Silverjet soars after bid approach

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The Independent Online

Shares in business-class airline Silverjet soared today after the company said it had received a takeover offer.

The company, which operates from Luton Airport to Dubai and Newark in the United States, did not disclose the party or parties involved in the approach. However, it did say that it was in discussions regarding the proposal, which may or may not lead to an offer for the company.

Silverjet made the statement to the stock market after seeing an upward movement in its share price. The stock rose by another 25 per cent today.

The company, which made its first commercial flight in January 2007, achieved its highest ever monthly revenues in March, with more than 10,000 revenue-generating seats. Passenger numbers also grew by 23 per cent over February despite an early Easter falling during the month, a traditionally quieter period for business travellers.

While Silverjet did not generate an operating profit and was not cash generative in March, chief executive Lawrence Hunt said the business made solid progress towards its objective of becoming profitable as quickly as possible.

He added: "Whilst the economic climate is very challenging for all airlines, Silverjet's fares at up to 50 per cent discount to legacy airlines business class fares are attracting an increasing number of corporate customers."

Silverjet runs two daily services to Newark and started a daily flight to Dubai in November.