Silverjet shares suspended on AIM

Silverjet is not the only airline to be struggling with high fuel costs

Shares in the loss-making business class airline Silverjet have been suspended after it failed to get money vital to the company's survival.

Silverjet said it had agreed a new loan agreement worth �8.4m earlier this month, and had then asked for �5m to be transferred to its bank accounts.

However, it has yet to receive the cash and as a result asked the London Stock Exchange to suspend its shares.

Despite the problems, Silverjet said it would continue services as scheduled.

Urgent matter

The UK airline, which flies from London's Luton Airport to New York and Dubai, is having to deal with high fuel prices and tight credit conditions.

A number of other airlines have also had problems, prompting many of them to raise fuel surcharges and start charging for services such as checking in bags.

Airlines only offering business class services have been hit particularly hard, with Eos and Maxjet already having ceased operations.

"Silverjet's working capital reserves are limited and advances under the loan facility are required as a matter of urgency," the company said.

"In the circumstances, 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," it added.

"Silverjet continues discussions with other parties, which have confirmed an interest in investing in the company.

Silverjet started services in January 2007 and operates three aircraft.

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