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Silverjet failure won't be probed
Hugo Duncan6 Nov 2008
Bust airline Silverjet was dealt a hammer blow today when City investigators decided not to probe its downfall.
The loss-making business-class carrier collapsed in May after a would-be investor from the Middle East failed to stump up funds it had promised.
Founder Lawrence Hunt complained to the Serious Fraud Office but the Financial Services Authority today decided not to investigate.
Central to the allegations were banking documents provided by the investor, Viceroy, in the build-up to the aborted deal. Hunt, who lost £2.5 million when Silverjet collapsed, said he was disappointed at the outcome, but added that he still had faith in the business model.
Silverjet began flying in January 2007, offering business class flights between Luton and New York for £999. A Dubai service followed before Silverjet ran out of cash.
Viceroy had promised it as much as $100 million (£63 million) of funding.
