JetBird
Join Date: May 2008
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Hi,
1 year ago JB was valued at 100mil Euro. They state they have received an initial investment of over 700,000 Euro from a German financier and a Saudi family invested 6.9 mil Euro in the company. Since the recession the company’s value has decreased and they seem unable to secure further backing.
What happened to the 5 mil Euro they raised in order to enable them to take delivery of their first aircraft?
It will be interesting to see if anyone invests further in JB or will they become another victim of the recession.
1 year ago JB was valued at 100mil Euro. They state they have received an initial investment of over 700,000 Euro from a German financier and a Saudi family invested 6.9 mil Euro in the company. Since the recession the company’s value has decreased and they seem unable to secure further backing.
What happened to the 5 mil Euro they raised in order to enable them to take delivery of their first aircraft?
It will be interesting to see if anyone invests further in JB or will they become another victim of the recession.
Join Date: Mar 2008
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"Funding in place" could very easilly be taken to mean "It's in the bank" whereas in real life it's probably closer to "We've found someone to stump up the reddies, just doing due dilligence / getting it signed off". What looks better when you still don't have enough clients / funding to get off the ground?
I think it's fair to say that they've not really gone on the massive publicity bender that JetRepublic did - and if they didn't get off the ground with the ammount of time they spent trying...
My guess based on the figures you've given are they stumped up for a load of deposits on aircraft on the premise of having or being able to get the additional funding to pay the final ammount. Of course there'll have been costs associated with the initial setting up of the company - salaries, AOC application and all the other associated costs. This is just me speculating though...
I think it's fair to say that they've not really gone on the massive publicity bender that JetRepublic did - and if they didn't get off the ground with the ammount of time they spent trying...
My guess based on the figures you've given are they stumped up for a load of deposits on aircraft on the premise of having or being able to get the additional funding to pay the final ammount. Of course there'll have been costs associated with the initial setting up of the company - salaries, AOC application and all the other associated costs. This is just me speculating though...
Join Date: May 2008
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Hi X933,
What would concern me is that if they manage to get enough money together to launch it doesn't mean they will have enough to see them through until they have a steady flow of income. They would also have to take payment up front or make sure payment is made promptly otherwise they won't be able to cover their expenses and of course that shortfall will filter down the ladder.
I doubt Airport/FBO operators will provide credit to JB so fuel, landing and handling fees might need to be paid upfront. Had they been strong financially they would have a better chance of being granted credit for these services.
What would concern me is that if they manage to get enough money together to launch it doesn't mean they will have enough to see them through until they have a steady flow of income. They would also have to take payment up front or make sure payment is made promptly otherwise they won't be able to cover their expenses and of course that shortfall will filter down the ladder.
I doubt Airport/FBO operators will provide credit to JB so fuel, landing and handling fees might need to be paid upfront. Had they been strong financially they would have a better chance of being granted credit for these services.
Join Date: Jan 2007
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When will all you guys realise that the JB, JR, EJC, Ambeo, etc etc etc dreams do not work. The business plans are flawed and the only people who gain out of it are the smart talking sales guys who manage to get a bit of seed capital before the investors see the light. This pays for Ammani (sic) suits and flash cars.
I am sorry to say that if frozen ATPL courses had an examination on basic logic and elementary economics few of you would have passed. But it is well known that ex pilots make crap airline executives (Look at BA and how Aer Lingus are now). Get real and stop thinking that succcessful enterprises are the ones that boast about the amount of money they have conned out of people.
I am sorry to say that if frozen ATPL courses had an examination on basic logic and elementary economics few of you would have passed. But it is well known that ex pilots make crap airline executives (Look at BA and how Aer Lingus are now). Get real and stop thinking that succcessful enterprises are the ones that boast about the amount of money they have conned out of people.
Join Date: Feb 2008
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Hawker 750 Dooom munger
Those cold winter nights must fly by in your house, telling yourself how you always knew best!!!!!
If at first you dont succeed stop trying!!!
No wonder business aviation struggles to make any serious progress here in Europe..........
101
If at first you dont succeed stop trying!!!
No wonder business aviation struggles to make any serious progress here in Europe..........
