Silverjet, the last business class-only airline flying from Britain, has secured a $25 million (£12.6 million) lifeline from a Middle Eastern investor to keep it operating for at least the rest of this year.

The money is thought to have come from an Abu Dhabi investment fund and includes the promise of up to $75 million more to develop the airline's operations in the future, particularly in the Middle East and Asia.

Silverjet's new partner is providing the initial investment as a debt and equity package and will receive a 28 per cent stake in the airline.

Silverjet's share price has collapsed by 90 per cent since it floated 18 months ago and last year it was losing about £1 million a month. The carrier offers 100 business-class seats on its flights, which depart from a private terminal at Luton airport to New York and Dubai.

Eos, which offered a similar business-only service from Stansted airport, went into bankruptcy protection last weekend. MaxJet, which also flew from Stansted, went bust last Christmas.

The business-only carriers have struggled with rising fuel costs and a difficulty raising cash in the credit crunch environment — Silverjet was widely expected to follow Eos and MaxJet into bankruptcy.

Its survival will owe much to the praise that passengers have heaped on the airline for its service. However, like other airlines it will still face difficulties this year coping with oil prices at $120 a barrel. Silverjet has already missed its target of breaking even by March.

Under the terms of the rescue deal announced today, Silverjet will issue new equity worth £4.1 million at 17p a share. Shares in the company fell 2.5 per cent to 14.5p in early trading.

Lawrence Hunt, chief executive at Silverjet, said: "This investment places Silverjet in a strong position to further develop our brand and proposition. It is particularly encouraging to have secured this agreement in a challenging environment for all airlines. The support of this investor demonstrates the strength of Silverjet’s exclusively business-class model."

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