Trouble for MaxJet

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Maxjet share trading halted
By Kevin Done, Aerospace Correspondent
Friday Dec 7 2007 15:40

Trading in the shares of Maxjet Airways, one of the new breed of all-business class long-haul airlines, was suspended on Friday in London, as the US group struggled to put together a financial rescue package.

The airline, which started flying transatlantic services in November 2005 between London Stansted and New York JFK airports, raised net proceeds of £47.3m in an initial public offering in June, becoming the second all-business airline after UK rival Silverjet to list on London's alternative investment market.

It has faced mounting losses in the face of surging fuel prices and lower than expected fare yields. Higher maintenance costs for its ageing fleet of Boeing 767 aircraft have also depressed financial performance
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Maxjet and their ilk always seem like a good idea for an airline. Cater to business fliers with big seats, premium service. However, even businessmen don't want to pay premium fares and the glitterati don't want to rub elbows with the "little people."

Then, they always fail.
 
There's going to be a lot of angry early-retired Southernjet's pilots.
 
Velocipede said:
Maxjet and their ilk always seem like a good idea for an airline. Cater to business fliers with big seats, premium service. However, even businessmen don't want to pay premium fares and the glitterati don't want to rub elbows with the "little people."

Then, they always fail.
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One of local business radio guru's here in Sacramento (who fly's his own 182) has been saying for years that he would love an airline like this. It seemed like a good idea to me as well . . . just shows to go ya:confused:
 
I'm sorry these pilots will lose their jobs, but honestly I can't say I am sorry to see the company go. I hope the US legacies can pick up their flying, we don't need any LCC's doing international routes.
 
It was an LPC... Low "price" carrier. Flying over the ocean's expensive.

Heck, it's even a fistful of cash to get a SELCAL check in some places.
 
EOS seems to be doing pretty well. They just got a whole bunch of money from the desert to fly from England to Dubai.
 
bumblebee said:
One of local business radio guru's here in Sacramento (who fly's his own 182) has been saying for years that he would love an airline like this. It seemed like a good idea to me as well . . . just shows to go ya:confused:
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Yeh - but did the guru ever actual fly on MaxJet? Lots of people think things are good ideas, but when push comes to shove they don't actually buy the service. Lots of people say they want more legroom in coach - ask American how well that worked out.
 
CFIse said:
Yeh - but did the guru ever actual fly on MaxJet? Lots of people think things are good ideas, but when push comes to shove they don't actually buy the service. Lots of people say they want more legroom in coach - ask American how well that worked out.
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I know I would have piad more (not now though) but I didn't fly enough to make a difference anyway.
 
bumblebee said:
I know I would have piad more (not now though) but I didn't fly enough to make a difference anyway.
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No individual pays enough to make a difference anyway - and I wasn't blaming you personally for the demise of either MaxJet or "more room in coach". :-)

I'd be willing to bet good money, or at least a can if the world's finest Coca-Cola, that if you took a wide-ranging poll of people who say they're have travelled or will travel by airline in the past or nect 12 months if they'd be willing to pay, I don't know, $20 a seat extra for "more room in coach" you'd find an overwhelming response that says yes. But if you were actually dumb enough to believe them, you'd pretty quickly find that many (not all) people booked away from you because your tickets were "too expensive".

"The customer's always right" is not a proven fact. In another industry I lived through an event where intense customer focus was used to determine if a major technological step forward would be purchased by customers - they said no - yet a competitor just went ahead and built the new equipment anywhere, and those lieing slimy excuses for humans we called customers went and bought it anyway - essentially destroying the original company. Customers lie to you, they do it all the time.
 
This reminds me of a gentleman I sat next once while deadheading. He was a MaxJet newhire right after they started operations and this was his 6th airline. He was one of the unfortunate ones who have always gone to the wrong place at the wrong time it seemed. Either getting furloughed or the company simply going under. He was a nice guy too, so it is a bummer for him I guess. Off to airline number 7 or perhaps he should just open a hardware store or something.

One thing for sure, I hope to not be in his shoes one day.
 
Decisions, decisions. You never know if you made the right one until long after you retire.

That said, life is the journey, not the destination.

Don't worry, be happy;
 
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