British airline Silverjet was forced to close business 16 months after being founded because of the continuous increase in oil price. In January 2007, the moment the company began operations, oil price was $55 a barrel, compared with today’s $125.

Silverjet tried to get an emergency fund of $5 million that had been promised by Middle East investor Viceroy Holdings LLC, but was refused. The airline had previously signed a deal with Viceroy which was supposed to raise its capital with $100 million.

The British airline is not the only airline company having difficulties. The higher and higher oil price is affecting the entire industry, who predicted $40 billion in combined losses for 2008, reaching the largest loss in recent history.

While the company officials have stated that they are looking for and are already negotiating with other investors for money that will allow its planes to fly again, there a little chances for a deal to be closed. At this moment, the airline industry seems a to be a rather big no-no for people looking to invest their money.

The company was one of the three airlines that offered business-class only flights between London and New York and was the last survivor of the three. The idea that the whole concept of business-class airlines was constructed on, was that normal airlines tend to make most of their profit from the business and first class tickets.

However, the passenger who opted for these more expensive flights would still have to wait a lot in the crowded airports where the planes of these companies take off from. Making an airline that would offer these people the same benefits they would have gotten from normal airlines, but at smaller prices and departures from less crowded airports, would normally have become a success.

Even though Silverjet had managed to increase its profitability every month, the higher and higher cost of flight finally made the company close operations.