London-based airline Silverjet has announced suspension of operations, citing limited working-capital reserves and the failure of investors to follow through on funding.

The shutdown comes as no surprise to industry observers who have seen fellow all-Business Class carriers Eos and MAXjet succumb in recent months. After Silverjet suspended trading of its stock a week ago, and rumblings arose of investors balking at making good on loans, the airline’s demise seemed inevitable.

Despite bringing well-executed, innovative alternatives to the market, the business model’s reliance on an upscale clientele couldn’t survive a limping economy and soaring fuel bills. The all-Business Class carriers’ lack of effective frequent flyer programs also proved to be an insurmountable liability. This was particularly evident after American Airlines and its AAdvantage program invaded the Stansted home base of Maxjet and Eos, likely ensuring both carriers’ early exits. AA has since announced plans to withdraw from Stansted.

What will the loss of (low-fare) all-Business Class carriers have on the competition? Look for coverage in future issues of FCF.

British Airways and Virgin Atlantic have announced special fares for Silverjet ticketholders.