SilverJet (Merged 30/05)
Paxing All Over The World
Max Tow is right. It is all about cash flow. If they can keep the cash flowing in sufficient quantities during this turn down (recession), then they will survive.
LTN is a very good place for this kind of service, I suggest, as it enables them to catch North London, as well as the Northern Home Counties and up towards BHX. I wish them well.
LTN is a very good place for this kind of service, I suggest, as it enables them to catch North London, as well as the Northern Home Counties and up towards BHX. I wish them well.
Colegate -
You are wrong to suggest that "all the money has to be repaid". Money used to buy shares is not a loan. The investor expects to make a return on it, in terms of dividend and/or capital growth. If they want their money back, they go to the Stock Exchange and sell their shares. The demand/supply of the shares determines the price. (Economics 101).
Silverjet has raised much of its finance in the way of share capital. I'm sure the Middle East investors are looking for capital growth, and must therefore be in it for the long term. Of course, the business must be cash-generative before it spends all the proceeds of the share issue, but it would appear that SJ is close to that point (but did not reach it in March, as originally promised).
LH promised to be cash-generative by March at the end of 2007, after which there were substantial further increases in fuel prices, so there is no reason to suggest that he was being disingenuous when he made that commitment. Building a business like SJ takes time, during which you have to build brand and reputation. They seem to be doing extremely well at that. You could say that the start-up losses represent investment in developing the brand.
I hope they survive.
You are wrong to suggest that "all the money has to be repaid". Money used to buy shares is not a loan. The investor expects to make a return on it, in terms of dividend and/or capital growth. If they want their money back, they go to the Stock Exchange and sell their shares. The demand/supply of the shares determines the price. (Economics 101).
Silverjet has raised much of its finance in the way of share capital. I'm sure the Middle East investors are looking for capital growth, and must therefore be in it for the long term. Of course, the business must be cash-generative before it spends all the proceeds of the share issue, but it would appear that SJ is close to that point (but did not reach it in March, as originally promised).
LH promised to be cash-generative by March at the end of 2007, after which there were substantial further increases in fuel prices, so there is no reason to suggest that he was being disingenuous when he made that commitment. Building a business like SJ takes time, during which you have to build brand and reputation. They seem to be doing extremely well at that. You could say that the start-up losses represent investment in developing the brand.
I hope they survive.
Join Date: Oct 2006
Location: UK
Posts: 11
Likes: 0
Received 0 Likes
on
0 Posts
Silverjet start up - Its great service and has money high share price.
Silverjet runs low - low share price, in need of capital
Silverjet gets backing, its great woooohooo higher share price
Silverjet runs low - low share price, in need of capital
Silverjet gets backing, its great woooohoooo higher share price
so on so on so on Only so many times they will get help. LTN is a great base for the business idea, but with the current times people can fly the same routes with comfort at much lower prices.
You can fly with flyzoom for as little as £90 premium 36" seat pitch full meal service all drinks included from London Gatwick - New york JFK.
or £40 economy with 32" seat pitch and again with full meal serivces and drinks included.
Delta Airlines economy £115 etc etc
I do work for Silverjet but very worried about the future with the current economy its very unsecure for SJ.
Silverjet runs low - low share price, in need of capital
Silverjet gets backing, its great woooohooo higher share price
Silverjet runs low - low share price, in need of capital
Silverjet gets backing, its great woooohoooo higher share price
so on so on so on Only so many times they will get help. LTN is a great base for the business idea, but with the current times people can fly the same routes with comfort at much lower prices.
You can fly with flyzoom for as little as £90 premium 36" seat pitch full meal service all drinks included from London Gatwick - New york JFK.
or £40 economy with 32" seat pitch and again with full meal serivces and drinks included.
Delta Airlines economy £115 etc etc
I do work for Silverjet but very worried about the future with the current economy its very unsecure for SJ.
