Silverjet

Silverjet was a British long-haul airline built around an all-business-class model. The company was created as Silverjet Aviation Ltd. in 2004 by Lawrence Hunt and developed its operating platform at London Luton Airport, where it sought to combine scheduled intercontinental flying with a more private-terminal-oriented passenger experience. Rather than offering multiple cabin classes, Silverjet configured its aircraft exclusively for business-class travel and marketed the service to corporate travelers and affluent leisure passengers who wanted a less crowded and more streamlined alternative to conventional network airlines. The airline began preparations for commercial operations in 2006 and obtained sufficient backing to join the Alternative Investment Market, or AIM, on 12 May 2006. It purchased two Boeing 767-200 aircraft in August 2006; the aircraft had previously been operated by Thomsonfly and were delivered to Silverjet in March and October 2007. Silverjet also acquired British charter operator Flyjet in October 2006. That transaction brought two Boeing 757s, one Boeing 767, and Flyjet's Air Operator's Certificate, operating licence, and worldwide route licence. Although the wider fleet acquired through Flyjet expanded the company's assets and regulatory platform, the scheduled Silverjet operation ultimately centered on Boeing 767-200 aircraft. Silverjet began accepting bookings in October 2006, with an advertised standard fare of £999. Its first scheduled service, from London Luton to Newark Liberty International Airport, operated on 25 January 2007. A second daily Newark frequency was added in September 2007. The airline then expanded to the Middle East, beginning daily flights from London Luton to Dubai International Airport on 18 November 2007. It also carried cargo in the underfloor holds of its Boeing 767 passenger aircraft. Further long-haul destinations were contemplated, but the expansion plan was overtaken by the company's deteriorating financial position. A key part of Silverjet's differentiation was its airport proposition. It operated a private passenger terminal at London Luton, used a dedicated check-in area and Silver Lounge at Newark, and used Dubai's executive terminal. These facilities were intended to reduce the friction associated with conventional airport processing and reinforce the airline's premium, private-jet-adjacent positioning while retaining scheduled airline economics. Silverjet also promoted itself as an environmentally conscious carrier. It claimed to be the world's first carbon-neutral airline and initially included a mandatory carbon-offset contribution in ticket prices. In October 2007, the offset arrangement was changed so that passengers could choose whether to accept the recommended contribution, following an increase in the United Kingdom's Air Passenger Duty. The airline received an Environmentally Aware Airline award from the Institute of Transport Management in 2007. The business proved vulnerable to funding pressures. In early May 2008, Silverjet announced an intended $8.4 million loan facility from Viceroy Holdings, but it could not access the urgently required portion of the facility. Trading in its AIM shares was suspended on 23 May 2008. On 30 May, the company announced the immediate suspension of all flights because it had failed to secure the necessary funding. The final operating flight, from Dubai to London Luton, arrived that day. A proposed acquisition by Ireland-based Kingplace, acting for unnamed private clients, was announced on 10 June but collapsed three days later. Silverjet entered liquidation, approximately 420 employees were made redundant, and the fleet was permanently grounded. The company therefore remains a defunct example of the short-lived all-business-class airline model of the mid-2000s.

