Silverjet fails to secure funding, shares suspended

Earlier this month, loss-making airline Silverjet revealed it had secured a $25 million (£12.7 million) investment to keep the business class airline flying.

However, this morning the airline admitted that it has yet to receive the cash and has asked the London Stock Exchange to suspend its shares.

In spite of the share suspension and the collapse of funding, the airline, which claims to be the world’s first carbon neutral airline, said it would continue services as scheduled.

Silverjet is based at London’s Luton Airport and flies to New York and Dubai and has been struggling with losses since it was launched.

Silverjet’s share price has collapsed by 90% since it floated 18 months ago, last year it was losing approximately £1 million a month.

Several other airlines have been experiencing problems, primarily due to the price hikes in fuel.

Oasis Hong Kong Airlines recently announced it was to stop flying and applied for a voluntary liquidator. US carriers including ATA Airlines, Aloha Airgroup and Skybus Airlines all ceased trading in March.

More recently, EOS and Maxjet revealed they would cease flying.

A spokesperson for Silverjet said working capital reserves are limited and advances under the loan facility are required as a matter of urgency.

Consequently, the company 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, added the spokesperson.

Crisis talks are being held between the airline and the Abu Dhabi investment fund as well as discussions with other parties, which have confirmed an interest in investing in the company.

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