Pogo Jet, a start-up air taxi company largely in the planning stage, postponed an initial public offering scheduled for 17 March due to financial uncertainty in US markets.
Other than a web site, high-profile executives and a plan to launch air taxi services with a fleet of 50 Eclipse 500 very light jets to and from 400 general aviation airports within a 970km (600 mile) radius of New York City starting in the second quarter of 2009, the company arrived with little in the way of assets - no aircraft, operational bases or Part 135 operating certificate.
By selling 7 million shares of common stock priced between $12.50 and $16.50 per share, Pogo had hoped to gain as much as $94.6 million operating revenue from the initial public offering.
It planned to use $39.4 million to "fund a portion of the aircraft deposits, progress payments and delivery payments", $11.8 million for non-aircraft capital projects, including build-up and maintenance of its operating facilities, and the remaining $43.4 million to fund "operating losses and for working capital and other general purposes", according to the IPO filing with the US Securities and Exchange Commission filed on 14 March.
Pogo had spent $6.74 million as of 31 December 2007, according to the SEC filing, although it had not "provided any aviation services or generated any operating revenues".
Launched in 2004 by long-time American Airlines chief Robert Crandall and Don Burr, creator of People Express, Pogo had initially opted for 75 Adam A700 VLJs and was to launch its IPO in 2005. By law, Pogo cannot comment on its plans as the IPO remains on file, although postponed, the company says.
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Source: FlightGlobal.com