Silverjet Aviation Ltd. was established in 2004 by Lawrence Hunt as an attempt to build a scheduled airline focused entirely on business-class long-haul travel. The company developed its base at London Luton Airport rather than at a traditional major international hub. This choice supported its plan to provide a less congested and more private airport experience, including dedicated passenger facilities. The airline prepared for launch during 2006 and obtained sufficient funding to begin trading on the London Stock Exchange's Alternative Investment Market on 12 May that year. It acquired two Boeing 767-200 aircraft in August 2006 from Thomsonfly. Those aircraft were delivered in March and October 2007 and became the core of Silverjet's scheduled operation. In October 2006, the company also acquired British charter airline Flyjet. The purchase included two Boeing 757s, one Boeing 767, an Air Operator's Certificate, an operating licence, and a worldwide route licence. Silverjet's published fleet before its collapse consisted of three Boeing 767-200 aircraft. The carrier's booking platform began taking reservations on 12 October 2006. Its first scheduled flight departed London Luton for Newark Liberty International Airport on 25 January 2007. Silverjet expanded the route to two daily services in September 2007. On 18 November 2007, it introduced a daily London Luton–Dubai route. The company also used the cargo capacity beneath its passenger cabin to carry freight between London and Newark. Management discussed additional long-haul destinations, but the planned expansion did not proceed because financial problems became increasingly urgent. Silverjet tried to distinguish itself from conventional airlines through both its cabin product and its ground operation. All seats were sold as business class, avoiding the mixed-cabin model used by most long-haul carriers. At London Luton, the airline operated what was described as a private passenger terminal. At Newark, it maintained a separate check-in area and Silver Lounge, while at Dubai it used the executive terminal. The facilities offered food, beverages, seating, and internet access and were intended to give passengers a more efficient premium journey. Environmental messaging was another feature of the brand. Silverjet claimed to be the first carbon-neutral airline and initially built a carbon-offset contribution into every ticket. In October 2007, it made the recommended offset optional after the United Kingdom doubled Air Passenger Duty. The company received the Institute of Transport Management's Environmentally Aware Airline award in 2007, in addition to several travel and design awards for its service concept. The airline's financial model was unable to withstand its funding requirements. In early May 2008, Silverjet said it had arranged an $8.4 million loan facility with Viceroy Holdings, described as a Middle Eastern investor. The company nevertheless failed to draw down the $5 million it urgently required. Trading in Silverjet's AIM shares was suspended on 23 May 2008. On 30 May, the chief executive announced that the airline would stop operating and suspend every flight immediately. The last flight was service SLR254, which arrived at London Luton from Dubai at 15:00 GMT on the day of the announcement. A possible rescue appeared on 10 June 2008, when Ireland-based Kingplace was reported to be acquiring Silverjet for unnamed private clients. The proposed transaction failed on 13 June. Silverjet then entered liquidation and all approximately 420 employees were made redundant. On 19 June, Lawrence Hunt rejected suggestions that Arabjet would revive the business and stated that the fleet would remain grounded permanently. Silverjet's short operating life illustrates both the appeal and the financial difficulty of an independent, all-business-class transatlantic and Middle Eastern airline operating outside a large network group.

• 2008

  Operations cease

  [1]Silverjeten.wikipedia.org

  Silverjet suspends all flights on 30 May after failing to secure necessary financing.

• 2008

  Liquidation follows failed rescue

  [1]Silverjeten.wikipedia.org

  A proposed Kingplace acquisition collapses on 13 June, leading to liquidation and mass redundancies.

• 2007

  First scheduled flight

  [1]Silverjeten.wikipedia.org

  Silverjet launches its first scheduled London Luton–Newark service on 25 January.

• 2007

  Dubai route opens

  [1]Silverjeten.wikipedia.org

  Daily London Luton–Dubai flights begin on 18 November.

• 2006

  Silverjet joins the AIM market

  [1]Silverjeten.wikipedia.org

  The company begins trading on the Alternative Investment Market of the London Stock Exchange on 12 May.

• 2006

  Flyjet acquisition

  [1]Silverjeten.wikipedia.org

  Silverjet acquires British charter operator Flyjet, gaining aircraft and important operating licences.

• 2004

  Silverjet Aviation is established

  [1]Silverjeten.wikipedia.org

  Lawrence Hunt creates Silverjet Aviation Ltd. to develop an all-business-class scheduled airline.

A premium, all-business-class alternative to conventional long-haul airlines, combining lie-flat-style business travel, private-terminal facilities, simplified airport processing, and an environmental-offset proposition.

• Passenger air travel · 2007

  All-business-class scheduled flights

  Silverjet's central product was long-haul scheduled air travel with a single business-class cabin. The airline initially connected London Luton with Newark and later added Dubai, targeting passengers willing to pay for a premium cabin without the scale or complexity of a conventional network airline.

