SilverJet (Merged 30/05)
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Silverjet has issued a Stock Exchange announcement rebuffing the analyst note issued earlier.
Claims "inaccuracies" which has resulted in the share price falling some 28% today.
Claims "inaccuracies" which has resulted in the share price falling some 28% today.
The statement referred to above confirms 5000 ticket sales last week. The current timetable shows 20 round trips per week (for which tickets are currently being sold). With aircraft configured at 100 capacity, I make that 4000 available (single) seats per week. OK they've got a sale on, but selling 125% of their weekly capacity in a week sounds pretty good. If their clients are increasingly repeat bookings, they will be less price-sensitive than new bookers too.
I really hope they survive and prosper
I really hope they survive and prosper
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Some of us ARE company directors!
QUOTE
"I am sure that all you budding company directors know the buisiness in side out, so why not pop along to their head office and give them your advise."
Well RFFS the funny thing is that some of us ARE company directors, but there is a difference, the company of which I am MD of is actually making a healthy profit. Sadly this is not a concept to which the directors of Silverjet could relate.....
"I am sure that all you budding company directors know the buisiness in side out, so why not pop along to their head office and give them your advise."
Well RFFS the funny thing is that some of us ARE company directors, but there is a difference, the company of which I am MD of is actually making a healthy profit. Sadly this is not a concept to which the directors of Silverjet could relate.....
Last edited by Hackhackwhosthere?; 12th Feb 2008 at 09:11. Reason: spelling
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from the 16th of feb to the 1st march they are only running 1 plane to Newark.
in their sale they are selling return trips for £899 of which £77 is tax. That leaves £812 to pay for the rotations. If they cost £75K then that is 92.3 pax needed per flight to cover the cost of flying. Lots of other things are excluded from the 75K.
in their sale they are selling return trips for £899 of which £77 is tax. That leaves £812 to pay for the rotations. If they cost £75K then that is 92.3 pax needed per flight to cover the cost of flying. Lots of other things are excluded from the 75K.
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Befree - think you are slightly missing the point here. the average fare will not be £812 as not all fares will be sold at the sale price level as like the low cost airlines prices go up closer to departure. If average fare is £100 higher (perhaps 10 passengers a flight book flexible tickets at £1500+ and a number of others book the standard fare) per sector makes quite a big difference to the numbers. If you assume that Ryan/easy average fare is the same as their sale price (£1-10) then under your analysis they would be doomed to fail as well.
Second reading the statement the average cost per sector has gone from 65k at time of ipo to 75k today .....not the huge increase in a 95$ oil world that your past posts have predicted predicted.
Third management stated in release that they expect to make a profit before tax in March....not bad for an airline that has only been going 15 months in a season(winter) when most other airlines (inc successful ones like easyJet) lose money. Also being a PBT figure this will include all head office/marketing and other general overhead costs and is not just breakeven on a per plane basis. The directors would not have put this statement out if they were not confident in delivering on it, as not worth getting in trouble with FSA and like for knowingly misleading the market.
Anyway we will see either way in the next two to three months. However I suspect that with 5000 bookings in last week alone, a strong brand and differentiated product and a cost base materially lower than the legacy long haul airlines and a backer with deep pockets and a record of making money (Reuben Brothers) SilverJet looks more likely to be successful than not.
Second reading the statement the average cost per sector has gone from 65k at time of ipo to 75k today .....not the huge increase in a 95$ oil world that your past posts have predicted predicted.
Third management stated in release that they expect to make a profit before tax in March....not bad for an airline that has only been going 15 months in a season(winter) when most other airlines (inc successful ones like easyJet) lose money. Also being a PBT figure this will include all head office/marketing and other general overhead costs and is not just breakeven on a per plane basis. The directors would not have put this statement out if they were not confident in delivering on it, as not worth getting in trouble with FSA and like for knowingly misleading the market.
Anyway we will see either way in the next two to three months. However I suspect that with 5000 bookings in last week alone, a strong brand and differentiated product and a cost base materially lower than the legacy long haul airlines and a backer with deep pockets and a record of making money (Reuben Brothers) SilverJet looks more likely to be successful than not.
For those following the Daniel Stewart stockbrokers comment, the whole story is the headline article in City AM, the newspaper that circulates in the City of London, this morning. Quotes from both sides, Lawrence Hunt (Silverjet CEO) demanding a retraction, Daniel Stewart standing by their story.
