SilverJet (Merged 30/05)
Apart from the pax side, are Silverjet (and the other Premium carriers) taking much in the way of belly freight ? They must have quite a capacity for it and they are operating on reasonable freight routes. Does it contribute much to revenue ?
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wait and see. The results should be out in the morning for the last 6 month. This must be a scary time for investors who have no idea how fast silverjet is burning cash. It cannot be a cheap airline to operate. How many tonnes of jetfuel does it take to do luton to newark?
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Figures now available. Pretax loss £13.1m on Revenue of £30.6m. Proposed £12m Placing & £10m Convertible Loan.
Exclusive arrival facilities for Luton to be developed. Assume this means immigration arrival, so bypassing the masses as they do on departure.
Exclusive arrival facilities for Luton to be developed. Assume this means immigration arrival, so bypassing the masses as they do on departure.
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Most of the revenue was from flyjet. This is the bit they have axed. Accountant notice at end about it may not be a going concern must scare a few people into accepting the rescue load. This firm is going to need a lot more cash as the injections just pay the running loss for 12 months.
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Silverjet must therefore be massively susceptible to a predatory take over?
Buying old jets might come back to haunt them?
Whoever wrote the business plan for AIM must have been hallucinating?
EDIT
It appears that Silverjet are begging for cash, but what is apparent is their advancement into new markets. This might have occurred sooner than expected and been 'fast tracked'?
One thing is for sure, using old jets can negatively impact your clientèle when the aircraft go 'tech' regularly!?
Buying old jets might come back to haunt them?
Whoever wrote the business plan for AIM must have been hallucinating?
EDIT
It appears that Silverjet are begging for cash, but what is apparent is their advancement into new markets. This might have occurred sooner than expected and been 'fast tracked'?
One thing is for sure, using old jets can negatively impact your clientèle when the aircraft go 'tech' regularly!?
Last edited by Buster the Bear; 22nd Nov 2007 at 21:50.
I am really shocked at the amount of money that has been put into Silverjet - now totalling north of £70m. I haven't even looked at the market cap (which one supposes must be higher) however I am afraid to have to ask: can the buisiness really be worth anything near that much?
Put another way, what of value have they created? A brand - not really. A route network - no. A secure revenue stream - certainly not.
The proliferation of thoroughly flawed business models in this industry never fails to amaze me. I wish Silverjet well but won't be buying any shares!
Put another way, what of value have they created? A brand - not really. A route network - no. A secure revenue stream - certainly not.
The proliferation of thoroughly flawed business models in this industry never fails to amaze me. I wish Silverjet well but won't be buying any shares!
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For those who have not flown Silverjet, and dont know what is is all about....
Silverjet offers absolutely amazing "Silver Service" and hassle free travel for a fraction of the price of the major carriers!
30 min Check-in which is more like checking into a swanky hotel, private lounge's, Private security, and we have even sometimes managed to whisk some very late/lucky customers through security and onto the aircraft long after check-in has closed... Now you will Never get that at BA or Virgin!!! Its all hassle free with customer first!
We have such a fantastic bunch of cabin crew who look after everyone so well. Any customers I have chatted to onboard has been amazed at the quality of service and customer care compared to BA and Virgin's 1st and Business classes. And they all disembarked the aircraft with a smile raving about the "Sivilised" service and food or having slept most of the night flight!!!
Infact look at how many awards for service and innovation Silverjet has recieved in the last 10 months! 7 is it? including Sunday Times Airline of the Year! Not bad seeing we only started 25th Jan 2007.
Setting up and developing such a high level of Service and expanding it obviously takes alot of money and hence investiment. It will become profitable, with loads and yields increasing every month, although everytime we add a new aircraft or route the load factor will drop considerably for a month or two while the customer numbers catch up with capacity. Some can see that it is the future of Business class travel and so have invested alot of cash (thanks by the way!)... Some cant or simply dont understand what Silverjet is offering and so do what is easiest on a rumour network, Slag Silverjet off and harp on about it not lasting.
Look back on Virgin 25 yars ago... they had 1 aircraft for 2 years... Silverjet has 3 in 10 months and will have 5+ in 2 years!
As for the aircraft, they are very reliable and fantastic workhorses. The 767-200 is the perfect size and performance for Silverjet! Yes, SJET had a big delay with her C check which delayed the 2nd New York service but these things happen in aviation. Since SJET came back, the last few months have had very few delays due to aircrew tech probs, infact very few indeed!Touchwood!
I will admit to being an employee of Silverjet... And I love working there, and I am very proud of what we offer and deliver day in day out so well.
I hope this rant is taken the right way... I am not slagging anyone off or trying to have a dig at anyone. I simply want everyone here to understand that it is a great British company that offers fantastic service and customer satisfaction. And there are alot of us trying our hardest to make it the best in the business!
Please support and be proud of us as we are the the only "British" Business class carrier flying the flag for Britain!!!
OK rant over.... I wont be making anymore posts on here for quite some time.
Ops! I did it again
Silverjet offers absolutely amazing "Silver Service" and hassle free travel for a fraction of the price of the major carriers!
30 min Check-in which is more like checking into a swanky hotel, private lounge's, Private security, and we have even sometimes managed to whisk some very late/lucky customers through security and onto the aircraft long after check-in has closed... Now you will Never get that at BA or Virgin!!! Its all hassle free with customer first!
