Fraud office could probe Silverjet collapse

The collapse of business class-only airline Silverjet could be investigated by the UK-based Serious Fraud Office (SFO).

The airline collapsed weeks after it announced it had arranged a loan of up to $100 million from Viceroy Holdings, an Abu Dhabi-based investment house.

The first instalment of $5 million failed to arrive and days later Silverjet grounded planes, leaving business travellers stranded.

The SFO is now examining a complaint it has received and weighing up whether there are any grounds to launch a full investigation, UK daily The Telegraph reported on Wednesday.

The airline, its advisers and administrators have not heard from the investor, part of the Viceroy Fund, since shortly after the collapse.

Silverjet launched its business class-only flights between Luton and New York for just under $2,000 in January 2007. The business model proved successful and it expanded to offer flights to Dubai.

But rising oil prices and a cutback in business travel saw Silverjet and fellow business class-only airlines Eos and MAXjet suffer.

The future of Silverjet looked secure when Viceroy signed a memorandum of understanding to put up to $100 million into the airline at the end of April but the money never arrived.

Viceroy was unable to respond to inquiries by the UK paper for comment while the SFO declined to comment.

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