MAXJet Folds, Will Others Follow?
MAXJet had a small fleet of just five 767s. They cited high fuel prices and the "resulting impact on the credit climate for airlines" as reasons for the bankruptcy. On their website they say that they contracted with Eos Airlines for seats on Eos' scheduled all-Premium service to accommodate passengers needing a return flight between New York and London.
The Guardian's Danny Fortson writes that other smaller airlines may also be facing trouble when they try to compete with British Airways and Virgin Atlantic who are also going after the same market. Also an "open skies" agreement will open the route to other carriers as of next spring. Analysts are questioning whether or not the business class-only jet business is viable. Both Eos and SilverJet have issued announcements to state that they are just fine thank you very much. So far, they seem to still offer services that are superior to the big guys in terms of price and luxury but both of them have small fleets, Silverjet has three 767s and Eos has four 757s which could hurt them in the future.
[via A Luxury Travel Blog]