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SilverJet (Merged 30/05)

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SilverJet (Merged 30/05)

Old 10th Apr 2006, 09:24
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SilverJet (Merged 30/05)

http://www.breakingnews.ie/2006/04/10/story253402.html
Travel veterans unveil transatlantic plans
10/04/2006 - 10:04:06
A new airline today announced plans to raise £25m (€36m) for the launch of a low-fares operation serving New York-bound business class travellers from the UK.
Silverjet intends to run a Luton to Newark route with a low-cost airline model similar to that of short-haul airlines, such as Ryanair and easyJet.
The company will raise funds for the venture through a listing on the Alternative Investment Market (AIM) in May and will launch its service six to nine months later.
Chief executive Lawrence Hunt, who has been working on developing the business for two years, believed the service could revolutionise the long haul business class market.
Fares will be substantially less than existing fares for business class travel and below current average premium economy travel with average return fares around £999 (€1,400), he said.
This compares to current prices for a flat-bed business class service of between £2,500 (€3,600) and £5,000 (€7,200).
The management team includes chairman Peter Owen, who was at British Airways for 21 years and customer experience director Martyn Bridger, who was head of in-flight services for BA where he worked for 24 years.
John Bavister, formerly at Thomas Cook, takes on the role of finance director and Peter Evans who was head of operations at Virgin Atlantic is the operations director. Dave Simmons, sales and marketing director, has set up marketing programmes for Ryanair, BA and American Airlines.
Mr Hunt, who has been involved in six start-up businesses since 1984, said customers would be offered a full business class service. All 100 seats will have inclined flat beds and there will be significantly reduced check-in times, as little as 30 minutes, he said.
The service will operate between Luton and Newark Liberty International airport.
Following the float, Mr Hunt will own a 10% stake in the business while a further 10% will be owned by the other five members of the management team.
The first all-business airline offering low-cost fares, US-based MAXjet, launched in November 2005 and flies between London and New York and London and Washington.
Mr Hunt said it was possible to reduce prices as they were not offering economy seats.
“Bigger companies make most if not all of their profits from premium customers and lose money in economy. Business class travel is subsidising economy travel.”
By losing the economy seats prices can come down without any compromise in service, he said.
Within three years, Silverjet intends to operate a fleet of 10 aircraft, all with flat beds.
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Old 10th Apr 2006, 09:44
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Well if anyone knowledgeable at AIM (and there are a few) finds an investment proposition which aims for
Within three years, Silverjet intends to operate a fleet of 10 aircraft, all with flat beds.
by
a low-cost airline model similar to that of short-haul airlines, such as Ryanair and easyJet.
they will soon be sent away with a flea in their ear.
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Old 10th Apr 2006, 13:35
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Essentially what they are proposing is a Maxjet lookalike, but from Luton to Newark, with angled flat beds rather than cradle seats, and initially two flights a day (thus morning and afternoon departures from London). Like Maxjet, they propose to operate 767-200s with 100-odd seats.

Their analysis of available fares on websites over recent months apparently suggests that Maxjet is doing OK and Eos isn't (I summarise).

It seems to me that if you're Maxjet and you want to nip this in the bud, you simply have to announce a seat upgrade (I say "simply"; I know they're expensive, but I have to assume Maxjet had planned for this sooner or later - maybe BA would sell them their existing Club World flat-bed seats when they're taken out? ). Oh, and perhaps a second daily flight.

WHBM: my reading of the "low-cost airline model similar to that of other short-haul airlines" is that it's sloppy journalism - pretty much the only bit of that model that these guys are taking (unless you count a single aircraft type, though with a fleet of up to 10 that's not really a major innovation) is the time-driven pricing, i.e. book 2 months out and you'll get to New York for £99, book the day before and it'll be £1500. That's common by now for a lot of short-haul carriers, but - if I'm not mistaken - transatlantic business class hasn't got this kind of pricing model yet.
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Old 10th Apr 2006, 16:55
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I noticed some poster adverts for MaxJet in the City this weekend, but I've not seen any Eos ads.

This one will have the advantage of a more convenient UK airport, closer to London and with a bigger catchment area. I like the idea of dynamic pricing on a business-class model too.

