Silverjet plans London-New York business class only flights

Silverjet plans London-New York business class only flights

	Published : Tue, 11 Apr 2006 08:10 By : David Simms Print this Story

LONDON: Silverjet, the latest entrant into the British civil aviation scenario, plans to offer low-fare business class travel in about six to nine months initially between London and New York.

The airline, floated by Lawrence Hunt, a serial entrepreneur, whose family owns the Foyles bookshop chain and Air Foyle, an airfreight operating company, is planning a listing on London's Alternative Investment Market in May to raise 25 million pounds from institutional investors in the U.K. While its first service will be from Luton airport to New York's Newark airport, it is planning at least four other routes soon.

In about three years of starting operations, the airline will have a fleet of 10 aircraft, offering its business class only travellers flat beds, pre-ordered films and meals along with chauffeur services to and from the airports and easier check-in facilities.

While offering all these luxuries, Silverjet is pricing its London-New York-London sector at 999 pounds, substantially lower than existing business class fares of established airlines.

Silverjet will give direct competition to existing U.S.-owned business-only luxury flight operators MaxJet and Eos. It is also likely to wean passengers away from British Airways and Virgin Atlantic.

According to Silverjet, the business class fare for the London-New York-London sector in Eos and British Airways is more than 3,000 pounds, while MaxJet charges 850 pounds for seats that do not become a fully flat bed. Said Hunt: "We are offering an Eos product at MaxJet prices. And [compared with BA or Virgin], we are not using business class to subsidies the back of the plane, as we have no economy passengers."

Passengers are required to report only half an hour before the departure time at the airport. It will use the facilities at Luton airport earmarked for private jets. In New York, the company will provide a helicopter service from Manhattan to Newark airport.

There are nearly 4.5 million passengers a year between the two cities, and about one-third of them are business class travellers. Hunt said besides these travellers, his airline would also attract leisure travellers with a "very low" fare when booked early.

There will be two services daily to begin with, which will be increased to four flights a day within two years.

Hunt said Silverjet will add other routes in about three years. It will initially lease Boeing 767 wide-bodied jets for the service.

Peter Owen, former chief executive of Aer Lingus is chairing Silverjet's board. Among its directors is Peter Evans, former head of operations at Virgin Atlantic.

Following the stock market float, Hunt will have a 10 per cent stake in the company, while the other five members of the management team will together own 10 per cent.