JetBird struggling to get off the ground

AS FINANCIER Dómhnal Slattery plots his re-entry into the aviation leasing industry, his executive jet airline start up, JetBird, still awaits clearance for take-off.

Slattery unveiled plans for the ambitious project more than 2½ years ago, placing an order for up to 100 aircraft with Brazil’s Embraer and designating Cologne as its launch base.

He also hired an experienced executive team in Dublin. Its early backing was provided by Slattery’s Claret Capital, with Saudi investors paying €10 million for a 9.3 per cent stake late last year.

But three proposed launch dates – the most recent was September of this year – have been missed and accounts just filed reveal the level of cash burn up to the end of last year.

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.

Staff were well remunerated. The seven employees earned €1.12 million between them. That’s an average of just under €160,000.

Directors’ emoluments amounted to €378,812.

Its parent company, JetBird Ltd (Cyprus), put €3.34 million into the business last year to help keep the show on the road.

So whither JetBird? A spokesman told me that a pre-Christmas launch is “unlikely”. The airline is trying to secure new funding of €5 million to €6 million, which it needs to take delivery of its aircraft. This funding is expected to come from its Saudi backers.

With Claret Capital recently placed into cold storage due to the credit crunch, Slattery probably can’t wait for 2009 to end.