Silverjet Sinks

Posted by: Kerry Capell on May 30

Here’s an update on a blog item I posted May 23

Turns out time’s run out for Silverjet, the world’s last remaining business class-only airline. Just shy of its second anniversary, the British-based carrier is calling it quits after admitting the $5 million cash injection it was expecting from United Arab Emirates-based investment fund Viceroy Holdings failed to arrive.

The company said in a statement: “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.”

Exactly a year ago, the prospects for this new breed of business class only services looked bright. Rivals Eos, Maxjet and Silverjet reported they were winning some market share from established carriers such as British Airways and others. With planes flying nearly two-thirds full, many began adding routes. Silverjet beefed up its services from London to New York with additional flights between London and Dubai.

But the double whammy of the credit crunch and sky high jet fuel prices took their toll. Eos and Maxjet went out of business in the last five months, now Silverjet. This morning’s flight from London Dubai is Silverjet’s last.

Meanwhile, BA and Virgin have wasted no time. Both airlines came out with special offers aimed at Silverjet passengers within hours of the news.