Join Date: Oct 2007
Location: England
Age: 59
Posts: 516
Likes: 0
Received 0 Likes
on
0 Posts
Whilst I would not like to see any airline fail
its surely worrying that similar models have
failed from another North London airfield (STN) in the
last few months,leading everyone to question
Silverjets viability.
The fact that they have been given financial
support recently means that their finances needed
to be 'helped' which is not the sign to a good
future given the economic downturn now apparent.
Although some might suggest that Silverjet is
different in many ways to Maxjet/Eos basic economics
(ie Maths) in the end will rule.
However clever accountants are, they tend to only
put off the result not effect the result.
The pressure to get bums on seats is now more
heated than ever with the advent of open skies.
Having a superior product is important but if everyone
is competing then the more financially fragile will in the
end die.
The fact that American carriers can hide from certain
pressures with chapter11 gives an advantage to them.
The investors of Silverjet must know something/be
clever accountants/see an opportunity/or have faith
in the business model/or have too much money in their
accounts!
In a recession choices receed in all spheres of this society.
Capitalism has made it so.
MM
its surely worrying that similar models have
failed from another North London airfield (STN) in the
last few months,leading everyone to question
Silverjets viability.
The fact that they have been given financial
support recently means that their finances needed
to be 'helped' which is not the sign to a good
future given the economic downturn now apparent.
Although some might suggest that Silverjet is
different in many ways to Maxjet/Eos basic economics
(ie Maths) in the end will rule.
However clever accountants are, they tend to only
put off the result not effect the result.
The pressure to get bums on seats is now more
heated than ever with the advent of open skies.
Having a superior product is important but if everyone
is competing then the more financially fragile will in the
end die.
The fact that American carriers can hide from certain
pressures with chapter11 gives an advantage to them.
The investors of Silverjet must know something/be
clever accountants/see an opportunity/or have faith
in the business model/or have too much money in their
accounts!
In a recession choices receed in all spheres of this society.
Capitalism has made it so.
MM
Join Date: Nov 2005
Location: UK Home Counties
Posts: 338
Likes: 0
Received 0 Likes
on
0 Posts
Silverjet Bale-out
http://www.ft.com/cms/s/0/e189ff3e-1...nclick_check=1
Let's hope (i) it's approved by the CAA's ERG and (ii) it enables Silverjet to ride out the current financial storm.
Let's hope (i) it's approved by the CAA's ERG and (ii) it enables Silverjet to ride out the current financial storm.
Join Date: Feb 2008
Location: Birmingham
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
everytime that Silverjet puts out new spin the share price goes up for a few days and then goes back. The reality is that there is very little information in the public domain. The ticket prices are going up in the short term but a lot depends on their plans. Adding extra planes would mean more seats to fill.
Join Date: Nov 2001
Location: London Whipsnade Wildlife Park
Posts: 5,039
Likes: 0
Received 0 Likes
on
0 Posts
A neighbour of mine who works for a 'very well known' UK based company was disgusted to find that his normal ' world famous transatlantic airline' was not being used for normal business activities to New York. Instead they had the audacity to book him on Silverjet.
He came to ask me my opinion. I was none too impressed that they (Silverjet) had omitted to name their first plane 'Buster' however, I reassured him that he would enjoy his time flying with them.
This evening my front door was nearly beaten down by this same neighbour.....ABSOLUTELY.......singing Silverjet's praises. So impressed, he has booked the family for a weekend away in Dubai!
Realistically, until they name one of their aircraft 'BUSTER THE BEAR' in recognition of my services to Luton Airport, they are doomed! (Only joking about the doomed bit, only many hope they will fail and I was winding them all up)!
He came to ask me my opinion. I was none too impressed that they (Silverjet) had omitted to name their first plane 'Buster' however, I reassured him that he would enjoy his time flying with them.
This evening my front door was nearly beaten down by this same neighbour.....ABSOLUTELY.......singing Silverjet's praises. So impressed, he has booked the family for a weekend away in Dubai!
