Silverjet plans to expand, keeps options open

New York: Silverjet PLC is in talks to replicate its premium-class model through franchise deals around the world even as it treads cautiously in expanding its core business, the high-end airline's CEO said Thursday.
Chief Executive Lawrence Hunt also said the company has been approached by multiple potential buyers, although the private investment fund that recently injected much-needed cash into the UK carrier is not among them.
Like mainline carriers such as AMR Corp. (nyse: AMR - news - people )'s American Airlines and British Airways PLC, Silverjet continues to struggle with rapidly rising fuel costs, tightening credit markets and a slowing economy. Those factors, along with what some observers said was overly aggressive growth, helped bring down MAXjet and Eos.
Even so, Silverjet is moving ahead with plans to expand its core business. Hunt said the aim is to launch a new route every six to 12 months.
The carrier now flies to New York and Dubai, United Arab Emirates, from its home at London Luton Airport. Possible additional destinations include Los Angeles and San Francisco, as well as cities in South Africa and India.
One option being considered is a franchise model that would offer Silverjet flights in a number different regions, including booming countries such as India, China and the United Arab Emirates, as well as more established markets like the U.S. and Europe.
15/05/08 Adam Schreck/Associated Press/Forbes, USA

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Categories: Jet Airways May 2008