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posted on Feb 09, 2008 04:53PM
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ABTN.co.uk
Feb 5, 2008 
Silverjet bullish on BA launch

 

 

Silverjet remains optimistic that British Airways’ (BA) recently-announced foray into business class only operations from London City Airport, will not pose a threat to its operations.

 

Indeed the Luton-based carrier is confident that BA’s business model means that the UK airline will have to charge relatively more for its transatlantic services.

 

“They [BA] have finally made a U turn and woken up to the fact that it is what customers want,” Silverjet CEO Lawrence Hunt told ABTN at today’s (5 February) Business Travel Show in London. “The challenge is that they are going to have to make a fuel stop.”

 

Given payload restrictions from London City, the BA services, operated using two new Airbus A318 aircraft, will have to stop for refuelling, possibly in Shannon in western Ireland, an inconvenience that BA perhaps optimistically, estimates at 40min.

 

“BA has mainline pilots and [will have] to night-stop crews in New York,” said Hunt, adding: “They also have 32 seats to cover £60,000-£70,000 of cost – it’s going to be expensive.”

 

The UK flag carrier will however, be able to operate non-stop US East coast-London flights due to en-route fuel burn and is banking on London City’s business-friendly reputation with 15min check-in and super-fast bag delivery on arrival.

 

Hunt is also resolutely confident that his carrier will enter profitability within two to three months and batted away one analyst’s suggestions to the contrary, particularly in the light of fellow business class operator, Maxjet’s demise.

 

“The airline business is a tough business but we are very confident of going into profitability in two or three months,” he said. “Yield is good at more than £1,100.

 

“Maxjet made a number of fundamental errors – they were only flying four days a week and went on and [then] came off, Washington DC.”

http://www.abtn.co.uk/Silverjet_bullish_on_BA_launch

 

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