• Airport services · 2007

  Silver Lounge and private-terminal services

  The airline complemented its cabin product with dedicated ground facilities. At London Luton it operated a private passenger terminal, while Newark featured a separate check-in area and Silver Lounge. These facilities provided hospitality services and internet access and were designed to shorten and simplify the airport journey.

• Air cargo · 2007

  London–Newark cargo service

  Silverjet used the underfloor cargo capacity of its Boeing 767 passenger aircraft to carry freight between London and Newark. Cargo was an ancillary use of the passenger fleet rather than a separate freighter operation.

• 2007Carbon-neutral airline and offset programme

  United Kingdom · United States · United Arab Emirates

  Silverjet promoted itself as a carbon-neutral airline and initially included a mandatory carbon-offset contribution in ticket prices. The programme was presented as part of the brand's premium and environmentally aware positioning.

  Outcome. In October 2007, the recommended offset became optional after the United Kingdom doubled Air Passenger Duty. Silverjet received an Environmentally Aware Airline award from the Institute of Transport Management in 2007.

  Source

• 2008

  Emergency financing attemptStrategy

  Background

  Silverjet required additional working capital to continue operating and support its route network.

  Action taken

  The company announced an intended $8.4 million loan facility from Viceroy Holdings but could not access the urgently needed $5 million portion.

  Aftermath

  The financing failure contributed to the suspension of AIM share trading and the subsequent shutdown of the airline.

  Announced loan facility. $8.4 million (May 2008)

  Source

• 2008

  Suspend all flights and enter liquidationOther

  Background

  Silverjet could not secure the funding required to continue its scheduled operation.

  Action taken

  The company suspended every flight on 30 May, rejected the prospect of a later revival after a rescue transaction failed, and entered liquidation in June.

  Aftermath

  Approximately 420 staff were made redundant and the fleet was permanently grounded.

  Source

• 2007

  Launch of London–Dubai serviceProduct launch

  Background

  After establishing its transatlantic service, Silverjet sought to expand its long-haul network.

  Action taken

  The airline began daily flights between London Luton and Dubai International Airport on 18 November.

  Aftermath

  Further expansion plans were later halted as the airline's financial difficulties intensified.

  Source

• 2006

  Adopt an all-business-class operating modelStrategy

  Background

  Silverjet was designed to compete through a premium single-cabin proposition rather than through the mixed-cabin structure of major network airlines.

  Action taken

  The airline configured its scheduled long-haul proposition around business-class-only service and private-terminal facilities.

  Aftermath

  The model created a distinctive premium brand but left the company dependent on high-yield demand and external financing.

  Source

• 2008

  Silverjet shares suspended amid funding problems[1]Silverjeten.wikipedia.org

  Bankruptcy · Regulation

  Trading in the airline's AIM-listed shares was suspended after Silverjet was unable to access urgently needed financing.

• 2008

  Silverjet suspends all flights[1]Silverjeten.wikipedia.org

  Bankruptcy

  The airline ceased operations with immediate effect after failing to secure sufficient funding.

• 2008

  Proposed Silverjet rescue collapses[1]Silverjeten.wikipedia.org

  M&A · Bankruptcy

  A proposed purchase by Kingplace fell through, after which Silverjet entered liquidation and made approximately 420 employees redundant.

• 2007

  Silverjet launches London–Newark scheduled service[1]Silverjeten.wikipedia.org

  Product launch

  The airline operated its first scheduled flight between London Luton and Newark Liberty International Airport.

• 2007

  Silverjet adds a second daily Newark flight[1]Silverjeten.wikipedia.org

  Product generation

  The carrier increased its London Luton–Newark service to two daily flights.

• 2007

  Silverjet starts London–Dubai service[1]Silverjeten.wikipedia.org

  Product launch

  Daily scheduled service between London Luton and Dubai International Airport began, extending Silverjet's network into the Middle East.

• 2006

  Silverjet begins accepting passenger bookings[1]Silverjeten.wikipedia.org

  Product launch

  Silverjet's website opened for passenger reservations, with a standard advertised fare of £999.

1. 1Silverjeten.wikipedia.org