Will Silverjet be the next to close?

[Alan B. 5]

This taken from BBC news today:

 

Silverjet in talks over takeover

 

Struggling business class airline Silverjet has revealed it is in takeover talks with unnamed suitors, sending its shares soaring 38%.

 

The loss-making UK carrier, which flies from London's Luton Airport to New York and Dubai, says the talks may or may not lead to a formal takeover offer.

 

Aviation analyst Mike Stoddart told the Reuters news agency: "Without fresh equity, Silverjet hasn't got a future."

 

The firm raised £21m in November to increase its working capital.

 

Fuel impact

 

"We are not a fan of the business model and we think that without major changes, the company will run out of equity funds soon," said Mr Stoddart of Daniel Stewart.

 

Mr Stoddart caused Silverjet's shares to crash in January after he said it would run out of money because of the continuing high cost of aviation fuel.

 

Silverjet's shares closed up 38% to 21 pence in Thursday trading.

 

This is still 10% of their peak in March 2007.

 

A number of airlines have recently warned that higher fuel bills were hurting their profits, including budget carrier Easyjet.

 

Another airline, Oasis, which offered cheap flights from London to Hong Kong, ended all its services earlier this week and applied for liquidation.

 

Silverjet started services in January 2007 and operates three planes.

 

Maxjet also stop flying in December. Alitalia is hanging by a tread, Silverjet in deep trouble, I can't remember the last time so many airlines closed shop in such a short time. Is Eos in trouble too?

[Wilber Tan 0]

whos next??

dont so bad to predict la..

[Alan B. 5]

whos next??

dont so bad to predict la..

 

Not looking forward for more to fail but worried that the current climate is soon critical for the aviation world. Thinking of the many personnel of the affected airlines that are out of work. The US is in recession and we will feel the pain too.