SilverJet (Merged 30/05)
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It's not a robust business model, i'm sure the idea looked great, get a 100 people on each rotation, all paying £1000 each, EASY..... obviously not... time to go back to whats been making airlines money for years.... appeal to ALL for cheaper than your competitors!
Tick tock SilverJet
Tick tock SilverJet
Join Date: Mar 2007
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The CEO of Silverjet has always said that March will be the month they go into profit.
“Whilst we expect the group, in terms of operating cashflow, to absorb cash between the Placing and 31 March 2008, the Board continues to be confident that Silverjet will achieve its first month of pre tax profit and be cash generative in March 2008."
More on Silverjet's site. They released a lot of figures after 1st year of operation on Feb 5. See here:
http://www.flysilverjet.com/press-re...008-02-05.aspx
“Whilst we expect the group, in terms of operating cashflow, to absorb cash between the Placing and 31 March 2008, the Board continues to be confident that Silverjet will achieve its first month of pre tax profit and be cash generative in March 2008."
More on Silverjet's site. They released a lot of figures after 1st year of operation on Feb 5. See here:
http://www.flysilverjet.com/press-re...008-02-05.aspx
Join Date: Jun 2000
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Very bad press in the Mail on Sunday today for Silverjet.
Sorry to say but this Airline ain't going to be here in 2 months. When the money men don't want any share of the business it's time to run.
One thing that is certain, MOL got it wrong again. Now what did he say?
Bye Bye Sky Europe
Bye Bye Baby
I don't recall Bye Bye Silverjet.
I know, their not in the same market. But he still got it wrong.
Don't worry guys loads of jobs for Pilots. Just make sure you negotiate the right deal.
Sorry to say but this Airline ain't going to be here in 2 months. When the money men don't want any share of the business it's time to run.
One thing that is certain, MOL got it wrong again. Now what did he say?
Bye Bye Sky Europe
Bye Bye Baby
I don't recall Bye Bye Silverjet.
I know, their not in the same market. But he still got it wrong.
Don't worry guys loads of jobs for Pilots. Just make sure you negotiate the right deal.
Join Date: Jun 2000
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EasyJet to buy Silverjet????
NOT GOOD.......
LONDON (Thomson Financial) - Silverjet PLC is expected to announce this week that property tycoons the Reuben Brothers have pulled out of a plan to take a 20 pct stake in the business airline after its share price fell, the Sunday Times reported.
The Reubens loaned 10 mln stg to the Luton-based start-up in November and were due to have converted it into shares this week, at a planned 60 pence per share, the newspaper said.
However, they have reportedly decided to shelve plans for the stake after the airline's shares ended this week at 24 pence following its announcement on Tuesday that the number of revenue seats it flew in January was below its expectations. No-one from Silverjet was available to comment on Sunday, but the Sunday Times said the airline refused to comment yesterday.
Silverjet, which flies from Luton to New York Newark and Dubai, said it remained confident that it would achieve its first month of pretax profit and cash generation next month.
Speculation that Silverjet could become a takeover target for EasyJet PLC emerged after the business airline said last month that it had appointed Amir Eilon, a former board member of EasyJet and friend of the budget carrier's largest shareholder Stelios Haji-Ioannou, as a non-executive director.
LONDON (Thomson Financial) - Silverjet PLC is expected to announce this week that property tycoons the Reuben Brothers have pulled out of a plan to take a 20 pct stake in the business airline after its share price fell, the Sunday Times reported.
The Reubens loaned 10 mln stg to the Luton-based start-up in November and were due to have converted it into shares this week, at a planned 60 pence per share, the newspaper said.
However, they have reportedly decided to shelve plans for the stake after the airline's shares ended this week at 24 pence following its announcement on Tuesday that the number of revenue seats it flew in January was below its expectations. No-one from Silverjet was available to comment on Sunday, but the Sunday Times said the airline refused to comment yesterday.
Silverjet, which flies from Luton to New York Newark and Dubai, said it remained confident that it would achieve its first month of pretax profit and cash generation next month.
Speculation that Silverjet could become a takeover target for EasyJet PLC emerged after the business airline said last month that it had appointed Amir Eilon, a former board member of EasyJet and friend of the budget carrier's largest shareholder Stelios Haji-Ioannou, as a non-executive director.
Join Date: Sep 2003
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Who designed their seats, they are quite classy, but from the back they resemble those African wood sculptures with weird expressions http://www.airliners.net/photo/Silve...ER)/1293442/L/
Join Date: Feb 2008
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Ruebens Bros
What will the brother do next. The share price is heading for zero would they or are they able to call the loan in now? If this happens I guess its all over for Silverjet
Join Date: Dec 2006
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Silverjet today announces that TFB will not be converting its £10 million
convertible loan into new Silverjet ordinary shares at 60 pence per share.
