Possible Growth in Irish Air Market
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Possible Growth in Irish Air Market
From Today's Sunday Business Post:
Airlines to raise $18m in equity for ex-Shannon routes
By Des Crowley
Dublin, Ireland, 16 December, 2001
Two new airlines are to raise a combined $18 million in new equity to fund services out of Shannon in the New Year.
Gerry Clarke's Shannon Atlantic is to raise $10 million to fund his launch in the second quarter.
And Dick Healy's Skynet Aviation Airways is to raise $8 million for his airline.
The Shannon Atlantic service, which will use Embraer or Dornier airplanes with a capacity of 40 to 70 seats each, is targeted at niche business markets.
Clarke, a British entrepreneur, said the service will not be a "no frills" operation like Ryanair. But he is taking some of Ryanair's experience as a model.
Some observers fear that Shannon's catchment area is too small, possibly as few as 170,000 people. But Clarke puts it at 300,000.
Studies done for his group by a British University confirm that when new airlines start new services at an airport, the catchment area expands.
"This has certainly been the experience of Ryanair. People are prepared to fly and drive," he says.
Clarke is considering offering a Cork-London City and Shannon-Bristol service initially.
Clarke, who formerly worked with Emirates airlines, said he already had a senior management team in place and hoped to have 200 employees in two years time.
Meanwhile, Healy, a former Aer Rianta executive, expects to launch his new airline in April next year in close association with Russian airline Aeroflot.
Healy has already secured the backing of wealthy Irish-American businessman Tom Kane, owner of Adare Manor hotel. Other backers include wealthy US businessman Carl Pforfziemer III and US-based real estate businessman Paul Willamson.
"There are a number of banks that we have spoken to. We are here in New York selling our business plan to some people," Healy said last week.
Being an EU carrier, Skynet will have to be 51 per cent owned by European shareholders.
Healy says he is setting up now because leasing costs have dropped and aeroplanes are available.
"We have applied for our certification from the regulator. Our aim is to be up flying by 15 April next year. We are starting with two 737-400s and we will be flying from Shannon and Dublin to two European cities yet to be decided and to Moscow," said Healy.
"The latter end of the routes would be more or less on behalf of Aeroflot. Both planes would be going through Dublin. One will continue on to one city and the other will be overnighting in Dublin before continuing to another location, with both of them finishing in Moscow. They would both return the same night.
"We expect to put another aircraft on our fleet by September-October 2002.
"And we are going to double that per annum until we have about 20 aircraft flying to a number of European points and assisting Aeroflot then from those points to Moscow," he said.
Airlines to raise $18m in equity for ex-Shannon routes
By Des Crowley
Dublin, Ireland, 16 December, 2001
Two new airlines are to raise a combined $18 million in new equity to fund services out of Shannon in the New Year.
Gerry Clarke's Shannon Atlantic is to raise $10 million to fund his launch in the second quarter.
And Dick Healy's Skynet Aviation Airways is to raise $8 million for his airline.
The Shannon Atlantic service, which will use Embraer or Dornier airplanes with a capacity of 40 to 70 seats each, is targeted at niche business markets.
Clarke, a British entrepreneur, said the service will not be a "no frills" operation like Ryanair. But he is taking some of Ryanair's experience as a model.
Some observers fear that Shannon's catchment area is too small, possibly as few as 170,000 people. But Clarke puts it at 300,000.
Studies done for his group by a British University confirm that when new airlines start new services at an airport, the catchment area expands.
"This has certainly been the experience of Ryanair. People are prepared to fly and drive," he says.
Clarke is considering offering a Cork-London City and Shannon-Bristol service initially.
Clarke, who formerly worked with Emirates airlines, said he already had a senior management team in place and hoped to have 200 employees in two years time.
Meanwhile, Healy, a former Aer Rianta executive, expects to launch his new airline in April next year in close association with Russian airline Aeroflot.
Healy has already secured the backing of wealthy Irish-American businessman Tom Kane, owner of Adare Manor hotel. Other backers include wealthy US businessman Carl Pforfziemer III and US-based real estate businessman Paul Willamson.
"There are a number of banks that we have spoken to. We are here in New York selling our business plan to some people," Healy said last week.
Being an EU carrier, Skynet will have to be 51 per cent owned by European shareholders.
Healy says he is setting up now because leasing costs have dropped and aeroplanes are available.
"We have applied for our certification from the regulator. Our aim is to be up flying by 15 April next year. We are starting with two 737-400s and we will be flying from Shannon and Dublin to two European cities yet to be decided and to Moscow," said Healy.
"The latter end of the routes would be more or less on behalf of Aeroflot. Both planes would be going through Dublin. One will continue on to one city and the other will be overnighting in Dublin before continuing to another location, with both of them finishing in Moscow. They would both return the same night.
"We expect to put another aircraft on our fleet by September-October 2002.
"And we are going to double that per annum until we have about 20 aircraft flying to a number of European points and assisting Aeroflot then from those points to Moscow," he said.
