Silver Airways to operate as an United Express carrier at Washington Dulles

Silver Airways (Fort Lauderdale/Hollywood and Gainesville) as a follow-up to our previous report, will operate its new services this summer to Washington Dulles as an United Express carrier. According to the agreement has been finalized and was a deal breaker if not accomplished. Silver Airways will operate SAAB 340B aircraft on the routes into IAD from West Virginia and western Pennsylvania. It is still unclear if the SAABs will be operated in Silver’s colors or the United Express livery. Service is expected to start on August 1 and will replace Colgan Air.

From Dulles, Silver Airways will serve four communities in West Virginia and two in Pennsylvania as follows:

 West Virginia – Beckley (BKW), Clarksburg (CKB), Lewisburg (LWB) and Morgantown (MGW)
 Pennsylvania – Altoona (AOO) and Johnstown (JST)

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As of June 2012, Silver Airways currently operates a fleet of twenty-one Beechcraft 1900D and five SAAB 340B/Plus aircraft. Five of the twenty-one B1900D aircraft have been removed from service and replaced with the five SAAB 340B/Plus models. The remaining sixteen 1900D aircraft are in service.

Silver Airways currently serves four principal markets:

Florida intrastate routes, Florida routes to and from the Bahamas, Cleveland EAS routes, and Montana EAS routes. The Florida intrastate routes include Fort Lauderdale/Hollywood, Key West, West Palm Beach, Tampa, Gainesville, Tallahassee, and Pensacola. The Florida routes to and from the Bahamas serve Bimini, Freeport, Treasure Cay, Marsh Harbour, Eleuthera, Governor’s Harbour, and George Town.

The Cleveland EAS routes serve Cleveland, Parkersburg, Lewisburg, Dubois, Franklin, Bradford, and Jamestown.

The Montana EAS routes serve Billings, Helena, Lewiston, Havre, Glasgow, Wolf Point, Sidney, Glendive, and Miles City.

During its second year, Silver Airways anticipates operations changes to its fleet, routes, maintenance, and infrastructure and bench strength. The Company expects continued replacement of the 1900D aircraft with the SAAB 340B/Plus aircraft. By the end of its second year, the Company will have replaced all of the 1900D models in its Florida and Bahamas markets, leaving four 1900D aircraft in its Cleveland market and four in its Montana market.

As stated above, on August 1, 2012, the Company will begin EAS routes out of Washington Dulles Airport operating to Altoona, Johnstown, Morgantown, Clarksburg, Shenandoah Valley, Beckley, and Lewisburg using three Saab 340B/Plus aircraft.

On October 1, 2012 the Company will begin EAS routes out of Atlanta operating to Hattiesburg, Meridian, Gainesville, Greenville, Tupelo, Muscle Shoals, and Lewisburg using three SAAB 340B/Plus aircraft. The Company may add additional routes as opportunities arise. The Company will continue to grow its in-house maintenance capabilities in Gainesville and will be adding the SAAB 340B/Plus heavy check program.

On the financial side, for the 12 months ending on April 30, 2012, the Company reported a net loss of $12.3 million on revenues of $88.9 million.

However the Company only had $3.6 million of unrestricted cash on hand at the end of the period.

Can it handle all of this expansion?