MAXJet Folds, Will Others Follow?
Just a couple of years ago it seemed like the sky was the limit when it came to small business-class-only airlines. We saw a bunch of small airlines such as Eos, Silverjet and MAXJet announce New York to London hops designed to appeal to frequent travelers. But now that MAXJet has filed for bankruptcy, some as wondering what the future holds for their direct competitors. 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]
Reader Comments (Page 1 of 1)
R. Grundy Dec 30th 2007 6:33AM
It's an interesting question which of the business class only airlines will survive, but I don't think it's just about pricing. Airlines like Eos and Silverjet offers something you can't get on traditional airlines no matter what class you fly, namely a pleasant experience on the ground. Their operations are smaller, they fly from smaller airports and they can offer a much more upscale experience with faster security and check-in. Silverjet lets passengers check in up to 30 minutes before take-off for example in in the luxury of a private lounge – rather than the chaos of an airport hall. On the London end at least this has been a huge improvement on what traditional airlines are offering.
John Beddall Jan 7th 2008 2:28PM
I am indeed sorry that MAXJet has had to close down. I enjoyed trips with them from Stansted-JFK and thought the luxury and service, both onboard and in
lounges was superb.
I hope that the staff, whom I found to be friendly, warm and welcoming, are looked after and will secure appropriate alternative positions.
For a couple of years, MAXJet provided a very worthwhile alternative to the larger airlines and its demise demonstrates just how competitive this market is.