As a result, TFB forgoes its conversion rights whilst Silverjet still benefits
from the £10 million loan on highly attractive terms of LIBOR plus 200bps until
it is repayable on 17 December 2009.
TFB said:
"Because of recent market conditions, we have decided not to exercise our right
to convert our loan to Silverjet into equity. Instead we will continue to work
with the company and monitor its performance going forward. We continue to
believe the company has a sound business model and excellent prospects for the
future to become a major player in the global aviation business."
convertible loan into new Silverjet ordinary shares at 60 pence per share.
As a result, TFB forgoes its conversion rights whilst Silverjet still benefits
from the £10 million loan on highly attractive terms of LIBOR plus 200bps until
it is repayable on 17 December 2009.
TFB said:
"Because of recent market conditions, we have decided not to exercise our right
to convert our loan to Silverjet into equity. Instead we will continue to work
with the company and monitor its performance going forward. We continue to
believe the company has a sound business model and excellent prospects for the
future to become a major player in the global aviation business."
I don't think that a £10m medium-term loan that the lender would not convert to equity can be described as something to "benefit from", because the presence of this effectively squelches anyone wanting to put more equity into the business, which now has to somehow find £10m, plus interest, in the next couple of years - which is why Silverjet wanted to turn it into equity in the first place.
This is certainly not good news. It means that the first £10m SJ gets hold of it needs to pay off a loan in 22 months' time.
If they can get their break-even in March, and not slip back into losses (not an easy task when additional aircraft are arriving and new routes being built up), they may get it looking good enough to raise some more capital some time next year.
I have been very impressed by the publicity SJ has received in its first year, not just in aviation-related media, but very widely. They seem to have a decent publicity machine, and it's this that will help them reach solvency, if they can afford to keep it up.
If they can get their break-even in March, and not slip back into losses (not an easy task when additional aircraft are arriving and new routes being built up), they may get it looking good enough to raise some more capital some time next year.
I have been very impressed by the publicity SJ has received in its first year, not just in aviation-related media, but very widely. They seem to have a decent publicity machine, and it's this that will help them reach solvency, if they can afford to keep it up.
Join Date: Aug 2005
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People, read the signs. It is as good as over.
As soon as whatever cash Silverjet have left runs out, the airline will fold.
It is totally uninvestable and has lost all credibility with the City and investors with it's poorly published statements.
It's over people. Smell the Coffee.
As soon as whatever cash Silverjet have left runs out, the airline will fold.
It is totally uninvestable and has lost all credibility with the City and investors with it's poorly published statements.
It's over people. Smell the Coffee.
Join Date: Oct 2006
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It does look like the writing is on the wall for Silverjet now.
Ironic that they could not wait to get rid of FlyJet, looks like they have shut an airline down that was not doing too bad and had a lot of potential in favour of SJ.
Not a good track record two airlines gone in one year.
I do feel sorry for the people that are working at SJ but none for the chief executive, especially after reading what he quoted in The Independent on 6th Feb
http://www.independent.co.uk/news/bu...in-778752.html
Lawrence Hunt, the chief executive, insisted that the 30 per cent drop in the shares was "not really material", and reaffirmed his projection that the business could reach break-even as soon as next month.
Investor doubts about the viability of a business-class-only carrier have risen since MAXjet filed for bankruptcy just before Christmas. However, Mr Hunt added: "We are now the lowest fare business class across the Atlantic, and now that MAXjet is gone they can't play suicidal pricing games anymore – MAXjet going bust was a great Christmas present."
Even if he thinks that it is not the thing to say.
Looks like he is getting his pr training from ML at Ryanair.
Ironic that they could not wait to get rid of FlyJet, looks like they have shut an airline down that was not doing too bad and had a lot of potential in favour of SJ.
Not a good track record two airlines gone in one year.
I do feel sorry for the people that are working at SJ but none for the chief executive, especially after reading what he quoted in The Independent on 6th Feb
http://www.independent.co.uk/news/bu...in-778752.html
Lawrence Hunt, the chief executive, insisted that the 30 per cent drop in the shares was "not really material", and reaffirmed his projection that the business could reach break-even as soon as next month.
Investor doubts about the viability of a business-class-only carrier have risen since MAXjet filed for bankruptcy just before Christmas. However, Mr Hunt added: "We are now the lowest fare business class across the Atlantic, and now that MAXjet is gone they can't play suicidal pricing games anymore – MAXjet going bust was a great Christmas present."
Even if he thinks that it is not the thing to say.
Looks like he is getting his pr training from ML at Ryanair.
Join Date: Aug 2000
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Every one adding the news today has missed one important part in the news release.
That the load factor for this month looks like it will be above 60%, which is getting very close to not operating at a loss.
That the load factor for this month looks like it will be above 60%, which is getting very close to not operating at a loss.
