SilverJet (Merged 30/05)
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My thinking takes me to a corperate shuttle operation. Oil companies have money to burn...
Wild speculation of course but a US, UK, Middle East operation fits for the majority of multinational oil interests. Failing that Pharmaceuticals (GSk perhaps?).
Wild speculation of course but a US, UK, Middle East operation fits for the majority of multinational oil interests. Failing that Pharmaceuticals (GSk perhaps?).
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Point to point all business class, either full service or so called low cost, is apparently not a viable business model.
MaxJet have ceased trading.
EOS appear to be heading south, according to their filed data, without further capital injection
SilverJet appear to be in a similar position.
Not one cent of EBIT contribution appears to have been made on the back of around $400,000,000 of investment during a period of the biggest economic growth in recent history.
In 2008, a few new challenges exist for possible investors to consider:
A US dollar that has devalued by 30% (probably about 50% of revenues) and a UK Pound (the other 50%) that is going partly in the same direction.
The biggest increase in transatlantic capacity in the last two decades thanks to US/EU liberalisation that came into force this month
This new capacity is offered by global players with global FFPs, global corporate agreements, and the muscle to discount right back to SilverJet yields if needed.
A US/EU economy that is slowing towards a probable resession (see March 2008 US EU traffic data for the first signs in this industry)
On the basis of simple return on investment measured at EBIT level of the current business model(s), further educated and considered investment appears to be futile.
MaxJet have ceased trading.
EOS appear to be heading south, according to their filed data, without further capital injection
SilverJet appear to be in a similar position.
Not one cent of EBIT contribution appears to have been made on the back of around $400,000,000 of investment during a period of the biggest economic growth in recent history.
In 2008, a few new challenges exist for possible investors to consider:
A US dollar that has devalued by 30% (probably about 50% of revenues) and a UK Pound (the other 50%) that is going partly in the same direction.
The biggest increase in transatlantic capacity in the last two decades thanks to US/EU liberalisation that came into force this month
This new capacity is offered by global players with global FFPs, global corporate agreements, and the muscle to discount right back to SilverJet yields if needed.
A US/EU economy that is slowing towards a probable resession (see March 2008 US EU traffic data for the first signs in this industry)
On the basis of simple return on investment measured at EBIT level of the current business model(s), further educated and considered investment appears to be futile.
Last edited by flying brain; 18th Apr 2008 at 12:01.
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There must be more money in (Y) class to places such as LAS
why not just change the business model.
This Business class thing is just not working and never will.
why not just change the business model.
This Business class thing is just not working and never will.
Join Date: Nov 2003
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thepcman
Whilst everyone is allowed an opinion in this forum, may i please remind you the use of names is not encouraged. A person trying to do their job for the best of a company may not always be liked and of course change isnt ever welcomed by all.......................even if it is in the interest of the company and employees long term.
Currently all at Silverjet are working as one big TEAM and will continue to do so.
Currently all at Silverjet are working as one big TEAM and will continue to do so.
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EOS published capitalisation vs. extrapolation of DoT filings.
For the 1st three quarters of 2007 EOS appears to have had a operating loss of $38.9m (-66.5% margin) on $58.5m in revenue.
Pre-tax income appears to be negative $37.5m (-64%) and net income appears to be the same.
For the 1st three quarters of 2007 EOS appears to have had a operating loss of $38.9m (-66.5% margin) on $58.5m in revenue.
Pre-tax income appears to be negative $37.5m (-64%) and net income appears to be the same.
Last edited by flying brain; 12th Apr 2008 at 12:31.
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Very small operators like MaxJet, SilverJet and EOS must spread costs, including fuel and significant overhead, over a tiny number of seats and passengers.
The economics on paper and apparently in reality simply don't work out, even in the best market in living memory, let alone with the emerging serious market challenges.
An airline's ability to stay in business without making a profit is a function of how long it can raise 'dumb' money to fuel the losses.
The economics on paper and apparently in reality simply don't work out, even in the best market in living memory, let alone with the emerging serious market challenges.
An airline's ability to stay in business without making a profit is a function of how long it can raise 'dumb' money to fuel the losses.
Last edited by flying brain; 12th Apr 2008 at 17:37.
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SilverJet this morning claiming talks with Lufthansa and Bland group but talks 'only at exploratory stages'. (Sunday Times)
Lufthansa is a bold claim, as they could use their own fleet or PrivatAir to develop open skies in Europe without spending one euro cent on SilverJet, who have the wrong aircraft and capacity to begin with.
Lufthansa is a bold claim, as they could use their own fleet or PrivatAir to develop open skies in Europe without spending one euro cent on SilverJet, who have the wrong aircraft and capacity to begin with.
Last edited by flying brain; 13th Apr 2008 at 06:56.
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Well it gives LH a brand for the long-haul all business concept. I cant however see this working from Luton - some kind of slot share out of LHR seems the most logical. A tie-up with B6 in the states (with a move to JFK?), prospect looks interesting.
Not sure where Bland would fit in, cant really see a tie up with Cadogan unless they moved into a more long haul, high end holiday concept.
Not sure where Bland would fit in, cant really see a tie up with Cadogan unless they moved into a more long haul, high end holiday concept.
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Agreed. An interesting idea but still a "longshot" methinks. However, whichever way you look at it, one can't help feeling, at least as far as LTN is concerned, Silverjet's days are numbered. A few more stands suddenly become available......
