New business class airline to launch

[Ari707]

LONDON, England -- British and American business travelers will soon have a new low-cost airline to choose from for flights between London and New York.

Silverjet is expected to start its Luton to Newark business-class service six to nine months after it lists on London's Alternative Investment Market (AIM) in May.

Silverjet announced on Monday that it hopes to raise £25 million ($43.5 million) from institutional investors.

The company eventually wants to run a 10-aircraft fleet to other destinations. All 100 seats onboard the aircraft will have flatbeds and a full business class service will be offered, the company said.

There will also be significantly reduced check-in times -- as little as 30 minutes.

The airline will be based on a similar model to short-haul budget counterparts easyJet and Ryanair.

The first all-business airlines offering low-cost fares, MAXjet and eos, began operating between London and the U.S. in November.

Silverjet chief executive Lawrence Hunt has been working on developing the business for two years. Hunt has been involved in six start-up businesses since 1984.

He told the UK's Press Association that big airlines gain most of their profits from premium customers and lose money in economy class.

In effect, business class passengers were subsidizing economy class passengers, and by losing economy seats, prices can come down without any compromise in service, he said.

"Market research has shown that passengers are currently not satisfied with the value of business class services on offer," Lawrence said.

"We therefore believe that there is a real demand for a long-haul airline, operating on a low-cost basis yet offering a high-quality, business-class product."

Peter Owen, a former British Airways operations director, is Silverjet's chairman, while John Bavister, a former Thomas Cook and Airtours executive, is finance director.

Following the float, Mr Hunt will own a 10 percent stake in the business while a further 10 percent will be owned by the other five members of the management team.


Do we really need a 3rd.???

[T-Bird76]

I wonder what his definition of "low fare" is? Going into Newark does offer a different customer base but MaxJet and EOS depending on their financial status certainly can enter that market sooner then Silverjet if they choose.

[Matt Molnar]

Whatever happened to Primaris?

[T-Bird76]

Whatever happened to Primaris?

They still have a website http://www.primarisairlines.com Whether or not this means they still plan to fly is anyone's guess. The most recent news on their site is well over a year old so who knows what that means.

[Mateo]

The Primaris 757, 740PA, has been operating for Venezuela-based Santa Barbara Airlines since last summer. In the summer of 2004, it flew a number of charters for the White House press corps using a Primaris flight number, but that seems to be the last operation of note.

[mirrodie]

it'll be interesting to see what happens.


incidentally I just read an article in GQ comparing the services offered on EOS and Maxjet. Its worth a read!

[Mellyrose]

I just read a blip in Entrepreneur mag about exclusive upper class airlines and Silverjet was mentioned as an up and coming. They estimate delivery of their first aircraft no later than November of this year.

Prices are set around $1900 roundtrip (to Luton) and the first flights will be from Newark and then eventually from JFK.

Their 767s will be configured for 100 passengers with flat beds.

check out the website: http://flysilverjet.com/

[PhilDernerJr]

I read about Silverjet yesterday, as they are looking to hire people on craigslist.

[Nonstop2AUH]

While I think offering EWR service is smart of them, this space is going to get crowded fast and shake out. I am not sure there are that many premium passengers who are willing to forgo their Executive Club or AAdvantage miles and their elite status within those programs, especially if they are also earning miles on their credit cards and through other means.

When I interviewed at Eos their sales and marketing people told me they were targeting the investment banking, hedge fund, and entertainment communities, i.e. people who do alot of point to point premium travel between NYC and London. Think of it as a transatlantic shuttle for rich people. While this market niche surely exists, as well as the one slightly below it that is occupied by Maxjet, is it really big enough to support 3 dedicated operators in addition to the several established multi-class airlines that already serve the route?

[PhilDernerJr]

I can see the need for that niche. I just think they need something to set them apart a little more.

I think any airline that goes for ultra-high-end clients should offer some deals on how to get people TO the airport. Like a special car service or even some hookup on the JFK shuttle or what-have-you.

[Midnight Mike]

I read about Silverjet yesterday, as they are looking to hire people on craigslist.

Craigslist is amazing, never realized how popular that website is!

[PhilDernerJr]

[quote="Phil D.":ea5ae]I read about Silverjet yesterday, as they are looking to hire people on craigslist.

Craigslist is amazing, never realized how popular that website is![/quote:ea5ae]

WELCOME TO 1999!!

[Nonstop2AUH]

Ok Phil, here is what I told Eos they needed to do, some of which they did, some of which they didn't , but either way I didn't get the job and the 2 execs that I met with are no longer there. Of course, some of these things are easier to do for 48 pax than for 100 (as Maxjet and Silverjet would have).

