Silverjet grounded after deal collapses

30/05/08 12:15

Business airline Silverjet has suspended all of its operations and looks to be on the verge of collapse.

The company was forced to announce to the City last week that it has been unable to secure a $5m loan from Viceroy Holdings and that therefore it was running out of cash. It AIM-listed shares were suspended and the company has spent the last week trying to find a way forward for the business.

Its efforts appear to have failed, as at 7.30am this morning a London-bound plane took off from Dubai, which might well be the last flight for the company.

The company, which was founded in January 2007, appears to be the victim of rising oil costs and difficult market conditions.

Along with airlines such as Eos and MaxJet, the company had set out to take away business from the likes of British Airways, but like them it too has run out of cash.

In a statement on its website, chief executive Lawrence Hunt said: “When our inaugural flight took off in January 2007, we pledged to change the face of air travel. Your appreciation of our unique values and your belief in our product has allowed us to achieve this.

“Your belief in us was shared by our investors - but regrettably, due to unforeseen circumstances, they were unable to unlock the finance that we needed. As a result, we are very sad to announce that from 30 May 2008, we will cease operations and we are no longer able to honour flight reservations.

“We extend our sincerest apologies to those of you who have travel plans with Silverjet in the future and at present. You are advised to seek alternative travel arrangements with other carriers, and contact your credit card company or travel agent directly for information on obtaining refunds.

“We are working actively with new investors who are prepared to inject new funds so we can recommence operations. If we are able to achieve this, we will make an announcement as soon as possible and we hope to be able to bring you our very 'sivilised' (sic) flying experience again. Thank you for your support - it has meant everything.”