Silver Airways (Fort Lauderdale/Hollywood) has announced several strategic developments that will enable its continued growth.
Silver announced a historic agreement by signing a letter of intent to renew and expand its fleet with up to 50 new ATR series aircraft. This is a significant strategic accomplishment for the air lines and a transaction valued at up to $1.1 billion. The initial order is for 20 ATR 42-600 aircraft and the agreement also provides Silver the ability to upgauge to the larger series ATR-72-600s. With this deal, Silver becomes the first fully independent U.S. regional airline in more than 20 years to sign a new aircraft deal of this magnitude. The firm 20 aircraft will be lease financed by Silver.
Silver will take delivery of up to four ATRs this year starting in the fourth quarter following receipt of regulatory approvals. Remaining deliveries of the first 20 aircraft are expected to be completed by the first quarter of 2020. Crew training will be conducted by ATR at its new training facility in Miami, which is home to a new multi-million-dollar investment of a Full Flight Simulator (FFS) for the ATR 72-600 series aircraft.
Concurrent with the announcement of its upgraded fleet, Silver also has named Steven A. Rossum as its new Chief Executive Officer, effective August 7, 2017. Mr. Rossum replaces Sami Teittinen, who has decided to leave Silver for personal reasons. In addition, Jason Bewley, presently Executive Vice President of Commercial and CFO, has been promoted to President and Chief Financial Officer of Silver in recognition of his valuable contribution to bringing the company to this stage of development.
Potential Expansion into the Caribbean
Finally, Silver announced that it has entered into negotiations with Seaborne Airlines to explore commercial cooperation including potentially a combination in support of its long-term goal to become a major U.S. airline. Seaborne is a San Juan, Puerto Rico-based air carrier serving destinations throughout Puerto Rico, the U.S. Virgin Islands, and other countries in the Caribbean. Seaborne provides connections throughout the Caribbean via the carrier’s hub in San Juan, while also serving as the most critical link between St. Croix and St. Thomas with the carrier’s seaplane operation. Versa Capital is the largest creditor of Seaborne as well as its majority owner.