Silverjet 2 - The Phoenix?
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The business model is fatally flawed. To even survive today an airline needs to be able to extract the best results from a mix of high volume and high yield traffic.
Turning their back on half the revenue stream is (was) suicide.
Turning their back on half the revenue stream is (was) suicide.
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I said "an airline needs to be able to extract the best results from a mix of high volume and high yield traffic"
BA has plenty of economy traffic.
To start an airline which has NO high volume traffic is too risky, as Silverjet has shown.
BA has plenty of economy traffic.
To start an airline which has NO high volume traffic is too risky, as Silverjet has shown.
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Chaps,
Just a thought...........
If BA and Virgin weren't too worried about SJ why would they be offering cheap rates and good air miles offers? If they weren't concered then they'd just plod on and wait for the business to come to them.
They must be worried about something.
L Met
Just a thought...........
If BA and Virgin weren't too worried about SJ why would they be offering cheap rates and good air miles offers? If they weren't concered then they'd just plod on and wait for the business to come to them.
They must be worried about something.
L Met
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The business model is fatally flawed.
Which is why BA are about to launch just this type of service from Heathrow
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At BA the only service we are launching is from LCY. Futhermore we are leasing 4 x 777 which will like a number of our other 77's does not have 'first'. First and Club bookings have taken a 2% downturn in the last month. Much of Silvers service that attracts the punter is the late check-in but that is offered by Virgin from LHR.
Whatever the outcome of LCY and its 2 x 318's BA can easily write that off if it makes no monies. The LCY operation is nothing whatsoever like silver it will have new economic aircraft and will require only the minimum ground handling costs. Our Open Skies service is now going to operate as a codeshare with another EU operator that has been flying a similar service to the USA for a couple of years now thus minimising the risk.
Finally all airlines offer advantages like Air Miles and I .do not know when WW made any comments about the niche market operators. He has more than enough to worry and concern himself with at LHR / LGW. As loads get worse this summer I would not be suprised to see many offers from the USA carriers out of LHR that will futher deflate everyones earnings.
Whatever the outcome of LCY and its 2 x 318's BA can easily write that off if it makes no monies. The LCY operation is nothing whatsoever like silver it will have new economic aircraft and will require only the minimum ground handling costs. Our Open Skies service is now going to operate as a codeshare with another EU operator that has been flying a similar service to the USA for a couple of years now thus minimising the risk.
Finally all airlines offer advantages like Air Miles and I .do not know when WW made any comments about the niche market operators. He has more than enough to worry and concern himself with at LHR / LGW. As loads get worse this summer I would not be suprised to see many offers from the USA carriers out of LHR that will futher deflate everyones earnings.
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A318 versus B777
Which one will the excutive choose
A318 M.76 LCY-NYC 8hrs +
B777 M.84 LON-NYC 7.30
Same legroom and service in both. A318 frequency once a day B777 numerous.
Or, if you were really that important would you not go private on a corporate jet and enjoy much less risk from the boys from AQT?
Which one will the excutive choose
A318 M.76 LCY-NYC 8hrs +
B777 M.84 LON-NYC 7.30
Same legroom and service in both. A318 frequency once a day B777 numerous.
Or, if you were really that important would you not go private on a corporate jet and enjoy much less risk from the boys from AQT?
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A318 versus B777
Which one will the excutive choose
A318 M.76 LCY-NYC 8hrs +
B777 M.84 LON-NYC 7.30
Same legroom and service in both. A318 frequency once a day B777 numerous.
Which one will the excutive choose
A318 M.76 LCY-NYC 8hrs +
B777 M.84 LON-NYC 7.30
Same legroom and service in both. A318 frequency once a day B777 numerous.
Paxing All Over The World
As I have said before - the basic business plan is not flawed - but you do not launch a premium service at end of the financial cycle. As the recession takes hold, all carriers are going to suffer and across all sections of the market. However, I expect that the BA 318s out of LCY will do well not least because they have money to back them and will be nicely worked in by the time the next upturn occurs.
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Rescue deal fallen through
http://ukpress.google.com/article/AL...2eTIZxuKN7WjDg
All 300 workers at collapsed business-class airline Silverjet were laid off after a rescue deal fell through.
Swiss investor Kingplace had provisionally agreed to take over the Luton Airport-based carrier after it fell into administration a fortnight ago.
But administrator Begbies Traynor said that, due to "unusually complex negotiations" with third parties, Kingplace was "no longer in a position to acquire Silverjet as a going concern
All 300 workers at collapsed business-class airline Silverjet were laid off after a rescue deal fell through.
Swiss investor Kingplace had provisionally agreed to take over the Luton Airport-based carrier after it fell into administration a fortnight ago.
But administrator Begbies Traynor said that, due to "unusually complex negotiations" with third parties, Kingplace was "no longer in a position to acquire Silverjet as a going concern
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Times online this afternoon
http://business.timesonline.co.uk/to...cle4130007.ece
Sadly looks like the end of Silverjet as a going concern. Much sympathies to all staff and hope they get new positions soon.
IainB
Sorry for multiple posting, we must all have hit the button at the same time.
Sadly looks like the end of Silverjet as a going concern. Much sympathies to all staff and hope they get new positions soon.
IainB
Sorry for multiple posting, we must all have hit the button at the same time.
Last edited by IainB; 13th Jun 2008 at 13:53. Reason: multiple posts
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Sad news.
I found it odd, that a prospective buyer had come along, when an airline is just what you don't want in a portfolio at the moment.
I presume the third parties mentioned would be the creditors.
I found it odd, that a prospective buyer had come along, when an airline is just what you don't want in a portfolio at the moment.
I presume the third parties mentioned would be the creditors.