Maxjet plans £100m AIM float to fund growth
Tuesday, 8 May 2007
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Maxjet, the low-fares business-class airline, is to follow the lead of rival carrier Silverjet by floating on the London market in a deal expected to value the business at about £100m.
The airline, which began transatlantic services in November 2005, and now operates from Stansted to New York, Washington and Las Vegas in a fleet of five Boeing 767 aircraft, said it intends to seek a listing on the Alternative Investment Market (AIM).
The move follows the signing of an "open skies" deal between the US and Europe, which Maxjet believes will open up new markets across the Atlantic as competition intensifies.
Maxjet charges between £599 and £2,000 for a round trip, which puts it in between its two business class-only rivals, Silverjet and Eos. Silverjet's standard return fare to the US is £999 while Eos, which was launched by former BA strategy director David Spurlock, charges around £4,000 - close to the price of a business-class fare on BA and Virgin.
Maxjet's 767s are fitted with 102 business-class seats and the airline said its aircraft flew 75 per cent full in April. This compares with around 55 per cent on the Luton-based Silverjet.
The proceeds from the AIM float will be used to fund further expansion and pay down debt. In addition to the US, Maxjet has ambitions to fly to the Middle East, Asia and Africa and will launch a fourth transatlantic service this August to Los Angeles.
Since its launch 18 months ago, Maxjet has carried more than 75,000 passengers and in its first full year achieved sales of $41m (£20.6m).
Silverjet floated a year ago, since when its shares have risen almost 90 per cent. It recently went to the market to raise a further £25m. Eos has also had to return to its financial backers.
