Silverjet shares suspended; flights still operating
23.05.08
Luton Airport based all business class airline Silverjet has suspended trading of its shares on the AIM market of the Stock Exchange amid funding difficulties. The airline said it had yet to receive a $5 million draw down from a planned loan it was expecting on May 2, and that this casts doubts on planned loans to the airline of £8.4 million and a £4.3 million investment from Dubai-based international luxury development fund Viceroy Holdings. It is not known why Viceroy has not provided the funding.
Silverjet, which operates to New York and Dubai, said services ‘continue as scheduled’. But the airline reiterated a statement issued on April 30, saying: ‘Silverjet's working capital reserves are limited and advances under the Loan Facility are required as a matter of urgency.’
The airline said this morning: ‘In the circumstances, Silverjet has requested, and the London Stock Exchange has confirmed, an immediate suspension in the trading of the ordinary shares of the company on the AIM market. Silverjet continues discussions with other parties, which have confirmed an interest in investing in the company.’
The suspension of the airline’s shares follows the collapse of US all-business transatlantic carriers MAXjet before Christmas and Eos in April. Record oil prices and the global economic slowdown are having an impact on all airlines, with thinly capitalised airlines operating older, less efficient planes and with limited fuel hedging seen as particularly vulnerable.
Unless the funds are forthcoming soon, it looks like Silverjet will be the next airline to fold. As a business passenger, we would not be booking flights with the airline right now. Without an injection of funds quickly, this announcement can only speed its demise, and we would not expect to see them still open for business next week.
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