BestWestern
Topic Author
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Eujet Future To Be Decided Jan13 - 32% DEC Loads

Fri Dec 17, 2004 3:48 am

Seems that EUJET needs a capital injection of $58m to survive.

The only owner (planestation) who want to continue investing in the carrier "is in severe financial difficulties ". Their bank have refused to give them the cash, so they have decided to float additional company shares to raise the necessary cash at a 20% discount on the current price.

"The Company's bank (Bank of Scotland) confirmed in writing to the UKLA that it would immediately withdraw its support of the Group so that no further finance would be made available to the Company and it would seek to recover any existing loans to the Company and enforce its security in respect thereof"

Problem is that the shares have fallen by approx 30% in the last six trading days already! Shareholders are reducing their exposure to Planestation - will they want to increase it further? Closing date is January 13th - so we will find out then. With their bank withdrawing funding, and three low cost collapses in as many weeks - will investors take the risk?

The following document also provides an interesting link to passenger numbers. Current numbers are running at 7k a week - and at 29 flights a day puts 22k seats into the market per week. 32% load factor. OUCH. As expected the share offering doesnt mention load factors or yield... But I suspect that investors can do their homework.

http://mwprices.ft.com/custom/ft-com/story.asp?siteid=ft&dist=ft&guid=%7BF9F16E39%2D42F2%2D4084%2D9733%2DFCD6F1E96080%7D

edited to fix document link

[Edited 2004-12-16 19:54:20]
Greetings from Hong Kong.... a subsidiary of China Inc.
 
trident2e
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Fri Dec 17, 2004 4:20 am

I was planning to ask my family for EUjet gift vouchers for Christmas, but I think now I won't bother!
 
BestWestern
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Fri Dec 17, 2004 7:13 am

I think its a wise decision to hold off vouchers till Mid January when the company is stabilised - unless you buy the vouchers with a credit card, which should guarentee the cash if the company fails.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
7LBAC111
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Mon Dec 20, 2004 6:03 pm

Apparently EUJet are now safe - having raised the £30miliion they claim to need to operate for another two years.

From:

EUJET’S future seems assured for the next two years following an announcement by PlaneStation plc, the new owner of the Kent International (Manston) Airport, that it had raised a £30m rescue package

7LBAC111
Debate is what you put on de hook when you want to catch de fish.
 
BestWestern
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Mon Dec 20, 2004 6:16 pm

Someones reading their ABTN subscription!

Seems that £30m has been raised. Obviously investors dont do their homework. The allure of owning an airline remains!
Greetings from Hong Kong.... a subsidiary of China Inc.
 
7LBAC111
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Mon Dec 20, 2004 6:31 pm

Haha - I forgot to type the source! As you can see I did type From:

BW - Is £30million (in your opinion) a realistic amount to allow EUJ to continue to operate for two years?

7LBAC111
Debate is what you put on de hook when you want to catch de fish.
 
BestWestern
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Mon Dec 20, 2004 7:11 pm

£30m is a lot of money for a 5 aircraft airline to burn through in two years, but no doubt they will spend every penny of it! I'm simply stunned they have been given so much cash when their bankers dont think the company is worth propping up anymore.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
OHLHD
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Joined: Fri Dec 03, 2004 6:02 am

RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Tue Dec 21, 2004 12:43 am

So after DUO, Air Polonia, V-Bird,.....

EUJet is (in my eyes) the next candidate for closing their ops.

30Mill for 2 years..... and than??????
 
7LBAC111
Posts: 2427
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Tue Dec 21, 2004 12:49 am

I guess they hope to be settled by end of 2006. If they are still in business that is ...

7LBAC111
Debate is what you put on de hook when you want to catch de fish.
 
BestWestern
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Tue Dec 21, 2004 8:15 pm

It seems that the news of the £30m cash being raised were premature.

EUJet shares have fallen another 12.5% this morning to 10.5p. If the share price falls further this basically means the company will have to further reduce the company share price offer and sell more shares to reach the £30m they need.

This further share fall is a further sign of the lack of shareholder belief in the company strategy.
Greetings from Hong Kong.... a subsidiary of China Inc.
 
JGPH1A
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Tue Dec 21, 2004 8:41 pm

Whoever that sucker was, he can kiss his 30million goodbye. Who in their right mind would invest in an airline operating from a portakabin in Kent ? Sorry, but even a non-investment-savvy individual like me can spot the flaw in that decision. Manston ? Are you mad ?
Young and beautiful and thin and gorgeous AND BANNED ! Cya at airspaceonline.com, losers
 
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RobK
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RE: Eujet Future To Be Decided Jan13 - 32% DEC Loads

Tue Dec 21, 2004 9:14 pm

Totally agree JGPH1A  Sad

I've been saying for the past 6 months that they'd be dead by Crimbo. Manston's a complete waste of time because of Heathrow, Gatwick and Stansted just down the road. You could get anywhere in Kent quicker using your own car or even the train from London.

If they'd started off using sensible sized aircraft they might have faired better on the profit side of things. Fokker 100's are way too big for the routes they're doing.

They're only hanging on by a thread now...

Cheers,

Rob K  Sad

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