U.K. airline Silverjet halts flights
Silverjet PLC suspended operations Friday because a key funding deal for the British business class airline failed to materialize.
Silverjet operated services to Newark airport in New Jersey and to Dubai, United Arab Emirates, from its base at London’s Luton Airport. It said discussions with possible investors were continuing but no new financing had been secured.
Silverjet, which suspended trading in its shares a week ago, said its last flight departed Dubai on Friday morning.
The carrier said it had not received the $25.1 million it believed was coming Viceroy Holdings LLC, an international luxury development fund based in the United Arab Emirates and the U.S.
Silverjet had expected an initial installment of $5 million on May 2.
"Silverjet continues to be in discussions with investors interested in supporting the business of Silverjet, however it has yet to conclude such discussions to its satisfaction," the company said in a statement.
Carriers that offered similar business service flights have collapsed recently.
The announcement pushed Silverjet to the brink of sharing the fate of U.S payday loans. peers MAXjet Airways Inc. and EOS, which also started business-only services from London to New York in 2006.
MAXjetAirways Inc. was the first to fold late last year after running out of money and EOS, which also started business-only services from London to New York in 2006, collapsed last month.
Filed under: money by Wolf