THE DÓMHNAL Slattery-backed executive jet airline JetBird has placed all of its staff on protective notice as it battles to secure new funding to allow the business to take off.
JetBird employs 38 staff, including 14 pilots, but has been unable to generate any revenues while it awaits the funding required to release new Phenom aircraft from Brazilian manufacture Embraer.
The Irish airline has missed three proposed launch dates so far this year, the most recent of which was in September. Talk of a launch by Christmas has also been abandoned. A source close to the company said JetBird has been forced to scale back its operations to reduce its cash burn.
JetBird was founded in 2006 with the backing of Claret Capital, the Dublin-based investment group led by Mr Slattery and backed by Senator Feargal Quinn and his family.
The aim was to provide low-cost executive jet travel across continental Europe.
It placed an order for up to 100 aircraft with Embraer, and designated Cologne as its launch base.
Accounts filed recently show that JetBird Ltd (Ireland) made a loss of €4.27 million in 2008.
The airline incurred administrative expenses of €2.3 million and “business costs” of €1.7 million relating to expenses racked up in 2006 and 2007.
It operates from offices at a business park in East Wall, Dublin. The accounts show that seven employees earned €1.12 million between them in 2008.
Directors’ emoluments amounted to €378,812. The company is led by Stefan Vilner, who was the chief commercial officer of Sterling Airways, at the time Europe’s fourth-largest low fares carrier.
JetBird is believed to be seeking new funding of up to €6 million, which it needs to take delivery of its aircraft. This funding was expected to come from its Saudi backers.
The airline’s early backing was provided by Claret, with Saudi investors reportedly paying €10 million for a 9.3 per cent stake late last year.
That valued the fledgling business at about $100 million (€66 million), but it is not clear whether all of this money was actually secured by JetBird.
JetBird also secured debt financing from Royal Bank of Scotland last year to help fund payments for its first 25 aircraft. It plans to have 100 in service by 2013.
Its parent company, JetBird Ltd (Cyprus), put €3.34 million into the business last year to help keep it going. Although based in Dublin, JetBird planned to operate mostly in Germany and neighbouring countries.
The company launched its website earlier this year, although this only provides sample fares and information on routes.