Best of luck to them
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Old 10th Apr 2006, 17:40
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Every time I have passed through JFK in recent weeks (about 4 times) I see an Eos 757 parked at some distant stand, looking rather lonely. I understand the point about a standby airframe, but that's some big overhead piling up.
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Old 10th Apr 2006, 18:05
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Is Silverjet a relation to the proposed airline Tara?
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Old 10th Apr 2006, 19:58
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Grrr

I wonder if the operators of Luton airport have been consulted yet?
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Old 10th Apr 2006, 20:20
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Devil

I worked for an airline that Mr M. Bridger was assosiated with (strangely enough doesn't seem to be mentioned in his above C.V.) that went bust after 6 months of operating. Hundreds of people out of work and people out of pocket. I understand that Mr M. Bridger was the cause of the cabin crew strike at British Airways some years ago.
Will be interesting to see how long this airline survives if it even gets off the ground.
I'm not bitter and twisted - honest!!!
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Old 10th Apr 2006, 21:32
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This one will have the advantage of a more convenient UK airport, closer to London and with a bigger catchment area.
Maxjet & Eos chose Stansted as it is conveniently located for the "City" of London i:e; Canary Wharf as well as Cambridge which has a big market for transatlantic business travellers due to the nature of a lot of companies in and around Cambridgeshire.
If Luton was nearer and easier to get to from the City then I would have chosen to be based there as I live in the city and can tell you Luton is not as convenient for me to get to as Stansted in terms of ease of travel and distance. Some of you guys should try it and see for yourself. A lot of people on here just don't seem to like to see Stansted doing well and think the whole aviation universe revolves around Bedfordshire.
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Old 11th Apr 2006, 06:31
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Aside, to this in the 'Observer' on Sunday there was a very positive article stating that an 'open skies' policy would be signed by the EU & USA in June. It added that BA have already plans in place for new routes in October as a result of this and BMI will abandon EU routes for longhaul utilising there slots from LHR. If this is correct, which if not now then soon, there will be a huge increase in the existing 8000 seats a day from the London airports to JFK and other destinations which can only lead to a crop of casualties.
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Old 11th Apr 2006, 08:21
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Grrr

"A lot of people on here just don't seem to like to see Stansted doing well and think the whole aviation universe revolves around Bedfordshire."

I think quite simply that it is because there are quite a number of regular 'Luton posters' compared to Stansted and the fact that the BAA have openly cross subsidised Stansted with profits from elsewhere in their group! Not a level playing field?

Question: If Stansted is so convenient for the city of London, why do most of the executive Biz Jet's that ply the Atlantic, use Farnborough and Luton?

Ever tried to get from 'The City to Heathrow

Silverjet, I wish them well, hopefully not another Now, Styrian, Volare..........etc!
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Old 11th Apr 2006, 09:12
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Originally Posted by pamann
Maxjet & Eos chose Stansted as it is conveniently located for the "City" of London"
I'm quite sure they chose Stansted as it was the best available that had any slots. If they could get in to Heathrow they would leave tomorrow (as would just about every trunk carrier at Gatwick as well). Proximity to offices isn't everything.

We live close to LCY and within sight of Canary Wharf. Here are typical travel times I allow :

LCY : 5 minutes (local roads)
STN ; 35 minutes (M11), 32 miles
LHR : 1 hour 20 mins (through central London), 27 miles
LGW : 1 hour 20 mins (A13, Dartford bridge, M25), 48 miles
LUT : 1 hour 30 mins (M11, M25, M1), 51 miles

(Distances from Autoroute, times from experience)

It's a shame Ryanair haven't thought about using North Weald
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Old 11th Apr 2006, 09:26
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North Weald_ Essex North

A great idea, the squadron would make a great terminal, fantastic bacon butties, and a free airshow before every departure, the crew would all be in WW2 uniforms.
Only problem might be the weekend market, or perhaps not.
Almost forgot the runway crossing to the long term car park, and terminal.