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Both sound to me like very wishful thinking on the part of Silverjet. One meeting could - I suppose - constitute "having talks". You wonder whether there is a bidder or whether the whole thing is a ruse to talk up their share price or to persuade anyone who might conceivably be interested to show their hand.
Is the Sunday Times bit correct about the expansion having been put on hold due to CAA finance limits?
Is the Sunday Times bit correct about the expansion having been put on hold due to CAA finance limits?
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Only my personal opinion. But this is a good chance to mop up a lovely short term profit.
Sell this outfit short any way you can.
I just can't see a buyer paying 20p a share for this Dog. It has Fleas.
But, seriously, where would a buyer come from? What are they buying (a brand that has never made money and will soon be forgotten)? And the use of a terminal at a Regional Airport.....and a couple of leases on ancient 767-200's? Hardly mouth watering.
Can't see it myself. It's a shame, but the world has changed. Money is expensive and Silverjet won't raise any more without fresh Equity input from a White Knight. It's do or die shortly I think for this idea.
A buyer could emerge, but it may be at a VERY VERY depressed price. Still,that's the stock market game isn't it?
(All this written from my perspective as a former Stock Market Market Maker. I may be wrong, but this would be my view on this one.)
20p is far too high.
Sell this outfit short any way you can.
I just can't see a buyer paying 20p a share for this Dog. It has Fleas.
But, seriously, where would a buyer come from? What are they buying (a brand that has never made money and will soon be forgotten)? And the use of a terminal at a Regional Airport.....and a couple of leases on ancient 767-200's? Hardly mouth watering.
Can't see it myself. It's a shame, but the world has changed. Money is expensive and Silverjet won't raise any more without fresh Equity input from a White Knight. It's do or die shortly I think for this idea.
A buyer could emerge, but it may be at a VERY VERY depressed price. Still,that's the stock market game isn't it?
(All this written from my perspective as a former Stock Market Market Maker. I may be wrong, but this would be my view on this one.)
20p is far too high.
Last edited by stansdead; 13th Apr 2008 at 14:27. Reason: spelling
Join Date: Jun 2002
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Why would Lufthansa buy Silverjet rather than do it themselves or use Privatair??
Maybe you all should come down to Luton and see what a Slick operation Silverjet is and how happy the Customers are when they disembark.
I'll give you 5 reasons for starters...
1. It's not like any other airline (as far as customer service is concerned its an amazing Product for the ticket price)
2. Cost Base is extremely low
3. The Aircraft is the Right one! (Very realiable and 100 seats is just right for the service)
4. It would be a bargain to buy right now due to the low share price (Thanks Muppett)
5. Very close to making a profit last month... probably will this month.
I dont understand why so many people want Silverjet to fail... We are a BRITISH Airline employing British people. Yes times are tough and there will be some Airlines going bust or merging this year. All I can say is that from what I have heard and what I have seen on the aircraft... Silverjet is going to be just fine.
PS. The only thing I know about Lufthansa possibly buying Silverjet was what I read in the Times.
Maybe you all should come down to Luton and see what a Slick operation Silverjet is and how happy the Customers are when they disembark.
I'll give you 5 reasons for starters...
1. It's not like any other airline (as far as customer service is concerned its an amazing Product for the ticket price)
2. Cost Base is extremely low
3. The Aircraft is the Right one! (Very realiable and 100 seats is just right for the service)
4. It would be a bargain to buy right now due to the low share price (Thanks Muppett)
5. Very close to making a profit last month... probably will this month.
I dont understand why so many people want Silverjet to fail... We are a BRITISH Airline employing British people. Yes times are tough and there will be some Airlines going bust or merging this year. All I can say is that from what I have heard and what I have seen on the aircraft... Silverjet is going to be just fine.
PS. The only thing I know about Lufthansa possibly buying Silverjet was what I read in the Times.
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OpsIdiditagain
"It's not like any other airline (as far as customer service is concerned its an amazing Product for the ticket price)" Yeah, a product that costs more than they sell it for.
"Will probably make a profit this month".....
Are you the PR department?
Good luck, I hope you know what you are on about.
Should I fill my boots with their really cheap shares?????? Please help me. I have money to burn.
"It's not like any other airline (as far as customer service is concerned its an amazing Product for the ticket price)" Yeah, a product that costs more than they sell it for.
"Will probably make a profit this month".....
Are you the PR department?
Good luck, I hope you know what you are on about.
Should I fill my boots with their really cheap shares?????? Please help me. I have money to burn.
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Ops!
I would guess that almost everyone wishes Silverjet the best at an emotional level. Personally I hope it all works out well for you and the whole team.
However objectively I think you would agree that some people appear to have reservations regarding the business model on the basis of the financial results and the ongoing repeated fundraising.
I would guess that almost everyone wishes Silverjet the best at an emotional level. Personally I hope it all works out well for you and the whole team.
However objectively I think you would agree that some people appear to have reservations regarding the business model on the basis of the financial results and the ongoing repeated fundraising.
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There is no question that Silverjet provides excellent service for what customers pay for it. There is every question that the service can be viably provided for what customers pay for it, and that remains to be proven. So far, it hasn't been - by quite a big margin.
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Well thanks for the Goodluck guys... We will prove the doomsayers wrong!!
I guess the people that do realise what a little gem of an airline Silverjet is dont post on pprune on a Sunday Night!
Im going to have a pprune break now... See ya'll in a few weeks!
Ops!
I guess the people that do realise what a little gem of an airline Silverjet is dont post on pprune on a Sunday Night!
Im going to have a pprune break now... See ya'll in a few weeks!
Ops!