Realistically, until they name one of their aircraft 'BUSTER THE BEAR' in recognition of my services to Luton Airport, they are doomed! (Only joking about the doomed bit, only many hope they will fail and I was winding them all up)!
Join Date: Apr 2008
Location: london
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
Thanks for sharing that with us, Buster.
I don't know if any of you peeps have seen this, published this morning:
http://sev.prnewswire.com/airlines-a...4052008-1.html#
Confidence in Silverjet is riding high...I too am now confident enough to book onward travel for my New York trip in July.
I don't know if any of you peeps have seen this, published this morning:
http://sev.prnewswire.com/airlines-a...4052008-1.html#
Confidence in Silverjet is riding high...I too am now confident enough to book onward travel for my New York trip in July.
Join Date: Aug 2005
Location: uk
Posts: 516
Likes: 0
Received 0 Likes
on
0 Posts
Honest Frank,
Can I not come and play on your Simulator in your garden shed/garage? More fun than roads.
Share price has been stellar since the financial input. Up 3 p.
I soooo wish I had bought loads and loads of them. The sky is the limit truly with this stock.
Quick, where did I put my broker's number............
Can I not come and play on your Simulator in your garden shed/garage? More fun than roads.
Share price has been stellar since the financial input. Up 3 p.
I soooo wish I had bought loads and loads of them. The sky is the limit truly with this stock.
Quick, where did I put my broker's number............
Join Date: Apr 2008
Location: london
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
Since Dubai is going to be the new hub for Silverjet's expansion, Mr Hunt is attending conferences from today to 9th May in Dubai meeting with interested parties.
Edit: FAO "Couldn't Think of An..."
No, I'm not a SIL PR person, not have any pecuniary interest in Silverjet. I am a future passenger, having booked return flights to EWR in July. And the information I gave is freely available to anyone else who does internet research here: http://www.albawaba.com/en/countries/UAE/227005
I guess we'll be hearing about more exciting developments for Silverjet
within the next few days.
Of course, because the new investor has the rights to 28% of the total shares, the remaining shares become diluted and this impacts of the shares worth in real terms...according to a quant. analyst I was talking to...all very mathematical apparently.
Edit: FAO "Couldn't Think of An..."
No, I'm not a SIL PR person, not have any pecuniary interest in Silverjet. I am a future passenger, having booked return flights to EWR in July. And the information I gave is freely available to anyone else who does internet research here: http://www.albawaba.com/en/countries/UAE/227005
I guess we'll be hearing about more exciting developments for Silverjet
within the next few days.
Of course, because the new investor has the rights to 28% of the total shares, the remaining shares become diluted and this impacts of the shares worth in real terms...according to a quant. analyst I was talking to...all very mathematical apparently.
Last edited by annnee; 7th May 2008 at 15:45.
Join Date: Nov 2001
Location: London Whipsnade Wildlife Park
Posts: 5,039
Likes: 0
Received 0 Likes
on
0 Posts
No doubt folk on here will be stating that Viceroy are mad and need locking up!
Securing long-term finance is the key to success. Looks like Silverjet has achieved this!
Anyway, I am still smarting from the fact that Silverjet have ignored Luton's most influential bear....so far!
Securing long-term finance is the key to success. Looks like Silverjet has achieved this!
Anyway, I am still smarting from the fact that Silverjet have ignored Luton's most influential bear....so far!
Join Date: Apr 2008
Location: london
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
Taken from a Silverjet thread on an investment forum
And with the new investment from Viceroy, they are being encouraged to increase the number of planes they have.
Oh...almost forgot; here's another post on the same forum contributions of today's date.
http://us.ft.com/ftgateway/superpage...5032855&page=2
Went to NY this weekend for work (Cheapest Business class is now corporate policy). Planes was full. good sevice...Very good value for money.
