London  - Shares in newly-founded British business class airline Silverjet were suspended Friday after the group said that a vital cash injection from a Middle Eastern investor had failed to materialize.

Silverjet, which was founded in January, 2007, flies from London to New York and Dubai. It said money agreed under a deal worth 12.7 million pounds (25.4 million dollars) signed with a Middle Eastern investor had not come through.

Silverjet stressed that it was continuing to fly, but was now in critical talks to raise alternative funding "as a matter of urgency."

The company said it was also continuing discussions with the investor, Viceroy Holdings, an international luxury development fund based in the United Arab Emirates and in the US.

"Viceroy Holdings are still committed to investing in the airline, but they have not been able to access the funds required to give to Silverjet," said a spokesman for the airline.

Silverjet had asked Viceroy for around 2.5 million pounds as an initial instalment earlier this month.

The luxury airline has been hit by soaring fuel costs as the price of oil reaches unprecedented levels.

Analysts have predicted that smaller airlines were especially vulnerable and that some could go out of business if the oil price topped 130 US dollars a barrel. (dpa)