Silverjet, the beleaguered business-only airline, said yesterday it was in takeover talks that could lead to an offer for the airline, which is less than two years old.

Shares in Silverjet soared 43 per cent to 21.75p, a two-month high, after the company said it was in discussions. Speculation as to the identity of the bidder centred on easyJet, but people familiar with the low-cost airline, also based at Luton, were sceptical that it was behind any approach.

“This is a high-cost long-haul airline. Why would a low-cost short-haul airline be interested?” an aviation analyst said.

Silverjet, which flies from Luton to New York and Dubai, has been linked with easyJet since the business-class-only airline appointed Amir Eilon, a former board member of easyJet and a close friend of easyJet’s founder Stelios Haji-Ioannou, as a non executive.

However, aviation experts pointed out that Mr Eilon is a corporate finance expert and that this appointment was merely the first sign that Silverjet was up for sale.

The aviation community suspects that a private equity or financial buyer might be behind any approach for Silverjet. It could then delist the shares and concentrate on improving the airline’s performance hidden from the scrutiny of the public markets.

The loss-making Silverjet became vulnerable after it missed its target to break even last month. Its planes have been flying only slightly more than half full and it has had to deal with a soaring fuel price as well as the credit crunch hitting business travel demand.

Proposed changes to air passenger duty by Alistair Darling will also cost the airline dearly. The duty, which is currently levied at £80 per business class passenger, is likely to be changed to favour more environmentally friendly airlines, which carry full aircraft. Planned changes could also favour younger, less polluting aircraft, unlike the three 25-year-old aircraft that Silverjet operates.

The business-class niche has been fought over ferociously in recent months, after three new business-class-only airlines – MAXJet, Eos and Silverjet – launched in 2006. MAXJet went into administration over Christmas. British Airways said in February that it would launch a business-class only service from London City Airport in 2010 but recent figures from the airline showed a 5 per cent dip in March.

Meanwhile, Brent crude prices hit a new record high on Wednesday while Oasis, the budget Hong Kong airline, collapsed after just 18 months in operation blaming the high price of fuel. There are also fears that Zoom, a low-cost, long-haul airline, could be straining under fuel costs.

Mike Stoddart, of Daniel Stewart, said talks between Silverjet and investors were vital. "The company does need fresh equity. Without fresh equity it hasn’t got a future,” he told Reuters.“We are not a fan of the business model and we think that without major changes the company will run out of equity funds soon.”

His fears appeared to be confirmed after the Reuben brothers, who lent the carrier £10 million before Christmas, declined to convert their loan into shares earlier this year. Until yesterday’s news of a bid approach, the shares have slumped from 200p a year ago to 12.5p last week.

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