Sky's the limit for Branson wannabe

After his financial backer – a Yorkshire-based software company – went bust, he parked his dream to become the next Sir Richard Branson, and joined the police force at entry level.

But he was spurred on by the onset of the 2008 recession and the failure of the UK’s third-largest package holiday group, XL Leisure, which left thousands of British tourists stranded and out of pocket.

“The recession killed small regional airports, with the big operators cutting back on flights to certain destinations such as the Canary Islands,” Reilly explains.

“My focus was on offering key sun, sea and sand destinations from regional airports that historically had proven popular but had lost their services following the downturn.”

His vision was deliberately in contrast to the culture of budget airlines, hidden charges and excessive airport queues.

He wanted to create a low-cost airline that allows up to 15kg of hand luggage, offers good customer service and allocated seats.

“I also felt sick and tired of the hidden fees and poor customer service culture that had taken over the UK airline industry,” he says.

The biggest traveller irritants, according to Reilly, are queues and security, annoyances he wished to address by flying out of a small airport.

Against his family’s advice, he left behind the security of a career with the police force to take a job as a chartered broker to make industry contacts – including his now-business partner, Shai Sony.

Nearing retirement, the managing director of Liverpool-based World Choice Sports – a company that sells packages to events such as the British Grand Prix – went on to invest in JetXtra and manage its finances.

Despite Reilly’s strong ties with John Lennon Airport in his home town of Liverpool, he identified a need for

low-cost flights to Alicante and Majorca from Humberside airport, with a sea of holidaymakers on its doorstep.

“Lincolnshire is one of the richest counties in Britain, yet under-served by flights. Hull, Scunthorpe, Grimsby and Sheffield are only a few miles away for people who usually have to drive over the Pennines to get a flight,” he says.

For a start-up with limited funding, barriers to entry into the aviation industry are high.

“We couldn’t afford just to buy a fleet of aircraft. So we leased an Embraer 190, which carries 98 passengers, from British Airways. My plan is to generate enough revenue to buy and brand JetXtra planes and hire our own crew. That’s a more affordable alternative.”

But in the short term, this arrangement means pilots, crew and a plane all come from BA and meet that company’s engineering, health and safety and training standards.

“We are offering a premium service at low cost, which is attractive to our customers, many of whom will have never flown BA,” he says.

His partnership with the Atol-licensed World Choice Sports helped him secure that all-important seal of approval from the Consumer Aviation Association, protecting his passengers against the collapse of the business.

With customer service at the forefront of his business model, the small and nimble fledgling company is always looking to react to consumer needs.

“Some airlines charge you for making a booking over the phone, trying to encourage online-only bookings,” Reilly says. “But we quickly realised that people still need this service, especially slightly older customers or those in the more isolated parts of Lincolnshire, where broadband is very patchy.”

After planning its routes, Jetxtra finally took to the skies, bound for Alicante in May 2013, having marketed itself on the radio, using Google ad words and via newspaper advertising - the latter proving the most successful.

The costs of such a venture are high. The major outgoing is leasing the aircraft but the price of fuel, which has increased since the onset of tensions in Ukraine, is also one of Reilly’s larger overheads.

Last summer, JetXtra carried 2,000 passengers. Sales have increased by 50pc over the past 12 months, with 40pc of bookings made by return customers.By the end of this year turnover is estimated to hit £1m and Reilly expects to carry 10,000 passengers by 2015.

Over the next few months he will launch winter flights for the first time, responding to customer demand, and is in discussions with Liverpool John Lennon Airport to discuss expanding the business in the North West. He will also offer package holidays.

The business now employs 10 members of office staff, processing bookings and assisting Reilly with planning new routes. Despite his tender age, the entrepreneur has now been selected as a British Chamber of Commerce mentor, helping other young Liverpudlian pioneers set up shop.

Reilly is yet to meet Sir Richard, the founder of Virgin Atlantic. Although, with his new low-cost model and expanding airline business, he’s now looking to clip his hero’s wings.

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