Daniel Stewart have a bit of the wind taken out of their sails by a parallel story that both their MD and Director of Equities parted company with the business at the end of last week, all of a sudden. So they have issues of their own.
Daniel Stewart have a bit of the wind taken out of their sails by a parallel story that both their MD and Director of Equities parted company with the business at the end of last week, all of a sudden. So they have issues of their own.
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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.
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.
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Silverjet in Good Shape
Silverjet nearing revenue target, US trade strong
Lawrence Hunt told Reuters the airline would become cash positive in the next few months as he clarified his strategy the day after a brokerage note wrote off Silverjet as "doomed to fail".
"On forward bookings, we're near to 1,100 pounds per seat, just slightly under that at the moment, which is an incredible feat for an airline that's only a year old," he said.
"We had a record sales week last week in the U.S.," he added. "We've seen a massive increase in corporate enquiries by companies looking to cut costs."
Hunt also said he was in early joint venture discussions with investors who want to replicate the Silverjet business model in India, China, South Africa and the Middle East.
The airline will put two new aircraft into service in late May or early June, and is looking at the U.S. west coast, Miami, India and South Africa as possible destinations, he added. (Reporting by Pete Harrison; Editing by Rory Channing
- [*]
Lawrence Hunt told Reuters the airline would become cash positive in the next few months as he clarified his strategy the day after a brokerage note wrote off Silverjet as "doomed to fail".
"On forward bookings, we're near to 1,100 pounds per seat, just slightly under that at the moment, which is an incredible feat for an airline that's only a year old," he said.
"We had a record sales week last week in the U.S.," he added. "We've seen a massive increase in corporate enquiries by companies looking to cut costs."
Hunt also said he was in early joint venture discussions with investors who want to replicate the Silverjet business model in India, China, South Africa and the Middle East.
The airline will put two new aircraft into service in late May or early June, and is looking at the U.S. west coast, Miami, India and South Africa as possible destinations, he added. (Reporting by Pete Harrison; Editing by Rory Channing
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The 20% sale only applies to the cheapest "Saver" tickets, not others such as standard or flex. It is bookable betwen 4 & 31 January, for travel up to 31 October. The cheapest return ticket is thus £879.
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Silverjet in Good Shape
SILVERJET, the business class-only airline, yesterday became embroiled in a row with brokers Daniel Stewart after a damning analyst note caused its shares to nosedive more than 28 per cent.
Daniel Stewart analyst Mike Stoddart, covering the carrier for the first time, gave the airline a 0p target price and advised investors to “sell at any price” because the airline was “doomed to fail”.
The move forced Silverjet to issue a trading update after the market closed last night while the firm’s house broker, Arden Partners, reiterated its buy recommendation as passenger numbers for the coming months had been boosted by recent discounts and the failure of rival Maxjet. In his note, Stoddart said Silverjet was operating at a loss because it was only able to half-fill its planes with passengers.
Stoddart told CityA.M. that Silverjet chief executive Lawrence Hunt was demanding a retraction but he was standing by his note. Hunt said Stoddart was an “absolute muppet” for publishing the note which was riddled with “schoolboy errors”.
Hunt denied the airline’s business model was in trouble as a result of soaring fuel costs, and said it was in a strong cash position, had sold 5,000 bookings last week and was trading in line with expectations.
ALASTAIR CADE, the managing director of broker Daniel Stewart Securities, has abruptly left the company after a dispute with chairman Peter Shea, writes Anusha Bradley.
In a statement yesterday, Shea said Cade was leaving after 12 years to pursue other interests, though it is understood he left on Thursday. A source said yesterday that colleague Hamish Dickson, head of equities at the firm, left on Friday after siding with Cade. A Daniel Stewart spokesman declined to comment on the matter or what the dispute concerned.
A source close to the company said: “There was increasingly a difference of opinion between Alastair and Peter and they had a falling out.” Daniel Stewart is a City-based investment bank offering both corporate advisory and institutional stockbroking services that focus on small and mid-size companies
Daniel Stewart analyst Mike Stoddart, covering the carrier for the first time, gave the airline a 0p target price and advised investors to “sell at any price” because the airline was “doomed to fail”.
