London Skies Grow Cloudier
Silverjet Needs Savior With Very Deep Pockets

For bankers and other executives accustomed to flying in and out of London in style, the skies have grown considerably cloudier.

Over the weekend, all-business-class Eos Airlines, which was operating premium services from London's Stansted Airport to New York's John F. Kennedy International Airport, filed for bankruptcy protection. Its collapse follows the demise a few months ago of upscale-oriented rival MAXjet Airways. Both struggled with rising fuel costs and ultimately failed to secure adequate financing.

That leaves the niche high-end market to Silverjet. The recently struggling Britain-based airline said on Wednesday that it is close to securing a $25 million investment from a United Arab Emirates-based investment fund that it declined to name. This should tide over the carrier in the short term.

But the carrier faces a tough battle to stay aloft -- with its finances in shaky condition, it hasn't been able to hedge its fuel costs. Silverjet, which runs services from Luton Airport some 30 miles outside of London to both Newark, N.J., and Dubai, failed to turn in its first operating profit in March as it had initially projected. Passenger numbers haven't been impressive, with
a load factor of 65% in March.
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