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Silverjet Suspends OperationsMay 30, 2008 By: David Eisen
First MAXjet, then EOS, now Silverjet. The all business-class carrier has become the third to cease operations after a key funding deal did not come through as expected. Silverjet operated service to Newark, NJ, and Dubai from its base at London's Luton Airport. A statement from Silverjet says that the airline is still in discussions for funding but that nothing had materialized yet. Its last flight departed Dubai Friday morning.
The carrier was expecting to receive $25.1 million from investor Viceroy Holdings, $5 million of which was supposed to be received on May 2, but never came through.
MAXjet Airways was the first such business-only carrier to fold last year after running out of money; EOS, which operated between London and New York, fell to the same fate just last month.
More than a dozen carriers have collapsed in the past six months largely due to the staggering price of oil, which has contributed to the industry possibly reporting $40 billion in combined losses this year, more than three times the level after the Sept. 11 terrorist attacks, says
independent airline analyst Chris Tarry, in a Bloomberg story.