Luxe airline Silverjet melts down, stops flying

Cash-strapped airlines are rushing to scoop up business travelers left jilted by Silverjet’s abrupt shutdown.

The British airline, which operated posh business-class-only service between London’s Luton Airport and Newark Liberty International, ceased operations without warning Friday, shutting down its Web site and abandoning its phone lines after $5 million of emergency funding fell through.

American Airlines, Virgin Atlantic Airways and British Airways scrambled to announce special fares for customers holding Silverjet tickets. The specialty airline operated two daily flights out of JFK that could accommodate 100 passengers per flight. It was unclear how many New York customers were stranded by the airline.

Silverjet’s failure signals the demise of the all-business class airline niche that emerged over the past two years. Three upstart carriers had landed in the New York area, promising high-class, glitzy service on the North Atlantic route.