Join Date: Oct 2000
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It doesn't really seem fair - why is it that airlines such as Silverjet, that receive mostly good reports from pax about the overall service standards, and have a generally happy workforce, struggle? and airlines (I don't even need to mention the name) that show nothing but open contempt towards their pax and staff alike, flourish?
I sincerely hope that Silverjet get through this difficult patch.
I sincerely hope that Silverjet get through this difficult patch.
Join Date: Aug 2004
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SilverJet offers something unique to the aviation industry - which could be why the backing isnt there. They have only been going a year and I'm sure there is somebody out there who could give them the backing they need. However some changes might be a good idea to appeal to a bigger market -
1) Include a premium economy cabin, maybe a cabin of 60 Silver Class (Business) and 60 in Premium Economy. Charge a NYC rtn at £500 to appeal to the Virgin crowd in PE. Call yourself a premium class airline.
2) Start routes which will appeal to Business as well as to the Leisure market. Miami or Fort Lauderdale for the cruise market, Barbados for the winter sun etc or maybe charters to the Olympics? / Mauritius for Tour Ops.
3) Interlining in the states - B9? /
1) Include a premium economy cabin, maybe a cabin of 60 Silver Class (Business) and 60 in Premium Economy. Charge a NYC rtn at £500 to appeal to the Virgin crowd in PE. Call yourself a premium class airline.
2) Start routes which will appeal to Business as well as to the Leisure market. Miami or Fort Lauderdale for the cruise market, Barbados for the winter sun etc or maybe charters to the Olympics? / Mauritius for Tour Ops.
3) Interlining in the states - B9? /
Paxing All Over The World
I think the problem is, mainly, that they started too late in the economic cycle.
In 2000 and early 2001, Blue Fox (IIRC) were promoting the idea and PrivatAir was starting up. After the downturn from September 11th, there was too long a gap before Eos/Max/Silver started. It was then a matter of time to see when three would reduce to one.
In 2000 and early 2001, Blue Fox (IIRC) were promoting the idea and PrivatAir was starting up. After the downturn from September 11th, there was too long a gap before Eos/Max/Silver started. It was then a matter of time to see when three would reduce to one.
Join Date: Nov 2001
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Late delivery of airframes due to technical issues cannot have helped.
I am still at a loss as to why the need to take on additional aircraft and start up routes, both of which are costly in the short term.
Consolidation rather than expansion must be their goal?
The only other possible failure in their business plan is utilising old aircraft, but then if they had leased in newish equipment, the fares would be greater?
I am still at a loss as to why the need to take on additional aircraft and start up routes, both of which are costly in the short term.
Consolidation rather than expansion must be their goal?
The only other possible failure in their business plan is utilising old aircraft, but then if they had leased in newish equipment, the fares would be greater?
Join Date: Apr 2007
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I have flicked through some of the last post which seem to slate Silverjet.
They must be trying very hard to make it.
They took TOM airframe G-BYAA test flying today from MAN before they buy it, and they are possibly taking G-BYAB next month also.
They must be trying very hard to make it.
They took TOM airframe G-BYAA test flying today from MAN before they buy it, and they are possibly taking G-BYAB next month also.
Join Date: Jun 2000
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Usual Pprune pessimism 'Yawn'
Well said Fuel Boy.
Toledoashley above says they don't have the backing.
They do it is just that it makes no sense to convert the loan to shares at the present share price.
The present share price is heavily influenced by the general stock market conditions.
Silverjet was able to raise backing another company seemingly was not.
I shall never understand the way most on this forum are such pessimists and love talking companies down.
This one will make it. Wait & see.
I suggest that you Re Read the TFB quote by ATMOSPHERE above
Toledoashley above says they don't have the backing.
They do it is just that it makes no sense to convert the loan to shares at the present share price.
The present share price is heavily influenced by the general stock market conditions.
Silverjet was able to raise backing another company seemingly was not.
I shall never understand the way most on this forum are such pessimists and love talking companies down.
This one will make it. Wait & see.
I suggest that you Re Read the TFB quote by ATMOSPHERE above
Join Date: Jan 2008
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It's not a robust business model, i'm sure the idea looked great, get a 100 people on each rotation, all paying £1000 each, EASY..... obviously not...
Standard fare can be £1,900 rtn.
FLEXIBLE fare starts £2,200 rtn.
On some late notice dates ONLY FLEXIBLE fares left or made availble.
Assuming 75K rotational cost - does not mean 75%LF needed to breakeven as you might suggest.
Its also a very quiet period for LON-NY. Zoom Airlines UK have stopped operating their scheduled service during this period - 60%LF in Feb for SIL sounds quite good! Market picks up again from March into April.
One of the two new additions will be needed to cover a C check as detailed in a recent trade report.