All-business class airline competition will increase after Eos Airlines announced daily US and Dubai services.

In what is bad news for Silverjet,Eos will commence services between London Stansted and New York Newark in May and between Stansted and Dubai in July.

Shares in Sliverjet, which flies to New York Newark and Dubai from London's Luton airport, were off 4p, or 18% to 18 pence.

Concerns about the all-business long-haul model were raised when Maxjet Airways filed for bankruptcy in December last year.

Eos started offering business and first class services between Stansted and New York JFK in October 2005. Eos currently flies four times daily on its busiest days and has expanded its fleet from four to seven aircraft.