Business Class Only Airline Grounded

Posted by John Carney, May 30, 2008, 10:35am

Silverjet, the U.K. airline which flew exclusively business class flights, is permanently grounded. It has run out of cash after it failed to secure $5 million in emergency funding, Bloomberg is reporting. Founded 16 months ago at the peak of the credit fueled financial boom, the airline fell victim to falling demand for trans-Atlantic business travel and rising fuel costs.

It's a rough time for airlines. More than a dozen have collapsed in the past six months as oil prices skyrocketed. The industry may report $40 billion in combined losses this year, according to Bloomberg.

In an ironic twist, the last Silverjet flight took off from oil-rich Dubai today.

(Silverjet was, at some point, a DealBreaker sponsor.)

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Comments

Posted by guest, May 30, 2008 10:54AM

There was no comparison between SilverJet and EOS...It was a given that if EOS failed SilverJet would eventually follow suit.

This was the last business class only carrier to London, now if you want EOS type service you are forced to spen upwards of $7000 round trip on Virgin Upper Class.

Posted by Suits, May 30, 2008 11:02AM

IF MHL goes out of business, we've got a real problem.

Posted by guest, May 30, 2008 11:02AM

Oil prices plummeted? Maybe skyrocketed...

Posted by guest, May 30, 2008 11:03AM

plummeted, skyrocketed, whatever

Posted by guest, May 30, 2008 11:03AM

"Oil prices plummeted" in the last six months? I guess I should've sold my long positions six months ago. Damnit, always on the wrong side!

Posted by guest, May 30, 2008 11:08AM

watch those plummeting gas prices!!

Posted by guest, May 30, 2008 11:11AM

MHL is too MHL to fail.

Posted by guest, May 30, 2008 11:16AM

I love MHL so much I drink my piss afterwards

Posted by guest, May 30, 2008 11:20AM

The CFTC has been a ship without a rudder since Ken Lay died.

Posted by guest, May 30, 2008 11:25AM

Uh, when is your front-page survey asking whether the Bear Stearns shareholders will approve the merger with JPMorgan going to come down?

Posted by guest, May 30, 2008 11:35AM

Oil-rich Dubai? I'm not an expert but I thought it was common knowledge that unlike its neighbors, Dubai has very little in the way of oil reserves (accounts for < 5% of GDP) and that its development has been based on the attraction of foreign investment by acting as a regional financial hub through the promotion of western-friendly, laissez-faire economic, and to a certain extent, social, policies. Dubai doesn't have oil riches. Oil riches are spent in Dubai. Wouldn't expect DB to appreciate the difference though.

Posted by guest, May 30, 2008 11:37AM

let's not get bogged down with the details people

Posted by guest, May 30, 2008 11:38AM

@ 11:35...I would agree, Dubai is the playground for the oil rich, they are capitalizing on the oil rich countries fortunes by providing a nearby payground.

Posted by guest, May 30, 2008 11:40AM

@11:38--You are correct. Dubai is running out of oil and will have none to speak of soon. Hence becoming the Las Vegas of the Middle East and accommodating all the infidels.

Posted by guest, May 30, 2008 11:46AM

Dubai oil production peaked about 15 years ago at about 400,000 bopd.

I guess when you are a journalist you define "rich" as anyone with enough money to buy someone a cheesesteak.

Posted by guest, May 30, 2008 11:47AM

"Silverjet was, at some point, a DealBreaker sponsor"

If that wasn't a sell signal, I don't know what is.

Nobody who reads this site flies business class. They all ride the bus.

Posted by John Carney, May 30, 2008 11:51AM

...Says a guy reading the site.

Posted by guest, May 30, 2008 12:05PM

@11:47

If your firm is making you travel in steerage you might want to start looking elsewhere!

Posted by BSD, May 30, 2008 12:09PM

@11:47 what kind of a firm doesn't give you business class for intercontinental flights?

Posted by guest, May 30, 2008 12:10PM

Looks like Silverjet is a now a bunch of airplanes without partners.

Posted by guest, May 30, 2008 12:26PM

My firm makes me hitchhike and stay with relatives when I travel. If no relatives are nearby, I have to hit up craigslist for the cheapest room & board within a 100-mile radius.

Posted by guest, May 30, 2008 12:28PM

Heard a radio ad the other day, MHL is coming out with a Mike's Mohito.

Sweet Jesus!!!!

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