Airline Finance News - Europe

AirGuide Business, May 5, 2008

Silverjet

Silverjet announced the signing of an MOU with an unidentified party from the United Arab Emirates for a $25 million investment, including approximately $8 million in equity. The new ordinary shares issued to the investor will represent around 28% of the enlarged share capital, with a debt facility accounting for the remainder. The carrier said the investor intends to invest a further $75 million and "to participate in the international rollout of the Silverjet brand and concept into new markets within the Middle East, the Far East and Africa." The all-business-class carrier said that "following recent material increases in fuel prices and tightening of credit conditions in the airline industry, Silverjet's working capital has deteriorated and its residual reserves are limited." CEO Lawrence Hunt said, "The combination of Silverjet's already strong brand and presence in the market with the support of a long-term strategic investor will enable Silverjet to continue its growth and success achieved to date." May 1, 2008

Silverjet

Silverjet, the last remaining business class-only airline following the recent collapses of MAXjet and Eos, said earlier it had raised USD$25 million in debt and equity from a Middle East investor, with a potential USD$75 million to follow. Hunt would not name the investor, although he said it was an investment fund rather than an individual. He added that he hoped the cash would help restore sentiment in the firm following widespread speculation it would follow its rivals into bankruptcy. Silverjet will issue its latest passenger numbers next week. Hunt said the group had taken "loads" of passengers who were previously planning to fly with Eos. May 1, 2008

Silverjet

Silverjet, the all business class carrier, says it is confident of finding the money it needs to carry on flying despite record fuel prices which have seen off countless small carriers, including Eos, in recent months. Quick to offer Eos passengers special[sup.1] rates on its own flights following its bankruptcy filing, Silverjet CEO Lawrence Hunt said: "The airline industry is hugely competitive and this has been starkly illustrated by the [Eos] announcement. With our unique proposition and very reasonable prices, passengers can look forward to continuing to fly with Silverjet.[sup.2] Although the airline failed to reach its target of profitability last month, load factors looked healthy with a 23% growth in passenger numbers for March. Speculation has swirled recently - and the carrier[sup.1]s weak and fragile share price risen a fraction - regarding a potential takeover deal by carriers including Luton-based easyJet and Lufthansa, but it will be a bold move for anyone to enter the business-only niche where competitors have dropped like flies. Apr 28, 2008

US Airways, Swiss International

US Airways and Swiss International Air Lines yesterday launched a codeshare deal under which Swiss is placing its code on US's Philadelphia-Zurich service and US is placing its code on LX flights from Zurich to Geneva, Nice, Athens, Vienna, Dusseldorf, Hanover, Nuremberg, Stuttgart, Luxembourg and Bucharest Otopeni. Apr 29, 2008