Silverjet nears end of line

Posted on May 29th, 2008 in Featured

The business class only airline Silverjet is still hopeful it will receive its £12.6 million rescue package as its backers “are still keen to invest”, a spokesman for the all-business airline said this morning.

The business carrier was dealt a major blow on Friday when it became clear there were problems with the money it needs to keep flying. The cash lifeline from Middle East investors stalled as shares were suspended.

The predictions are it is unlikely that Silverjet’s shares will regain a listing. In a note it said: “We now estimate that it costs over £44,000 in fuel alone for a round trip to New York on a Silverjet B767, up from £28,600 at the time of the November 2007 fund raising.

“Against this background, we do not think anyone will bid and that, for Silverjet to survive, current shareholders will need to inject large amounts of fresh equity.”

The spokesperson for Silverjet said: “There will be an announcement in the next few days. Our investors are still in place but there is a problem their end with the loan. Meanwhile we would like people to know that we are still flying.”