The move forced Silverjet to issue a trading update after the market closed last night while the firm’s house broker, Arden Partners, reiterated its buy recommendation as passenger numbers for the coming months had been boosted by recent discounts and the failure of rival Maxjet. In his note, Stoddart said Silverjet was operating at a loss because it was only able to half-fill its planes with passengers.
Stoddart told CityA.M. that Silverjet chief executive Lawrence Hunt was demanding a retraction but he was standing by his note. Hunt said Stoddart was an “absolute muppet” for publishing the note which was riddled with “schoolboy errors”.
Hunt denied the airline’s business model was in trouble as a result of soaring fuel costs, and said it was in a strong cash position, had sold 5,000 bookings last week and was trading in line with expectations.
MD of Daniel Stewart quits after dispute with chairman
ALASTAIR CADE, the managing director of broker Daniel Stewart Securities, has abruptly left the company after a dispute with chairman Peter Shea, writes Anusha Bradley.
In a statement yesterday, Shea said Cade was leaving after 12 years to pursue other interests, though it is understood he left on Thursday. A source said yesterday that colleague Hamish Dickson, head of equities at the firm, left on Friday after siding with Cade. A Daniel Stewart spokesman declined to comment on the matter or what the dispute concerned.
A source close to the company said: “There was increasingly a difference of opinion between Alastair and Peter and they had a falling out.” Daniel Stewart is a City-based investment bank offering both corporate advisory and institutional stockbroking services that focus on small and mid-size companies
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Whatever the reason for some of the posts made here regarding Silverjet or regardless of how much money people make as MDs of other organisations. I simply question why it is necessary to post comments that are negative about Silverjet unless there is an ulterior motive.
Why does it matter? I hope Silverjet and its employees do well.
Why does it matter? I hope Silverjet and its employees do well.
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Jaded- Sorry with 26 years in the industry I think I have! I was getting at the fact if S/jet are claiming £1100 per seat sold why do they need to sell to the industry at such low levels? If it were travel agent only deals fine but open to all the travel industry?? I know a lot of people who have flown with them so not so restricted as well? For every seat sold at £659 you need to charge the general public more than the £1100 to get your averages?
Whilst I wish Silverjet well I would not be so blinkered!
Whilst I wish Silverjet well I would not be so blinkered!
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It is becoming clear. I am sure that when Silverjet sell to the USA a return seat at Full price they get somewhere around £1060 on average. What is also clear is that they are selling lots of seats at £879 and quite a few at £659 including taxes to anyone who claims a industry discount. I am sure Mr Hunt add a few words when he speaks to the press that get dropped to give the wrong impression. Nowhere can I see Silverjet stating the £1100 figure in writing or giving a statement of exatctly what it is selling for "ALMOST" £1100.
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SilverJet
Are Silver Jet the next casualty? Doesn't look good to me.
Yesterday's trading: Silverjet in for crash-landing
Geoff Foster, Daily Mail
15 January 2008, 7:50am
Storm clouds hovered above Luton-based business class only airline Silverjet as its shares nosedived 14p to 35½p after Daniel Stewart said sell and put a zero price target on the stock.
It believes the group's business model will never work and the company will eventually run out of cash. It raised £12m in a placing at 60p in November. The broker forecasts a pretax loss of £31m for the year to end-March 2008 and a £27m deficit for 2009.
Silverjet's claim that it only needs to sell a certain number of seats to break-even was rubbished by Daniel Stewart which said that its figures do not account for additional costs, such as advertising, administration and depreciation.
These could be quite substantial and with jet fuel prices up around 16% and 'dire' current traffic levels, all airlines are having a rough time.
Yesterday's trading: Silverjet in for crash-landing
Geoff Foster, Daily Mail
15 January 2008, 7:50am
Storm clouds hovered above Luton-based business class only airline Silverjet as its shares nosedived 14p to 35½p after Daniel Stewart said sell and put a zero price target on the stock.
It believes the group's business model will never work and the company will eventually run out of cash. It raised £12m in a placing at 60p in November. The broker forecasts a pretax loss of £31m for the year to end-March 2008 and a £27m deficit for 2009.
Silverjet's claim that it only needs to sell a certain number of seats to break-even was rubbished by Daniel Stewart which said that its figures do not account for additional costs, such as advertising, administration and depreciation.
These could be quite substantial and with jet fuel prices up around 16% and 'dire' current traffic levels, all airlines are having a rough time.