1) Onboard internet access. If you truly want the high end business passenger, give him something he cannot get on any other NY-London service. ANA and LH have this, among others, but still nobody on the key NY-London sector offers it. They said it cost too much to install the equipment.

2). Offer car service on both ends. If not a car service, offer a luxury motorcoach for all passengers to/from some central point. This is actually more important at STN, where there is no truly express fast rail link to/from central London, and they are offering car service with selected fares i.e. the higher ones.

3). Partner with local high end hotels, restaurants, retailers, clubs, etc. in NY and London. After all, if you are flying frequently between NYC and London these places are probably known to you and part of your lifestyle, and for them it's a good marketing opportunity because they reach a highly targeted audience.

4). Offer onboard food & beverage and amenities that are evocative of NY and London. E.g. offer fresh, local products that the majors can't because of their need for large scale catering contracts.

What is interesting to me is that the Eos people seemed extremely focused on securing contracts with corporate travel managers at Wall Street firms and such. Presumably, these are also some of the same people that Maxjet and Silverjet would be targeting, and I wonder if there comes a point at which BA, VS, CO, AA or whoever they were dealing with previously (and may still deal with on other sectors) offer a bigger discount and the travel manager takes the deal, shutting out the startups.

[Midnight Mike]

"Market research has shown that passengers are currently not satisfied with the value of business class services on offer," Lawrence said.


Here is the major reason why the door has opened for the niche type of airlines.

The 1st Class & Business class on the US & some of the Europeans airlines has tanked over the years....

[Midnight Mike]

[quote="Midnight Mike":49252][quote="Phil D.":49252]I read about Silverjet yesterday, as they are looking to hire people on craigslist.

Craigslist is amazing, never realized how popular that website is![/quote:49252]

WELCOME TO 1999!![/quote:49252]

HA! HA! HA!

http://img.photobucket.com/albums/v726/MidnightMike/Joke%20Photos/Yoda.gif

[Nonstop2AUH]

I haven't experienced them all personally, but I know the VS Upper Class is considered quite good, the BA Club Class (with which I have alot of personal experience) is decent although they cram in alot of seats, and CO BusinessFirst has won some awards. Haven't seen AA's 777 business class but it's supposed to be ok, certainly better than what they have on the 767 they operate to other European cities from JFK.

I think the opportunity has less to do with poor onboard service at the majors than with exclusivity, customization of the experience and less airport hassle when flying with a smaller number of people. For example, Eos was allowing a very short check in time and for people to pretty much carry on all of their baggage but not sure how the new security restrictions will affect this.

[hiss srq]

CO is great but BA is the way to go for constant quality service for me since That Wonderful Airline (TWA) fails to exist.

[Nonstop2AUH]

I'm posting too much today lol too much time on my hands but I have to say it's true, BA has been reliable for a very long time and they are quite proud of this heritage. While their FAs aren't the most friendly and they do cram in alot of seats in Club to accomodate all those mileage upgrades, there is a reason why they are the choice of expats in some of the world's most out of the way and/or potentially dangerous places. When I worked in the Gulf, even my local colleagues flew BA to Europe or on to the US, despite the presence of a couple of local airlines, one of which was owned in part by the organization we all worked for!

[Midnight Mike]

I rode American Biz & 1st class before, nothing special.

United 1st & Biz class, nothing special. The Sleeper seat was cool, but, the service was not the best.

Hawaiian 1st class, very Flight Attendants, but, the service was more like that of Business Class

From what I have heard, ANA & JAL have a very good 1st & Biz Class....

[Skymonster]

Silverjet have just contracted for two former Britannia/ThomsonFly 767-204s (G-BRIF and G-BRIG) initially operating on the ThomsonFly AOC I believe, so they'll be running equipment that's been around for a while like Maxjet. With the fares they're advertising and the capacity on a 762, I suspect they're going more after MaxJet market than after EOS. Luton has a good rail link to London, but the station is about two miles from the airport unlike Stansted where the rail services go from the terminal, and the motorway (sorry, freeway to my American friends) from Luton to London is DREADFUL - usually very congested and undergoing widening work for the next year or so with 40mph limits. It will be interesting to see how this shakes out - unless Silverjet offer something significantly better than MaxJet, my money is on MaxJet.

Andy

[Nonstop2AUH]

Has anyone heard anything lately about FlyFirst, which is supposed to be the 4th carrier in this niche (and also from UK)? And if this niche was so attractive, couldn't BA just contract with PrivatAir to operate a 48-seat BBJ or ACJ on the sector and win back customers by giving them exclusivity AND a big mileage plan?