Notes From The Margin

March 7, 2008

BREAKING NEWS: Airone ON HOLD……

tracking a story out of Ireland this morning….

Plans by a number of Irish businessman including Digicel vice-president Leslie Buckley and former rugby international Brendan Mullin to launch a new Caribbean airline later this year have been grounded, the Irish Independent has learned.

It is understood a number of issues have led to the decision, including the recent surge in oil prices and the failure of the Jamaican government to give the airline a licence.

The decision was also taken against the backdrop of the current turmoil in financial markets and the collapse of US consumer confidence.

The original venture, which had been dubbed the “Ryanair of the Caribbean”, was to launch the airline in May 2008 covering the Caribbean as well as flights linking the region to the US and Latin America.

Since then, oil prices have shot up from about the $70 dollar a barrel level to spike close to $106 yesterday.

In addition, concerns about the subprime market in the US have had a significant negative affect on US consumer confidence.

While the decision by the Jamaican government not to give the licence to Airone pending the privatisation of Air Jamaica was taken earlier this year, the company had been looking at an alternative plan for Barbados, but that has also been put on hold.

It had already began recruiting staff for a Barbados base of operations.

Future

Informed sources said yesterday the company is “continuing to assess the situation” in relation to future plans for Airone.

It is understood about $30m (€20.4m) had been raised for the venture. Other business players on board are Ian Burns, the president of Wanderers rugby club, and Peter Delaney, the former director of operations at Guinness Peat Aviation.

Mr Mullin, who left Quinlan Private to set up public and private equity firm Quantum Investment Capital, recently joined NCB’s private wealth division and Quantum has backed into that business as a result.

BJM Nominees and Mr Buckley are the main shareholders in the company, with the remaining 22pc made up of promoters and cash investors.

At the time of the launch last year, the company confirmed it was 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 seven bases within the Caribbean and the Americas,” the company said in its business plan.

Airone Ventures was promising fares as low as 80pc below current charges available from competitors flying to Jamaica and other Caribbean destinations.

– Ailish O’Hora Business News Editor

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5 Comments »

  1. […] post by notesfromthemargin and software by Elliott […]

    Pingback by singlepilot.net » BREAKING NEWS: Airone ON HOLD…… — March 7, 2008 @ 11:57 am | Reply

  2. http://sil.ghanaweb.com/r.php?id=3591685&thread=3579891

    Subject: SHAME SHAME SHAME!!!

    Author: Ga all day (68.198.34.75)

    Date: 03-09-2008 00:15

    I can’t believe am reading this story… I happened to be in Ghana to watch the African Cup of Nation when i friend in Tema told me one of our classmate is leaving for Barbados. To make a long story short, the plan was when they get to Barbados, someone is suppose to arrange for them to go to America and if all else fails end up in Canada.

    We discuss this in lengh and i told him it might be very difficult trying to get all the passenger to the U.S.

    This people payed between 6000.00-8000.00 dollars for this trip.

    He told me he was interested in going too. i told him to be careful becausem it might end up being a scam run by Ghanaians and Nigerian nationals.

    my point is the organizers should all be jailed for stealing peoples HARD EARNED money and selling them false hope. Am just upset that someone that i know is a victim of the scam…. SHAME SHAME SHAAAAAAAME!!!!! SHAME ON YOU.

    Add comment Sunday, 9 March 2008, 8:52 am

    Comment by GHANA SCAM BUSTED — March 9, 2008 @ 7:46 pm | Reply

  3. we pause for a moment of blatant self congratulation here.

    The mainstream media printed the first hint of the Airone story today. We had them scooped by several days easy!

    Blatant self congratulation completed we now return to our regularly scheduled programming. 😛

    Marginal

    Comment by notesfromthemargin — March 10, 2008 @ 9:45 pm | Reply

  4. […] the wake of the Airone story, we noted an article in todays Nation about an upcoming audit for the […]

    Pingback by Barbados Tries For CAT1 Status -Is There Another Airline Setting Up? « Notes From The Margin — March 11, 2008 @ 5:51 pm | Reply

  5. […] the wake of the Airone story, we noted an article in todays Nation about an upcoming audit for the […]

    Pingback by singlepilot.net » Barbados Tries For CAT1 Status -Is There Another Airline Setting Up? — March 11, 2008 @ 6:27 pm | Reply


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