• 30 May 2008 at 10:35 AM
  • Airlines

Business Class Only Airline Grounded

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.)

  • 15 Nov 2006 at 2:03 PM
  • Airlines

Deal of the Day: Uncovering Hidden Delta-US Air Synergies

deltausairmerger.jpgWe’ve been running through our financial models here in DealBreaker HQ. Okay. Not really. We’ve been doodling on cocktail napkins at Harry’s while we enjoy our liquid lunch. But we’ve none the less managed to uncover one potentially valuable and unreported synergy in the Delta-US Airways merger.
The two airlines have three recent bankruptcies between them—and after the merger both will continue to face challenges from fuel costs, employee costs, competition from cut-rate carriers and terrorism risks. So there’s a not to far-fetched chance that the combined company will face bankruptcy again.
And you know what? Bankruptcies are expensive. Everyone—debtors, creditors, purchasers—hires lawyers, and the lawyers get paid out ahead of almost everyone else. So next time around, instead of paying two sets of lawyers for Delta and US Airways, they can pay just one. Synergy, baby, synergy!