101
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I think all the lolly has been spent on "fat cat salaries"
JetBird fails to fly despite €4.3m spend - Irish, Business - Independent.ie
JetBird fails to fly despite €4.3m spend - Irish, Business - Independent.ie
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Deskjockey
You make me laugh, I am far from a doom munger I am trying to help those people who hang on to threads and will probably be shafted by some guy promising a job, Can't you see you are being used as free promotion?
Hang on, there WILL be jobs eventually, but proper jobs with companies with futures and solid bases. The tramping air taxi model CANNOT work anywhere in the world until the cost base meets the revenue. That does not exist at the moment and certainly not during this world wide recession. It has been tried in the USA, Europe, and one guy even thought about doing it in Africa! Just think, if Warren Buffet cannot make it work why do think amateurs can?
You make me laugh, I am far from a doom munger I am trying to help those people who hang on to threads and will probably be shafted by some guy promising a job, Can't you see you are being used as free promotion?
Hang on, there WILL be jobs eventually, but proper jobs with companies with futures and solid bases. The tramping air taxi model CANNOT work anywhere in the world until the cost base meets the revenue. That does not exist at the moment and certainly not during this world wide recession. It has been tried in the USA, Europe, and one guy even thought about doing it in Africa! Just think, if Warren Buffet cannot make it work why do think amateurs can?
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Another case of counting their chickens before they hatch. Chalk another one up for worthless hype. Oh yeah....safe to say that the phone interview doesn't mean jack **** now.
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Unfortunately this was an accident waiting to happen.... Deskjockey probably disagrees but that is based on something called experience instead ofdooom mungering 
The only one that has exceeded my expectations so far is Blink...
Nope the reason is simple: the market is imperfect since there are part time companies, with privately owned aircraft competing for the same business as proper run companies with a bigger overhead and the burden of having to charge the customers the cost of ownership... And that my friend DJ happens in all markets. The US is even worse than Europe! 
But hey, they are not burried yet so who knows, there might be more money from Dubai errrrrr Abu Daby come in... Let's watch this space
The only one that has exceeded my expectations so far is Blink...
No wonder business aviation struggles to make any serious progress here in Europe..........
But hey, they are not burried yet so who knows, there might be more money from Dubai errrrrr Abu Daby come in... Let's watch this space
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Quote:
The only one that has exceeded my expectations so far is Blink...
I think they have abandoned the "Tramp steamer" type operation and mainly do pure charter, this way they could survive. The business model of one way pricing is flawed by amongst other things the huge cost of airport parking and crew hotel and expenses that simply cannot be forecast. For that to work one has to 100% sure of a return leg immediately and of course that simply does not happen.
The only one that has exceeded my expectations so far is Blink...
I think they have abandoned the "Tramp steamer" type operation and mainly do pure charter, this way they could survive. The business model of one way pricing is flawed by amongst other things the huge cost of airport parking and crew hotel and expenses that simply cannot be forecast. For that to work one has to 100% sure of a return leg immediately and of course that simply does not happen.
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Nope the reason is simple: the market is imperfect since there are part time companies, with privately owned aircraft competing for the same business as proper run companies with a bigger overhead and the burden of having to charge the customers the cost of ownership
I´d say, in the past few years every operator tried to sell an airplane and then manage it on their AOC, which works as long as the market isn´t saturated. Which it is NOW. So we simply have to many airplanes or to little work.
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Hi Guys,
Now that it has been reported JB has failed to secure financing and most possibly the nail in the coffin is the Dubai market crash casting doubts over banks again, no one will throw more money at bad money.
I would be extremely suprised if JB lasts til the New Year, investors would be very foolish to put money into this company or any company at the moment. That is why gold prices have shot up, as gold is a proven safe long term investment that is globally recognised.
Now that it has been reported JB has failed to secure financing and most possibly the nail in the coffin is the Dubai market crash casting doubts over banks again, no one will throw more money at bad money.
I would be extremely suprised if JB lasts til the New Year, investors would be very foolish to put money into this company or any company at the moment. That is why gold prices have shot up, as gold is a proven safe long term investment that is globally recognised.