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Dubai: Silverjet, the British business-class-only airline that began flying daily to Dubai in November, ceased operating yesterday, becoming the third premier segment carrier since December to run out of business.
The company said it could not receive $5 million it had requested under an earlier agreed $100-million cash injection from UAE-based Viceroy Holdings LLC.
Limited reserve
Silverjet said its "working capital reserves were limited and that advances under the loan facility were required as a matter of urgency".
The company said in a statement it "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."
Chief executive officer Lawrence Hunt advised customers on the company's website "to seek alternative travel arrangements with other carriers, and contact your credit card company or travel agent directly for information on obtaining refunds."
Virgin Atlantic said it will offer "stranded passenger fares" to Silverjet customers who are holding tickets for travel between May 30 and June 30.
A rising fuel bill, coupled with the economic slowdown in the US have hit the premier airline model hard and had led to the demise of US-based MaxJet in December and Eos in April.
Based at Luton airport in the UK, Silverjet started in January 2007 and served the New York and Dubai routes. Its last service was on Friday morning's flight from Dubai to London Luton.
Difficult times
Hunt told Gulf News earlier in May that the market "remains difficult right now, especially in New York and increasingly in London".
However, he sounded upbeat about opening a hub in either Dubai or Abu Dhabi.
As per the deal with Viceroy, a fund based in New York and Dubai, $25 million was available to the airline immediately and the remainder was to be used for expansion.
The original source of the fund's money was an undisclosed government investment agency.
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