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Silverjet rescue decision imminent
LONDON – Silverjet is still hopeful it will receive the first instalement of a rescue package as its backers “are still keen to invest”, a spokesman for the all-business airline said.
Silverjet flies behind London Luton airport and New York and Dubai.
The airline had entered into a memorandum of understanding with a United Arab Emirates investor to initially provide around US$25 million (£12.7 million) by means of debt and equity.
The airline said the investment would boost its working capital, which has deteriorated, and will also help its “limited†residual reserves.
The carrier was dealt a major blow on Friday when it became clear there were problems with the money it needs to keep flying. The cash lifeline from Middle East investors stalled as shares were suspended.
Mike Stoddart of London firm Daniel Stewart has predicted it is unlikely that Silverjet’s shares will regain a listing.
In a note it said: “We now estimate that it costs over £44,000 in fuel alone for a round trip to New York on a Silverjet B767, up from £28,600 at the time of the November 2007 fund raising.
“Against this background, we do not think anyone will bid and that, for Silverjet to survive, current shareholders will need to inject large amounts of fresh equity.”
The spokesperson for Silverjet said: “There will be an announcement in the next few days. Our investors are still in place but there is a problem at their end with the loan. Meanwhile we would like people to know that we are still flying.”
Silverjet hoped to use the new funds to assist the international rollout of the Silverjet brand into new markets within the Middle East, the Far East and Africa.
By Dinah Hatch and Ian Jarrett
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