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Silverjet Phoenix Or Zombie

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by Felix Salmon
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Jun 09 2008 12:00am EDT

Silverjet: Phoenix or Zombie?

Are you worried about $140 oil and the concomitant rise in jet-fuel costs? Heritage isn't. The Ireland-registered Swiss investment company wants to buy Silverjet for £5 million or so (call it 12 cents on the dollar for creditors) and get the all-business-class airline flying again. And there might even be a bidding war: there's reportedly at least one other firm offer on the table, and interest from other parties too.

But all-business-class airlines don't work, especially not when they're independently owned. Given the credit card holdbacks and enormous borrowing costs and generally adverse business conditions that any new owner would face, wouldn't it be easier and cheaper to simply burn a million pounds in cash? It would almost certainly be more fun.

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