It is all a number game... they need more planes
It is all a number game... they need more planes
Oh...almost forgot; here's another post on the same forum contributions of today's date.
From FT:
At stockbroker Panmure Gordon, for example, staff are taking public transport rather than taxis to meetings around London and senior managers have switched from British Airways business class to Silverjet, the budget premium airline, for trips to New York. "Q1 has been tough for all the brokers and we're all tightening our belts," a spokesman said.
At stockbroker Panmure Gordon, for example, staff are taking public transport rather than taxis to meetings around London and senior managers have switched from British Airways business class to Silverjet, the budget premium airline, for trips to New York. "Q1 has been tough for all the brokers and we're all tightening our belts," a spokesman said.
Join Date: Feb 2008
Location: Birmingham
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
What shareholders have been told
from circular to shareholder (see rule 26 section in Silverjets investors pages on website)
Reasons for the Loan Facility and Subscription and use of proceeds
On 23 November 2007, Silverjet raised gross proceeds of £22.0 million, comprising a placing of Ordinary Shares to raise £12.0 million and a £10.0 million convertible loan from TFB (the “2007 Fund Raising”). TFB subsequently elected not to convert the loan, which continues to attract interest at 2 per cent over LIBOR and is repayable on 17 December 2009.
On 5 February 2008, Silverjet announced that the growth in passenger statistics had not been as high as hoped and that subsequent bookings were unlikely to make up the shortfall in the financial year ended 31 March 2008. Since then, in light of the airline sector becoming increasingly challenging, a rival all business class airline filing for bankruptcy and negative research being published on Silverjet, a number of travel agents and customers have temporarily suspended booking with Silverjet. Against this background, the Board now estimates that revenue between the 2007 Fund Raising and 31 March 2008 was approximately £7.3 million lower than projected at the time of the 2007 Fund Raising. The Group has also been impacted by increases in maintenance, marketing, fuel and other costs relative to its earlier projections.
Also, Silverjet incurred final expenditure of approximately £2.0 million in closing the Flyjet operation in excess of that included in the projections.
In addition to the above, following the recent press coverage of Silverjet and the significant decline in its share price, the Group has been under pressure to pay its suppliers increasingly promptly and has been impacted by the tightening of credit conditions in the airline industry. This, together with a number of other working capital items, has increased calls on the Company’s cash as at 31 March 2008 by approximately £4.4 million, relative to the projections at the time of the 2007 Fund Raising.
On 30 April 2008, Silverjet announced that, following recent material increases in fuel prices and tightening of credit conditions in the airline industry, its working capital had deteriorated and its working capital reserves were limited.
Against this background, the Directors believe that the Subscription and Loan Facility announced today will provide Silverjet with the necessary finance to restore its working capital and enable it to continue to develop its business.
On 2 May 2008, Silverjet delivered a notice of draw down for approximately £2.5 million under the Loan Facility.
Reasons for the Loan Facility and Subscription and use of proceeds
On 23 November 2007, Silverjet raised gross proceeds of £22.0 million, comprising a placing of Ordinary Shares to raise £12.0 million and a £10.0 million convertible loan from TFB (the “2007 Fund Raising”). TFB subsequently elected not to convert the loan, which continues to attract interest at 2 per cent over LIBOR and is repayable on 17 December 2009.
On 5 February 2008, Silverjet announced that the growth in passenger statistics had not been as high as hoped and that subsequent bookings were unlikely to make up the shortfall in the financial year ended 31 March 2008. Since then, in light of the airline sector becoming increasingly challenging, a rival all business class airline filing for bankruptcy and negative research being published on Silverjet, a number of travel agents and customers have temporarily suspended booking with Silverjet. Against this background, the Board now estimates that revenue between the 2007 Fund Raising and 31 March 2008 was approximately £7.3 million lower than projected at the time of the 2007 Fund Raising. The Group has also been impacted by increases in maintenance, marketing, fuel and other costs relative to its earlier projections.
