Silverjet goes for £22m extra funding

Saturday, 23 Nov, 2007 0

All business class carrier Silverjet is to raise an extra £22 million in funding as it plans further expansion.

The airline, which runs flights to Luton to Newark and Dubai, plans a £12 million share placing and a convertible loan of £10 million from new investors.

The proposed fund raising came as Silverjet revealed half year results for the period to September 30 which showed £11.8 million in revenue from scheduled flights and £14.5 million in cash.

The additional funds will go towards development of exclusive arrival facilities at Luton, deposits under sale and leaseback arrangements to purchase two extended range Boeing 767s from Thomsonfly for delivery in March 2008, and to further strengthen the balance sheet for the launch of new routes.

CEO Lawrence Hunt said: “In order to roll out our successful business model we are delighted to announce a proposed placing of £12 million, and the support of the Reuben brothers, whose organisation has provided a proposed convertible loan of £10 million, which together will allow us to develop our revolutionary ground experience at Luton and Newark and be the first scheduled airline in the world to offer an exclusive arrival facility for our customers, and to secure our fourth and fifth aircraft to develop our network.”

New investor David Reuben said: “We have a long-term interest in the industry and hope that through our association with Silverjet we will be in a better position to execute our plans.

“We believe Silverjet will be a major player in the global aviation business, demonstrated by their hugely successful launch and performance in their first 9 months of operation.

“We are long term investors in the sector and look forward to helping Silverjet accelerate its development and growth.”

The latest figures showed a 38% increase in revenue seats flown in October (6,782) over September (4,916) and a “significant increase” in yields in recent months.

by Phil Davies

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Phil Davies

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