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Private commercial airline hunts Jamaican licence - Airone Ventures names Digicel as sales partner
published: Friday | December 7, 2007
John Myers Jr., Business Reporter
A new [COLOR=orange! important][COLOR=orange! important]airline [COLOR=orange! important]company[/COLOR][/COLOR][/COLOR], whose directors include a top Digicel executive, has applied to Jamaica's Civil Aviation Authority (CAA) for a permit to operate [COLOR=orange! important][COLOR=orange! important]commercial[/COLOR][/COLOR] flights between the United States and Jamaica.
Digicel Group Vice-President Leslie Buckley is one of four named shareholders in Airone Ventures Limited, a Jamaican registered company and subsidiary of St. Lucia-based Airone Holdings Limited.
In addition, Airone and Digicel are forming an alliance but last night the latter company moved swiftly to dispel any suggestion that it was an investor in the [COLOR=orange! important][COLOR=orange! important]airline[/COLOR][/COLOR].
"It is an entirely separate legal entity to Digicel Limited," said group head of communications Maureen Rabbitt.
"Airone Ventures Limited is not owned, controlled or managed by Digicel Limited."
Pressed on whether the company's chairman Denis O'Brien was involved with Airone, both Rabbitt and later ProComm, the agency handling media relations for Airone, said 'no'.
Airone has asked the CAA for permission to operate as many as 18 flights per week from gateways in Kingston and [COLOR=orange! important][COLOR=orange! important]Montego [COLOR=orange! important]Bay[/COLOR][/COLOR][/COLOR] into Fort Lauderdale and New York in the US.
Airone Ventures, in a copy of an outline of its business plan obtained by the Financial Gleaner, said it has successfully raised US$30 million (J$2.1 billion) so far from private investors to begin its operations.
It plans to operate a fleet of five new Boeing 737s in the first eight months, with the intention of expanding to eight aircraft in two years.
Airone has tapped Digicel for assistance, saying that it would be relying on the savvy mobile phone company for sales support.
Rabbitt confirmed those talks.
"Digicel has discussed a number of business opportunities with Airone involving the Digicel dealer/retail network, such as passengers being able to collect/purchase tickets at Digicel retail stores and the like," she said.
The airline's in its business plan said it plans to take on the market and woo passengers by "working with Digicel to create the most innovative and comprehensive sales and distribution channels of any airline in the world today and will also be working with them in the areas of marketing and promotion."
The airline principals envisage Airone becoming the largest regional carrier under plans to to add routes to the wider Caribbean and Central American markets.
That plan puts them in direct competition with national carrier Air Jamaica, whose fleet of 15 already flies the some of destinations that Airone appears to be targeting.
Additionally, the company says it will be positioning itself as a low-cost carrier.
"We are here to establish a headquarters and a home from which we will grow to over 25 planes spread over 7 bases within the Caribbean and the Americas," the company said in its business plan.
It names Jamaica as its intended headquarters.
"Airone is established to offer [COLOR=orange! important][COLOR=orange! important]low [COLOR=orange! important]fares[/COLOR][/COLOR][/COLOR] in a market which requires development and growth and we have the ability to make it a reality. Airone is going to create a 'low fare airline for the people' and, through continuous investment, aggressive deal making, strategic alliances and hard work, develop to become the largest and cheapest carrier in the region," the principals said.
That also would pitch it against Spirit Airlines, an American carrier operating cheap flights to the region and other markets.
BJM Nominees and Buckley have been named as the main shareholders of the company, with the remaining 22 per cent being made up of promoters and cash investors.
This new entity, which is comprised of interests with expertise in finance, telecommunications and aviation, plans to break into the Jamaican market as a Low Cost Carrier (LCC) with the ethnic Diaspora and cost conscious tourists as its main target.
"There is also a large and growing market for low cost short holiday breaks and we will open Jamaica to these tourists who only travel to low cost carrier destinations," Airone said.
By diving into what Airone described as this 'untapped market' it expects to bring to Jamaica over 300,000 new passengers in the first year of operation and grow that number to over 600,000 in two years.
The company is confident that it can boost tourist arrivals by bringing one million new tourists to Jamaica's shores within five years.
Airone is promising fares priced as low as 80 per cent below current fares offered by airlines flying to Jamaica and other Caribbean destinations.
The principals in their pitch for CAA approval, argued that the establishment of Airone in Jamaica would not only provide low cost travel to residents and foreigners alike, but it would also generate some 220 new skilled jobs in the first year of operation with 90 per cent of those positions to be filled locally.
It estimates that its operations would contribute 2.0 per cent to the country's Gross Domestic Product, and contribute a minimum of US$65 million in taxes to the Government, excluding those to be had from new employment and third party service providers.
Airone Ventures has targeted May 2008 as has set May 2008 to commence flights.
