Silverjet has won agreement from an unnamed investor to provide $25 million in funds to ensure it continues flying.
The deal would give the investor from the United Arab Emirates a 28% stake in the business-only carrier and Silverjet about $17 million in additional debt. But it depends on the approval of shareholders and the UK Civil Aviation Authority.
The carrier’s future has been called into question by the collapse of business-only transatlantic rival Eos Airlines on Sunday, as start-up airlines struggle with the record oil price.
Silverjet acknowledged it would need to find alternative funding “as a matter of urgency” if the deal falls through. It continues to lose money on its daily flights between London Luton and New York and Luton-Dubai. In a statement, the airline said its working capital had deteriorated and reserves were limited.
Chief executive Lawrence Hunt said: “We are delighted. It is particularly encouraging to have secured this agreement in a challenging environment for all airlines.”