Silverjet ceases operations and enters administration

Sunday, June 1, 2008

A Silverjet Boeing 767 departs Luton Airport.

British all-business class airline Silverjet has ceased operations and entered administration. The airline operated out of Luton Airport running services to New York and Dubai.

Passengers booked with Silverjet have been told to claim refunds from their credit card issuer or travel agent. The UK Civil Aviation Authority estimates that 7,000 UK travellers could be affected by the collapse.

The airline, which had hoped to secure an emergency US$5 million loan from Viceroy Holdings, was formed at the start of last year. It has now been put up for sale by administrator Begbies Traynor. It is thought that Middle Eastern company Viceroy may put in an offer, as might a group of former Silverjet managers who recently left the company. Included in the administration deal are Silverjet's subsidiaries Silverjet Aviation Limited, Skylease Limited and Sky People Limited, all of which are wholly owned by Silverjet.

Silverjet shares are suspended from trading at the London Stock Exchange and it is feared that shareholders may receive nothing from their investments.

Silverjet is the latest all-business class airline to collapse recently. US rivals Maxjet and Eos Airlines have both been forced out of business by high fuel costs, driven by the rapidly increasing price of crude oil. Silverjet's last flight left Dubai for Luton on Friday.