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| Silverjet calls in administrators | |
| (20 minutes later) | |
| Business airline Silverjet has gone into administration after financial problems forced it to suspend all its flights, leaving passengers stranded. | |
| The cancellations left about 7,000 UK and 2,500 non-UK customers needing to make alternative plans at short notice. | The cancellations left about 7,000 UK and 2,500 non-UK customers needing to make alternative plans at short notice. |
| The firm said other airlines were not obliged to honour unused Silverjet tickets and advised passengers awaiting return flights to make their own plans. | The firm said other airlines were not obliged to honour unused Silverjet tickets and advised passengers awaiting return flights to make their own plans. |
| It is the latest carrier to run into trouble amid the soaring cost of fuel. | It is the latest carrier to run into trouble amid the soaring cost of fuel. |
| Over the past few months, rival business airlines Maxjet and Eos have both gone out of business while other carriers are struggling. | Over the past few months, rival business airlines Maxjet and Eos have both gone out of business while other carriers are struggling. |
| Silverjet operated two daily services between London Luton and Newark Liberty International Airport, which serves New York City, and one between Luton and Dubai. | Silverjet operated two daily services between London Luton and Newark Liberty International Airport, which serves New York City, and one between Luton and Dubai. |
| The average cost of a return fare was £1,000. | The average cost of a return fare was £1,000. |
| Stranded passengers | Stranded passengers |
| Both outgoing and incoming flights between Luton and Newark were cancelled on Friday as was the outgoing flight to Dubai. | Both outgoing and incoming flights between Luton and Newark were cancelled on Friday as was the outgoing flight to Dubai. |
| The last service departed from Dubai at 0730 BST. | The last service departed from Dubai at 0730 BST. |
| You can see the difficulties they are in. It's going to be very difficult to operate a single-product model Laurie Price, aviation expert Business airlines struggle to take off | You can see the difficulties they are in. It's going to be very difficult to operate a single-product model Laurie Price, aviation expert Business airlines struggle to take off |
| Passenger Mark Silk arrived at Luton shortly after 0800 BST to board a Silverjet flight to New York with his mother and said he was initially "stunned by how good the service was". | Passenger Mark Silk arrived at Luton shortly after 0800 BST to board a Silverjet flight to New York with his mother and said he was initially "stunned by how good the service was". |
| But 10 minutes after they checked in their luggage, he said: "The same people who checked us in came back to us shaking, one of them was crying." | But 10 minutes after they checked in their luggage, he said: "The same people who checked us in came back to us shaking, one of them was crying." |
| "They apologised... they'd just heard the news." | "They apologised... they'd just heard the news." |
| He said the founder and chief executive Laurence Hunt had personally apologised to the affected passengers already at the airport. | He said the founder and chief executive Laurence Hunt had personally apologised to the affected passengers already at the airport. |
| "He was looking very disappointed, which must be an understatement for how he was feeling," Mr Silk added. | "He was looking very disappointed, which must be an understatement for how he was feeling," Mr Silk added. |
| Compensation | Compensation |
| For other passengers booked on later flights, a notice taped to the door of the Silverjet departure lounge was the first word they received of the travel situation. | For other passengers booked on later flights, a notice taped to the door of the Silverjet departure lounge was the first word they received of the travel situation. |
| "We hope to be able to bring you our very 'sivilised' flying experience again", the message concluded, angering some passengers who were not amused by the choice of words. | "We hope to be able to bring you our very 'sivilised' flying experience again", the message concluded, angering some passengers who were not amused by the choice of words. |
| UK customers that have booked just an airline ticket from Silverjet are not eligible to claim a refund from the CAA's Air Travel Organisers' Licensing (ATOL) scheme. | UK customers that have booked just an airline ticket from Silverjet are not eligible to claim a refund from the CAA's Air Travel Organisers' Licensing (ATOL) scheme. |
| SILVERJET FACTS Fare: London to Newark/Dubai £1099Number of aircraft: Three Boeing 767Number of seats: 100Seat size: 6ft 3in flatbed | SILVERJET FACTS Fare: London to Newark/Dubai £1099Number of aircraft: Three Boeing 767Number of seats: 100Seat size: 6ft 3in flatbed |
| But those who paid by credit card are urged to contact their credit card companies to see if they are eligible for a refund, or check any travel insurance policy taken out about airline insolvency cover. | But those who paid by credit card are urged to contact their credit card companies to see if they are eligible for a refund, or check any travel insurance policy taken out about airline insolvency cover. |
| Customers who booked flights and chauffeur drive or valet parking and those who booked flights through a travel agent are protected under ATOL. | Customers who booked flights and chauffeur drive or valet parking and those who booked flights through a travel agent are protected under ATOL. |
| The CAA said passengers returning to London from New York or Dubai should make their own flight arrangements home with other carriers and apply for reimbursement afterwards. | The CAA said passengers returning to London from New York or Dubai should make their own flight arrangements home with other carriers and apply for reimbursement afterwards. |
| Cost pressures | Cost pressures |
| Shares in the carrier were suspended earlier this month when it failed to obtain a critical $5m (£2.5m) loan. | Shares in the carrier were suspended earlier this month when it failed to obtain a critical $5m (£2.5m) loan. |
| But as recently as last week Silverjet said it would continue its services as scheduled but warned that it needed to secure additional funds urgently. | But as recently as last week Silverjet said it would continue its services as scheduled but warned that it needed to secure additional funds urgently. |
| At the time, it said it was in discussions with a number of parties looking to invest in the firm and these negotiations continue. | At the time, it said it was in discussions with a number of parties looking to invest in the firm and these negotiations continue. |
| Boss Lawrence Hunt apologised to passengers but many were not happy | Boss Lawrence Hunt apologised to passengers but many were not happy |
| "Silverjet continues to be in discussions with investors interested in supporting the business of Silverjet, however it has yet to conclude such discussions to its satisfaction," the airline said. | "Silverjet continues to be in discussions with investors interested in supporting the business of Silverjet, however it has yet to conclude such discussions to its satisfaction," the airline said. |
| Silverjet started services in January 2007 and operates three aircraft. | Silverjet started services in January 2007 and operates three aircraft. |
| Airlines across the board are struggling to deal with rising cost pressures, many of them having to raise fuel surcharges and start charging for services such as checking in bags. | Airlines across the board are struggling to deal with rising cost pressures, many of them having to raise fuel surcharges and start charging for services such as checking in bags. |
| Aviation analyst Laurie Price told the BBC that the soaring cost of jet fuel was a "serious problem" for airlines, particularly business airlines. | Aviation analyst Laurie Price told the BBC that the soaring cost of jet fuel was a "serious problem" for airlines, particularly business airlines. |
| "You can see the difficulties they are in. It's going to be very difficult to operate a single-product model," Mr Price added. | "You can see the difficulties they are in. It's going to be very difficult to operate a single-product model," Mr Price added. |
| At the other end of the spectrum, budget airlines are also being squeezed. | At the other end of the spectrum, budget airlines are also being squeezed. |
| Oasis Hong Kong, which operated daily flights between London and Hong Kong, applied to go into liquidation in April. | Oasis Hong Kong, which operated daily flights between London and Hong Kong, applied to go into liquidation in April. |
| Low-cost short-haul airlines Easyjet and Ryanair have both warned recently that profits will be significantly lower in 2008. | Low-cost short-haul airlines Easyjet and Ryanair have both warned recently that profits will be significantly lower in 2008. |