We have such a fantastic bunch of cabin crew who look after everyone so well. Any customers I have chatted to onboard has been amazed at the quality of service and customer care compared to BA and Virgin's 1st and Business classes. And they all disembarked the aircraft with a smile raving about the "Sivilised" service and food or having slept most of the night flight!!!
Infact look at how many awards for service and innovation Silverjet has recieved in the last 10 months! 7 is it? including Sunday Times Airline of the Year! Not bad seeing we only started 25th Jan 2007.
Setting up and developing such a high level of Service and expanding it obviously takes alot of money and hence investiment. It will become profitable, with loads and yields increasing every month, although everytime we add a new aircraft or route the load factor will drop considerably for a month or two while the customer numbers catch up with capacity. Some can see that it is the future of Business class travel and so have invested alot of cash (thanks by the way!)... Some cant or simply dont understand what Silverjet is offering and so do what is easiest on a rumour network, Slag Silverjet off and harp on about it not lasting.
Look back on Virgin 25 yars ago... they had 1 aircraft for 2 years... Silverjet has 3 in 10 months and will have 5+ in 2 years!
As for the aircraft, they are very reliable and fantastic workhorses. The 767-200 is the perfect size and performance for Silverjet! Yes, SJET had a big delay with her C check which delayed the 2nd New York service but these things happen in aviation. Since SJET came back, the last few months have had very few delays due to aircrew tech probs, infact very few indeed!Touchwood!
I will admit to being an employee of Silverjet... And I love working there, and I am very proud of what we offer and deliver day in day out so well.
I hope this rant is taken the right way... I am not slagging anyone off or trying to have a dig at anyone. I simply want everyone here to understand that it is a great British company that offers fantastic service and customer satisfaction. And there are alot of us trying our hardest to make it the best in the business!
Please support and be proud of us as we are the the only "British" Business class carrier flying the flag for Britain!!!
OK rant over.... I wont be making anymore posts on here for quite some time.
Ops! I did it again
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I am no accountant ... but
from the financial statement 6 months ended 30th sept 2007
revenue 30.5 million 18.4 million was flyjet
gross loss 11.4 million of which 1 million was Flyjet
so for silverjet scheduled ~ revenue 12.2 million and losses 10.4 million
cash outflow from the business
6 months 31st march 2007 11.9 million
6 months to 30 sept 2007 14.7 million
therefore 12 months to 30th Sept cash burn 26.6 million
it would seem to me that somethings will have to change if they are to start making a profit
revenue 30.5 million 18.4 million was flyjet
gross loss 11.4 million of which 1 million was Flyjet
so for silverjet scheduled ~ revenue 12.2 million and losses 10.4 million
cash outflow from the business
6 months 31st march 2007 11.9 million
6 months to 30 sept 2007 14.7 million
therefore 12 months to 30th Sept cash burn 26.6 million
The new funding plan, which includes a proposed placing of £12 million shares
and £10 million of convertible loans, is subject to the formal approval of
shareholders at an EGM in December 2007. As the Group is required to access
additional resources, which may not be available in the required time frame for
the Group to realise its assets and discharge its liabilities in the normal
course of business, there is a material uncertainty relating to going concern
should the new funding plan not be approved by shareholders.
and £10 million of convertible loans, is subject to the formal approval of
shareholders at an EGM in December 2007. As the Group is required to access
additional resources, which may not be available in the required time frame for
the Group to realise its assets and discharge its liabilities in the normal
course of business, there is a material uncertainty relating to going concern
should the new funding plan not be approved by shareholders.
Based on discussions with the Group's underwriters as well as existing and
potential shareholders the directors are confident that the future funding plan
will be approved successfully. They have accordingly prepared this announcement on a going concern basis.
potential shareholders the directors are confident that the future funding plan
will be approved successfully. They have accordingly prepared this announcement on a going concern basis.
it would seem to me that somethings will have to change if they are to start making a profit
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I can see why pax would like the service. For every £1000 they spend they get a service that is costing the airline £2000. Things will get better once they have some benifts of scale but it is hard to see how it can ever make a profit unless fuel costs drop.
If you want to make an award wining airline then start with £80m. After a year or two you get an airline worth around £30m and some awards.
If you want to make an award wining airline then start with £80m. After a year or two you get an airline worth around £30m and some awards.
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Flyjet was mugged. It had all its valuable bits taken and then it was killed off. Silverjet has dreams of making it big and Flyjet was not a risky enougth use for the capital. Silverjet can also make it seem that some of the massive loss was down to Flyjet.
Siverjet needs vast amounts of money. Running 5 planes is going to cost a packet and need around 1000 staff. This is all going to go very wrong. Costs are never going to be exceeded by income and you cannot keep getting new investors every 9 months, each thinking its buying the same planes to expand the service.
This will close or get bought out by someone else.
Siverjet needs vast amounts of money. Running 5 planes is going to cost a packet and need around 1000 staff. This is all going to go very wrong. Costs are never going to be exceeded by income and you cannot keep getting new investors every 9 months, each thinking its buying the same planes to expand the service.
This will close or get bought out by someone else.
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A Loyalty programme has been launched aimed at companies. One free flight for every ten taken by employees. Unlike an accumulative points system for individual flyers, free flights are awarded to the business and can be taken by any employee.