Silverjet, the British all business class low-fare airline to operate between London and New York, has acquired the whole of the issued share capital of two related businesses, Flyjet and Skylease.
The acquisition of Skylease secures for Silverjet an additional Boeing 767 aircraft which will be its launch aircraft.
The aggregate consideration for the acquisition of Flyjet and Skylease will be between £4.0 million and £5.5 million in cash payable over a period of three years, dependent on the performance of the businesses and net assets at completion. The lease cost of the Boeing 767 is below both current market rates and the parameters in Silverjet’s business plan.
The acquisition of Flyjet, an international passenger airline, gives Silverjet immediate access to an Air Operator’s Certificate (“AOC”), Operating Licence and a worldwide Route Licence. This means that Silverjet will not need to outsource the operation of its aircraft to a third party, nor will it need to apply for its own AOC. As a consequence, Silverjet will achieve significant operating and capital expenditure savings and will be able to commence operations within a matter of months.
Skylease also leases two additional aircraft, both Boeing 757s, which are currently chartered to various tour operators through Flyjet.
Silverjet expects to formally announce the launch date for its inaugural all-business class service to New York within the next few weeks at which point the reservation system for advance bookings will go live. Last week, the Company has also been granted an Air Travel Organiser’s Licence by the UK Civil Aviation Authority.
Lawrence Hunt , Chief Executive Officer of Silverjet commented:
“The acquisitions we have announced today mean that Silverjet will be ready for take off within three to four months. Launching Silverjet in such a short period of time following our successful IPO is a significant achievement for our management team.
Silverjet is the first British airline to offer an all business class service. Our customers will be able to enjoy an industry beating 30 minute check in from a private jet terminal at London Luton an average £999 return fare and an award winning flat bed.