Swiss firm 'in Silverjet offer'

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

A Swiss investment firm has made an offer for struggling business airline Silverjet, a report says.

Ireland-based Kingplace, which is managed by Swiss management company Heritage, told Reuters it was making an offer on behalf of private clients.

Silverjet went into administration last month after financial problems forced it to suspend all its flights, leaving passengers stranded.

It is understood the suitors would look to buy and relaunch the business.

Reuters reported Kingplace director Ian Ilsely as saying his firm was "excited at the prospect of acquiring Silverjet and resuming operations as quickly as possible with the existing staff".

"We will be investing in the future development and success of the brand. We will make a further announcement in due course," he added.

And Silverjet chief executive Lawrence Hunt was also reported as saying: "I am delighted to confirm that Kingplace is in conversation with (administrator) Begbies Traynor about Silverjet resuming operations in the near future."

Neither party could be contacted by the BBC.

'Unique position'

Silverjet is the latest carrier to run into trouble over the soaring cost of fuel.

Over the past few months, rival business airlines Maxjet and Eos have both gone out of business while other carriers are struggling.

The cancellations left about 7,000 UK and 2,500 non-UK customers needing to make alternative plans at short notice.

Mark Fry, a partner at administrators Begbies Traynor has said that he considered that the carrier's unique position as the last business class-only transatlantic airline operator underpinned its potential as a going concern, given adequate funding.

Silverjet operated two daily services between London Luton and Newark Liberty International Airport, which serves New York City, and one between Luton and Dubai.

The average cost of a return fare was �1,000.

Shares in the carrier were suspended earlier this month when it failed to obtain a critical $5m (�2.5m) loan.

Silverjet started services in January 2007 and operates three aircraft.

Airlines across the board are struggling to deal with rising cost pressures, many of them having to raise fuel surcharges and start charging for services such as checking in bags.

At the other end of the spectrum, budget airlines are also being squeezed.

Oasis Hong Kong, which operated daily flights between London and Hong Kong, applied to go into liquidation in April.

Low-cost short-haul airlines Easyjet and Ryanair have both warned recently that profits will be significantly lower in 2008.

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