Also, Silverjet incurred final expenditure of approximately £2.0 million in closing the Flyjet operation in excess of that included in the projections.
In addition to the above, following the recent press coverage of Silverjet and the significant decline in its share price, the Group has been under pressure to pay its suppliers increasingly promptly and has been impacted by the tightening of credit conditions in the airline industry. This, together with a number of other working capital items, has increased calls on the Company’s cash as at 31 March 2008 by approximately £4.4 million, relative to the projections at the time of the 2007 Fund Raising.
On 30 April 2008, Silverjet announced that, following recent material increases in fuel prices and tightening of credit conditions in the airline industry, its working capital had deteriorated and its working capital reserves were limited.
Against this background, the Directors believe that the Subscription and Loan Facility announced today will provide Silverjet with the necessary finance to restore its working capital and enable it to continue to develop its business.
On 2 May 2008, Silverjet delivered a notice of draw down for approximately £2.5 million under the Loan Facility.
Join Date: Apr 2008
Location: london
Posts: 32
Likes: 0
Received 0 Likes
on
0 Posts
Don't panic David.
Shareholders with lots of experience are not disheartened by this circular informing of the Extraordinary General Meeting on 30th May to vote on the offer from Viceroy Holdings. Here's the notification to shareholders in its entirety.
advert link
See the shareholders posts on this Investors forum
http://www.iii.co.uk/investment/deta...it=le&pageno=1
Mind you, like this forum, there are members who have their own agenda so you have to read between the lines to seek out the contributors intent.
Shareholders with lots of experience are not disheartened by this circular informing of the Extraordinary General Meeting on 30th May to vote on the offer from Viceroy Holdings. Here's the notification to shareholders in its entirety.
advert link
See the shareholders posts on this Investors forum
http://www.iii.co.uk/investment/deta...it=le&pageno=1
Mind you, like this forum, there are members who have their own agenda so you have to read between the lines to seek out the contributors intent.
Join Date: Feb 2008
Location: Birmingham
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
Hi Annnee,
If we go to your EGM (I assume you are part of Silverjet management) can we ask questions? Were did all the last £22million go, as we have not got two extra planes? Do we atleast have a chance to get one of them so we can cover periods of 'C' Checks and run a few extra sectors.
If we go to your EGM (I assume you are part of Silverjet management) can we ask questions? Were did all the last £22million go, as we have not got two extra planes? Do we atleast have a chance to get one of them so we can cover periods of 'C' Checks and run a few extra sectors.
Join Date: Feb 2008
Location: Birmingham
Posts: 19
Likes: 0
Received 0 Likes
on
0 Posts
management cull
The 3/5ths of management have just been deleated from the silverjet website.
Martyn Bridger, katherleen Gershot and Goirge Henderson are removed.
From reading round news reports the whole level of management has been culled. That must save Silverjet a few grand per week.
Is Annnee still in a job or have you been moved up to head of PR?
Oil has just crossed $130/barrel in asia. This does not seem to be a time to expand.
Martyn Bridger, katherleen Gershot and Goirge Henderson are removed.
From reading round news reports the whole level of management has been culled. That must save Silverjet a few grand per week.
Is Annnee still in a job or have you been moved up to head of PR?
Oil has just crossed $130/barrel in asia. This does not seem to be a time to expand.
Join Date: Nov 2001
Location: 1000ft above you, giving you the bird!
Posts: 579
Received 0 Likes
on
0 Posts
on my dubai last week there was only 18 pax outbound and 11 back...... big a/c, big miles, fuel @ $130 a barrel - mmmmmmm!!!!! 
big very, very deep pockets required...... what was interesting was the person i was chatting to didnt know the airline existed until his pa told him..... maybe a bit more marketing outside of London may help???
big very, very deep pockets required...... what was interesting was the person i was chatting to didnt know the airline existed until his pa told him..... maybe a bit more marketing outside of London may help???