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May 23, 2008

Silverjet Suspends Share Trading: Can Business Class Carriers Survive?

Filed under: Business Travel, 20/20, Silverjet — Rick Seaney @ 2:54 pm

Silverjet has suspended trading of their share on the AIM. Was it just a matter of time?

We’ve already scene the toll that rising fuel costs and struggling economies can have on business class travel. All-business class carriers MAXJet and eos have already vanished from the commerical air travel scene, and now Silverjet is facing the same problems that grounded those two airlines.

Joe Sharkey posted a copy of a Silverjet release today stating “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 of the London Stock Exchange.”

Silverjet will continue service, but the question becomes, for how long? Are promised investments going to come through, and will they be enough to keep the airline aloft? That remains to be seen.

Please visit our First Class Travel blog for the complete story on Silverjet’s latest announcement.

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1 Comment »

Rick,

We knew nearly 6 months ago that they were in severe trouble, and would likely fail, even when oil was a lot less than today.

While Silverjet repeatedly denied it, it was thought that their expenses were running twice their revenues. The $2400 round trip fares, held in place by competition from AA, could not sustain them. They would have needed to lower fares further to gain riders, and that is no win.

Aloha, http://beatofhawaii.com
Jeff Tucker
Beat of Hawaii and Beyond

Comment by beatofhawaii.com — May 23, 2008 @ 4:00 pm