Silverjet, the business-class carrier that ceased operations 13 days ago, said it plans to resume flying after agreeing to be bought by Dublin-registered firm Kingplace.
Silverjet, which flew to New York and Dubai from London Luton airport, was purchased for an undisclosed sum in a deal due to be completed by June 13th, administrator Begbies Traynor Group said in a statement today.
Kingplace is registered in Ireland and is managed by Geneva-based investment trust Heritage Cie.
Ian Ilsley, chairman of Heritage and a Kingplace director said the airline could be flying within weeks once terms with Begbies Traynor are finalized. The deal is subject to regulatory approval. The offer from Kingplace is being made on behalf of private clients, it said.
Grounded on May 30th after its funds ran out as fuel costs spiraled, Silverjet has never made a profit and was the last business-only operator between London and the US after Eos Airlines and MAXjet Airways went bankrupt.
Silverjet shares were suspended a week ago. The stock was 88 per cent lower than when first sold to the public in May 2006, giving a market value of £8.38 million ($16.5 million).
"We now have the necessary backing from a long-term investor to relaunch Silverjet,'' chief executive officer Lawrence Hunt said in today's statement.
"We will be working around the clock to launch our New York and Dubai services as quickly as possible."
All of the airline's employees are likely to be retained and existing tickets will be honored, he added. Almost 10,000 passengers were affected when Silverjet stopped flying, according to the UK's Civil Aviation Authority.
"We are pleased to have agreed principal terms with Kingplace to relaunch the airline," Mark Fry, senior partner at Begbies and joint administrator of Silverjet, said in the statement.
"This agreement is excellent news for the company's suppliers, staff and loyal customers." Oil is trading near $132.50 a barrel, compared with about $55 when Silverjet began flying on January 25th, 2007. Mr Fry has been quoted in media reports as saying an investment of more than £50 million (€63.1m) in debt and equity would be necessary to allow the airline resume operations.
Flights were operated using three Boeing 767 planes with 100 flatbed seats, or less than half the usual capacity. Mr Hunt blamed negative analyst notes for passengers being reluctant to book with the airline.
Agencies