Business | Aviation
Silverjet plans new hub in UAE
Silverjet, the British business-class-only airline, said it is considering setting up a new hub in either Dubai or Abu Dhabi after receiving a $100 million cash injection from a UAE-based investor.
- By Shakir Husain, Staff Reporter
- Published: 00:43 May 9, 2008
Dubai: Silverjet, the British business-class-only airline, said it is considering setting up a new hub in either Dubai or Abu Dhabi after receiving a $100 million cash injection from a UAE-based investor.
"The deal announced last week gives us financing to potentially open up a hub in the UAE. We are in negotiations with our new investor," Silverjet chief executive officer Lawrence Hunt said at a seminar.
An amount of $25 million was available immediately. The investment came from Viceroy Holdings, a fund based in New York and Dubai.
The source of the money is a government entity, but Hunt did not disclose its identity when approached by Gulf News. Outside the UAE, the airline is also looking at starting operations in India and China.
At present the airline has London-Dubai and London-New York services. The Dubai service accounts for one-third of its business, and the passenger seat factor, or the ratio of seats filled, on the route is 70 per cent.
The company plans to start long-haul services despite the business-class-only airline model coming under pressure amid soaring jet fuel prices.
US-based Maxjet collapsed in December and EOS went out of business last month.
Hunt acknowledged the market "remains difficult right now, especially in New York and increasingly in London."
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