05.1.2008 | 11:09 am | Blogroll, Flight Comparison
While the rest of the business class airline sector continues to struggle under increasing costs and falling passenger numbers it seems that Silverjet may have found an investor to help them through the bad times.
The Silverjet airline has been at the centre of much speculation over the last few months with cash running low, costs powering ahead and passenger numbers plummeting, so the recent news has surprised many. The company has confirmed that an Abu Dhabi based investor has agreed to invest £12.7 million into the group immediately with a possible further injection of up to £38 million in the medium to longer term. So what do they see in this relatively small business airline?
The Middle East has long been an investment hotbed for the airline industry with passenger figures and airport numbers increasing over the last few years. It seems that the chance to add a business class airline to the portfolio has been too good an option to pass up, and with Silverjet struggling, the price is relatively cheap. So does this mark the end of the downturn?
While there will be other smaller airlines looking at this deal and rubbing their hands in anticipation, it does not mark the end of the recent turmoil in the sector. The price of oil is set to move substantially higher, customer numbers are likely to fall before they stabilise and the industry is forever at the centre of an increasing tax burden from the authorities. Whether this has been a lucky escape for Silverjet or they really have built up a smaller airline with great potential for the future remains to be seen.
