Private jet operator to launch ‘low-cost’ service

IRISH-owned private executive jet operator JetBird has completed a private placement valuing the company at €101 million.

The placement of €21m of equity capital from various European and American private and institutional investors will allow the Dublin-based firm to finance the beginning of its fleet of aircraft and effectively get its operation off the ground. The company said yesterday that the placement was over-subscribed and included investment from a mix of existing and new investors.

JetBird has orders for 50 Embraer Phenom 100 aircraft — which can carry up to six passengers as well as two crew members — and options for a further 50. The company plans to put in place financing for its first 25 aircraft before the end of this month and said it is on track to officially launch its service, which is aimed at being the lowest cost executive jet taxi service in Europe, by 2009.

According to JetBird chairman Domhnal Slattery: “This capital-raising represents a significant uplift in valuation since our launch. This, in part, reflects the increased value of our order of 100 Phenom aircraft following a number of recent price increases. We are now adequately capitalised to sustain our medium-term objectives.”

The company’s chief executive Stefan Vilner added: “We have an established brand and are in the vanguard of aviation industry change. We continue to make significant progress towards delivering each of the key objectives in our business plan.”

While private helicopter ownership has boomed quite considerably over the past number of years as the economy grew, executive/private jet ownership has remained low — with only a handful of aircraft registered to Irish owners.

“We plan to transform private jet travel in Europe. We are applying best practice ‘low-cost carrier’ principles to our business to bring Europe’s first true low-cost executive jet business to market,” added Mr Vilner.

JetBird also announced yesterday the appointment of Carsten Dettmar as its head of finance. Mr Dettmar joins the company from Air Berlin, where he was head of treasury. He joins JetBird at the beginning of February.