Silverjet airline goes under

By Rhys Jones and Chris Wills

LONDON (Reuters) - Silverjet SILJ.L has become the third business-class-only airline flying between London and New York to collapse, after failing to get an emergency $5 million (2.5 million pound) loan.

The company, launched at the start of 2007, on Friday called in administrators, grounded its fleet and said it did not believe there was likely to be any value realised for shareholders.

Sky-rocketing fuel prices and worsening economic conditions in Britain and the United States have buffeted Silverjet, having already sent rivals Eos and MAXJet out of business.

The airline industry was keenly watching business-class-only airlines since the first started flying in 2005 to see whether they could steal lucrative customers from established airlines such as British Airways (BAY.L) and Virgin Atlantic VA.UL.

The new airlines tried to entice premium customers away from other transatlantic carriers with cheaper tickets, more leg room and quicker check-ins at non-hub airports such as Luton and Stansted, both north of London.

Silverjet, which flew 88,000 passengers in just over a year, said on Friday it had not been able to get its hands on a hoped-for $5 million loan from Abu Dhabi-based investors that had been initially agreed.

Administrators from Begbies Traynor will now undertake a review of assets.

The airline had needed the emergency injection of cash to avoid grounding its fleet of three planes -- which also operate between London and Dubai -- for good.