Windy
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Old 13th Apr 2006, 16:42
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Article in the local rag giving a comprehensive report on the proposed Silverjet venture. Also mentions competition from the original proposed airline, Fly First, who had difficulty raising the finance. Apparently the project is still very much alive, albeit now, slightly different from the original plan. An announcement from Fly First can be expected within the next 2/3 months apparently.
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Old 14th Apr 2006, 07:02
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Originally Posted by Buster the Bear
[I]Question: If Stansted is so convenient for the city of London, why do most of the executive Biz Jet's that ply the Atlantic, use Farnborough and Luton?
I guess it's because the VIP handling at STN is not upto the standards of FBO's at Farnborough and Luton. Farnborough has brand new facilities, hangar space, full set of equipment and are only limited by the opening hours. Signature at Luton offer 24/7 availability and have their own hangar and a shed load of equipment. They also have management who don't mind spending money to attract customers.

Harrods, Universal and Inflite at Stansted are not 24/7. In fact, Universal actually publish their hours as 0800-2000 local with OOH on request, and they don't even have a full compliment of ground equipment let alone a hangar. By that, I mean they don't even have their own GPU they have to borrow one! As for Harrods at Stansted, I've heard there is unrest with the ground staff so that may have an effect on standards.

Pilots who fly VIP's around dictate VIP service and a friendly smile to greet their passengers, and you just don't get that at Stansted (apart from with Harrods and Inflite who at least are on site longer and have their own equipment and a hangar, and girls to greet the passengers)
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Old 14th Apr 2006, 08:37
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Here are typical travel times I would allow from Canary Wharf:

LCY : 5 minutes (local roads)
STN : 1 hour 20 minutes (tube to Liverpool Street, then via Stansted Express [44 minutes])
LHR : 50 minutes (tube to Paddington, then via Heathrow Express [15 minutes])
LGW : 1 hour 15 mins (tube to Victoria, then via Gatwick Express [38 minutes])
LTN : 1 hour 05 mins (tube to Kings Cross/St Pancras, then via Midland Mainline [23 mins] or Thameslink [35 mins]).

Of course, if you take a cab to the Central London termini, then you can save even more time.

Be environmentally responsible: leave your limo at home & let the train take the strain...!!

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Old 9th May 2006, 14:17
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AFX UK are reporting that Silverjet will be joining the AIM with a price tag of £33.6m. Admission to the AIM and commencement of dealings is expected to take place on 12 May. 24m shares @ 112p
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Old 9th May 2006, 16:34
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Citywire article about Silverjet here.

PP
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Old 9th May 2006, 19:58
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Power jet1. If you do the maths an issue of 24m shares to raise £33.6m would have to be £1.40 each bit more if you want to take commission into account.
Cyrano
I'm sure you're correct in assuming that no one is offering an advance purchase seat of £99 to NYC. If they did would this have much allure to an executive seasoned traveller?
Why EGGW with it's awful reputation as a bucket and spade holiday launch point short runway and naf winter weather. There is no rail connection to the airport (don't tell me that parkway is the airport) and the M1 to J11 is always jammed.
Now as for the unhelpful connections times and routes from airports to LON ; who would go to LON from LGW via the Dartford bridge? 1:20 from Canary Wharf to STN' you're 'aving a larf as they would say at the Queen Vic'.
For the doyens of Silverjet read this:
1) you've made a big mistake by going public before you have anything in the Bank. Look at all the airlines that have done this and failed - Now Alpha Hop Fly Blu/Who to name a few.
2) you've chosen the wrong airport, you might have better luck with Alconbury
3) Low cost and long haul and even worse low cost long haul and low density ? See an analyst.
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Old 9th May 2006, 20:47
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[QUOTE=Epsilon minus]

Why EGGW with it's awful reputation as a bucket and spade holiday launch point short runway and naf winter weather. There is no rail connection to the airport (don't tell me that parkway is the airport) and the M1 to J11 is always jammed.
QUOTE]

Luton is the UK’s busiest business jet airport so it would seem that the high flyers like it. The M1 is now being widened with a new duel carriageway into the airport being started this month.

As for a bucket and spade airport Luton is no different to Stansted in its mix of passengers. Luton now has only 20% of its passengers on charter flights.
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