TravelMole Q&A with Silverjet’s IT director George Henderson

George Henderson is IT director of all-business class Silverjet, which launched its first service to New York last week. He spoke to Linda Fox about the airline’s technology, GDS and future developments.

Q: Tell us about the technology Silverjet has chosen for reservations and customer touch points?

A: We have chosen Videcom to provide a complete end-to-end reservation, back-office, departure control system and internet booking system. It’s an integrated system so customers will get a seamless approach across all touch points. As a new business low-cost airline we don’t have millions to spend. Videcom has good experience of hosting regional size carriers across the world. It was a good decision and within three months we had it all up and running and all for £100,000 which is a strong message to put out. This week we will go live with a new release offering added value products (see related news story).

Q: What are your predictions for direct and trade booking?

A: We think it will be 40% through the online channel and 60% through the trade. We have a heavy reliance on the trade and therefore on the global distribution systems because of the business concept. My personal target for online is higher because of my background at Opodo and I think we can achieve more than 40% if it’s a compelling user experience people will want to come back. We’re using all the traditional online and offline marketing such as keywords, banners, viral campaigns and press and PR but we’re working with some very creative people within the Saatchi Group. We’re trying to differentiate through everything we do so, yes, it is traditional means but we’re trying to do it in a smart way so we get more bang for our buck. On the website we have achieved in seven months the same degree of functionality that a company such as British Airways has.

Q: What is your view on the global distribution systems?

A: We have signed deals with all four and direct access development projects with three have started. As an interim measure we went live with the next level of connectivity before Christmas so that agents can book Silverjet through the GDS. I don’t think the GDS are going to disappear in the medium term. They have too much content. We welcome anything that shakes up an old sector but until new entrants get critical mass they are not going to really succeed. We’re a start-up and we need bums on seats so we need to be on the GDS and we make no bones about that. Their business is connecting airlines but they are so big it takes them a long time to mobilise and as a start-up we do things very quickly. We have already done our IPO so we have to prove ourselves very quickly. However, we see a strategic future with the GDS.

Q: What do you think the split between business and leisure will be?

A: We think we will get 30% leisure and already a lot coming online is leisure because people are booking four to five months in advance so we know we’re appealing to that market. That’s a challenge to other airlines because with the average price of £999 we are comparable to premium economy and we’re definitely a challenge to business class. The load factors published by Eos and Maxjet prove the model works. There are 4.5 million passengers a year travelling to New York and we just want 200 a day – when the second service launches in July so it’s not as if we’re looking for a huge market share.

Q: What was it like having a blank sheet to work from?

A: A blank sheet is great because you are free from any legacy decisions. You are in complete control of your own destiny. We have got to make sure we are making the correct decisions now for the future and you need to work as a management team and get buy in on the technology whatever it happens to be. It’s a very exciting environment to be in.