The CAA has set December 12 as the final date for the public to object to Airone's obtaining a licence. john.myers@gleanerjm.com
published: Friday | December 7, 2007
John Myers Jr., Business Reporter
A new [COLOR=orange! important][COLOR=orange! important]airline [COLOR=orange! important]company[/COLOR][/COLOR][/COLOR], whose directors include a top Digicel executive, has applied to Jamaica's Civil Aviation Authority (CAA) for a permit to operate [COLOR=orange! important][COLOR=orange! important]commercial[/COLOR][/COLOR] flights between the United States and Jamaica.
Digicel Group Vice-President Leslie Buckley is one of four named shareholders in Airone Ventures Limited, a Jamaican registered company and subsidiary of St. Lucia-based Airone Holdings Limited.
In addition, Airone and Digicel are forming an alliance but last night the latter company moved swiftly to dispel any suggestion that it was an investor in the [COLOR=orange! important][COLOR=orange! important]airline[/COLOR][/COLOR].
"It is an entirely separate legal entity to Digicel Limited," said group head of communications Maureen Rabbitt.
"Airone Ventures Limited is not owned, controlled or managed by Digicel Limited."
Pressed on whether the company's chairman Denis O'Brien was involved with Airone, both Rabbitt and later ProComm, the agency handling media relations for Airone, said 'no'.
Airone has asked the CAA for permission to operate as many as 18 flights per week from gateways in Kingston and [COLOR=orange! important][COLOR=orange! important]Montego [COLOR=orange! important]Bay[/COLOR][/COLOR][/COLOR] into Fort Lauderdale and New York in the US.
Airone Ventures, in a copy of an outline of its business plan obtained by the Financial Gleaner, said it has successfully raised US$30 million (J$2.1 billion) so far from private investors to begin its operations.
It plans to operate a fleet of five new Boeing 737s in the first eight months, with the intention of expanding to eight aircraft in two years.
Airone has tapped Digicel for assistance, saying that it would be relying on the savvy mobile phone company for sales support.
Rabbitt confirmed those talks.
"Digicel has discussed a number of business opportunities with Airone involving the Digicel dealer/retail network, such as passengers being able to collect/purchase tickets at Digicel retail stores and the like," she said.
The airline's in its business plan said it plans to take on the market and woo passengers by "working with Digicel to create the most innovative and comprehensive sales and distribution channels of any airline in the world today and will also be working with them in the areas of marketing and promotion."
The airline principals envisage Airone becoming the largest regional carrier under plans to to add routes to the wider Caribbean and Central American markets.
That plan puts them in direct competition with national carrier Air Jamaica, whose fleet of 15 already flies the some of destinations that Airone appears to be targeting.
Additionally, the company says it will be positioning itself as a low-cost carrier.
"We are here to establish a headquarters and a home from which we will grow to over 25 planes spread over 7 bases within the Caribbean and the Americas," the company said in its business plan.
It names Jamaica as its intended headquarters.
"Airone is established to offer [COLOR=orange! important][COLOR=orange! important]low [COLOR=orange! important]fares[/COLOR][/COLOR][/COLOR] in a market which requires development and growth and we have the ability to make it a reality. Airone is going to create a 'low fare airline for the people' and, through continuous investment, aggressive deal making, strategic alliances and hard work, develop to become the largest and cheapest carrier in the region," the principals said.
That also would pitch it against Spirit Airlines, an American carrier operating cheap flights to the region and other markets.
BJM Nominees and Buckley have been named as the main shareholders of the company, with the remaining 22 per cent being made up of promoters and cash investors.
This new entity, which is comprised of interests with expertise in finance, telecommunications and aviation, plans to break into the Jamaican market as a Low Cost Carrier (LCC) with the ethnic Diaspora and cost conscious tourists as its main target.
"There is also a large and growing market for low cost short holiday breaks and we will open Jamaica to these tourists who only travel to low cost carrier destinations," Airone said.
By diving into what Airone described as this 'untapped market' it expects to bring to Jamaica over 300,000 new passengers in the first year of operation and grow that number to over 600,000 in two years.
The company is confident that it can boost tourist arrivals by bringing one million new tourists to Jamaica's shores within five years.
Airone is promising fares priced as low as 80 per cent below current fares offered by airlines flying to Jamaica and other Caribbean destinations.
The principals in their pitch for CAA approval, argued that the establishment of Airone in Jamaica would not only provide low cost travel to residents and foreigners alike, but it would also generate some 220 new skilled jobs in the first year of operation with 90 per cent of those positions to be filled locally.
It estimates that its operations would contribute 2.0 per cent to the country's Gross Domestic Product, and contribute a minimum of US$65 million in taxes to the Government, excluding those to be had from new employment and third party service providers.
Airone Ventures has targeted May 2008 as has set May 2008 to commence flights.
The CAA has set December 12 as the final date for the public to object to Airone's obtaining a licence. john.myers@gleanerjm.com