjet & brum post have been informed.
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Old 11th Jun 2007, 11:50
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Air Sylhet have amended the wording on the scrolling ticker at the bottom of their website. It now says they are "hoping to get a Type A Operating License from the UK Civil Aviation Authority" rather than the previous they have got AOC and OL from UK CAA.
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Old 11th Jun 2007, 12:10
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LOL,

They must have done that just as I was having a chat with trading standards.

I'll still give them the benefit of the doubt - what they are doing is sailing very close to the wind, but we've seen it all before here a thousand times before.

I think the only difference between them and other paper airlines is the extent to which they have bragged about their plans on their website.
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Old 12th Jun 2007, 10:03
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Air Sylhet

I think we should give them the BOD (benefit of the doubt).

I'm pretty sure they have infringed some copyright!

What I find funny is that they are sort of waking up now to all the criticisms, Better late than never!
E.g. they have changed the wording of the AOC and OL to read "hoping to get...".
This still isn't convincing for me. But we all know that they will use third party to operate their flights so why not just write "acquired a third party AOC and OL..."?

It would be great if they could manage to get their own AOC and OL but very much doubt they have enough funding available to even satisfy the CAA about their finacial side.

From what I gather Air Sylhet are really amateurs. They are learning new stuff about an airline as they go along, thus why they have damaged their brand. I woudn't say that RBA are pros but at least they don't act it and their brand is intact.

And Air Sylhet expect me to invest? They even called me up!!!!! At this moment they seem very desperate!
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Old 12th Jun 2007, 14:28
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If you are not authorised by the Financial Services Authority, then trying to get members of the public to buy shares is a criminal offence (an unlawful financial promotion under s.21 Financial Services and Markets Act). It may be that Air Sylhet have someone working for them who is authorised, but from the amateurish-sounding campaign it seems unlikely...

hopefully this is just a bunch of inexperienced clowns and not crooks, but the law exists to stop exactly this sort of thing happening.

Anyone who has received emails, calls or anything like that shuold let the FSA know about it(http://www.moneymadeclear.fsa.gov.uk...ng_advert.html) so hopefully we can avoid some vulnerable people losing their savings.
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Old 12th Jun 2007, 21:01
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Hacker 007,

I'd like to give them the BOD, and lawyer 71, I do think these guys are just being over-ambitious, rather than deliberately mischievous, but it doesn't change my opinion that the airline makes for a very dodgy investment.

I find the association of share ownership with employment opportunity to be particularly worrying - this makes them look more like a ponzi scheme than a legitimate airline.

I have acquired a copy of the business plan, and consider their projections to be extremely poorly thought out.

There is so much confusion over leasing arrangements, but the most bizarre concept is that they will operate on margins of almost 25% from year one. Any historians out there like to comment?

I also see no allowances for insurance, and just 0.5% of turnover spend on marketing, nothing for distribution costs etc. The list could go on, but at least this thread is very visible for anyone who wants to google "Air Sylhet".
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Old 13th Jun 2007, 11:51
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Jabird,

The main thing is that these people who have started Air Sylhet are actually inexperienced and amateurs. They have seen that some other people are trying to open an airline and thought they could do the same.

They actually don't know what they have let themselves in for, but the whole situation is at a point where they can't back down - otherwise people will throw their shoes and eggs at their face.

They advertised their services and everything and then they remembered "how the hell are we going to get our own license?..."

But if they don't deliver they will be in a big problem, thus they have have up with an idea to basically open a charter airline (ACMI and third party AOC and OL - is a sort of charter!). But their main advantage is that the people who have invested blind folded are mainly the Bengali people, who have a record a low literacy and they are easy to encourage especially when investment start from £1000, these people don't and wouldn't want to find out the difference, all they want is an airline!

I have also noticed, from an advert in a Bengali newspaper (Janomot - 08-14 June 2007 Page 17), it says:
"...Greater Sylhet Council and Air Sylhet formerly announce working in partnership for the benefit of the Sylhety community in Britian today..."

Looks like support like this is actually resulting in vulnerable people losing their savings. Greater Sylhet Council should not be biased and should work in partnership with every company. They should even investigate these companies beforehand and give a report to us.
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Old 13th Jun 2007, 16:23
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Hacker,

Excellent points - the real worry as you say is that a bunch of amateurs who would never get past a late night back-of-envelope pub chat get supported by the very community leaders who should be questioning them extremely thoroughly.

There is nothing about this company that gives me the slightest confidence that they will operate any flights - under their own licence, or somebody else's.

Much as though I can relate to the desparation to introduce some much needed competition on these routes, how many times have these guys been asked about the technical issues regarding getting a B767 off BHXs limited runway, then out and back via BOTH Sylhet AND Dhaka, within 24 hours?

Lawyer, the FSA have been informed, but I don't know how long they will take to act. There is a clear case here of some very suspicious activity going on, which at the very least needs to be properly regulated.

Above all else, I find the association between share ownership and employment opportunities to be really worrying - one step away from bribery, yet astonishingly blatant to make such a claim on their website.
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Old 14th Jun 2007, 00:44
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Just an attempt to smear.

I think the comments made in this thread are totally unacceptable.

The comments are derogatory, salacious and a deliberate attempt to smear.
Since when did Pprune become a forum for name calling?

Perhaps Hacker007 and Lawyer71 would like to declare their own interests, especially as this is the first time they have ever posted on Pprune. I wonder if they have a connection to RBA? I see Jabird and Cyrano are co-travellers too.

The comments in the thread contain lots of alcoholic pseudo "legal" speculation, none of which stand up to any scrutiny - and is just a blatant attempt at smearing. And sailing very, very close to the wind.
Its not a good idea to give advice about things you know not.

If you really do have the interests of Bengali's at heart, as you pretend, then try doing something positive for the Bengali community. Just for a change.
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