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Business airline bags investor

Silverjet ready to dominate luxury flights market
Silverjet flies to New York

All business class airline Silverjet has found the investor it hopes will enable it to secure its future as a provider of business travel.

The investor is Viceroy Holdings, an affiliate of international luxury development fund Viceroy Fund which has interests in the USA and United Arab Emirates.

"I am delighted to confirm that following the announcement on 30 April concerning the Memorandum of Understanding, Silverjet has now entered into a binding conditional agreement and secured the commitment of a high quality, long-term strategic investor. Viceroy is committed to the development and expansion of Silverjet, and proposes to inject further capital to develop the Silverjet proposition,” explains Silverjet chief executive, Lawrence Hunt.

"This investment means that Silverjet is now well placed, both financially and strategically, to exploit the opportunities which exist in the airline and all business class market - a market which we now dominate," Hunt adds.

Silverjet can borrow up to £8.4 million under the terms of a Loan Facility Agreement. The airline proposes to raise another £4.3 million by issuing just over 25 million shares to Viceroy at 17p per share.

Under the MOU of 30 April, Viceroy also intends to invest up to a further £38 million in Silverjet. “Negotiations concerning this further investment and the strategy for the rollout of the Silverjet brand and concept are continuing, details of which will be announced in due course,” the airline says in a press statement.

Silverjet adds that “forward bookings are particularly strong” and says that average fares have risen steadily, to £550 in April on its flights from Luton airport to New York and Dubai.

Written by: Nick Purdom