Things at Maxjet sound worse than I realized.
http://www.ft.com/cms/s/0/bfefe734-b18b ... ck_check=1
Hope they can make their Buisness plan work.
LGA777
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Things at Maxjet sound worse than I realized.
http://www.ft.com/cms/s/0/bfefe734-b18b ... ck_check=1
Hope they can make their Buisness plan work.
LGA777
Silverjet just reported a booking surge as a good deal of Maxjet customers fear the carrier will shutter. To bad really but you're flying a 767 across the pond and barely filling it while charging what was surely a very low price in compassion to the majors. Not a good combo for success.
They're toast.
Correction: they're toasted.
MaxJet goes tango-uniform:
First, Big Sky. Now MaxJet. Who's next for 2008? Xtra? Skybus? Virgin America? Champion? I guess only time will tell.Quote:
IMPORTANT UPDATE FROM MAXJET
Information below regarding those who have booked travel
Dear Friends of MAXjet:
It is with deep regret that I must inform you that MAXjet filed Chapter 11 bankruptcy on 24 December 2007. With today’s fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure. Our top priority is to assist our customers, particularly those who already have begun their travel with us, in securing alternative flight accommodations.
MAXjet has contracted with Eos Airlines for seats on Eos’ scheduled all-Premium service to accommodate passengers awaiting a return flight between New York and London. Passengers needing return travel between London, Los Angeles and Las Vegas will be contacted regarding their flight re-accommodations. Any customers who choose to make flight accommodations directly should seek a refund from their point of purchase (credit card or travel agency) for the unused leg of their journey.
We have also secured hotel rooms in London, New York, Las Vegas and Los Angeles through early January 2008 which we will provide to affected passengers whose travel plans have been disrupted.
On behalf of the entire MAXjet family, we extend our apologies to you for the inconvenience. We are extremely saddened to discontinue a service that we so passionately believe in, and we thank our loyal flyers who helped build MAXjet since our start in 2005.
Sincerely,
William D. Stockbridge
President and CEO
Before I go on, I don't know why you'd list Virgin America, a so far very succesful operation. But ok.
Very sad to see MaxJet go. I guess that's it, huh? No more nothing. :(
That's two bad, but expected. Champion will go under if they don't secure those charter contracts they need, as for the rest....I'd place my bets that Virgin American will stick around, they have a nice source of capital to tap into and unless Branson truly feels they can't make a go of it in the U.S they'll keep growing. I still think they'll buy B6 in a year or two. Truly sad for the people at MaxJet on Christmas Eve to lose your job, my heart goes out to them.
I know someone that literally just joined their team a couple weeks ago.
What a horrible way for their employees to wake up on Christmas Eve. I really feel for them.
Olympic is also looking at going under in 2008.
Talk about an awful Christmas card!
http://skyliner-aviation.de/photos/01christmas2007.jpg
http://skyliner-aviation.de/photos/01christmas2007.jpg
Virgin America a very successful operation? They lost $35 million loss in their first quarter of operation. Granted, at least they have a brand to back them.
VX is backed by an enormous brand and more importantly some extremely deep pockets who know they are going to lose a lot of money in the early going. They are trying to build market share with super low fares and doing things like padding their schedule to make their on-time record look good. I think it's safe to say VX is prepared to go several quarters in the red before they start worrying.
MaxJet was a poorly funded experiment in an unproven niche of the market. It didn't work for them, and chances are pretty good that most of the others members of that niche (Eos, L'Avion, SilverJet) will meet the same fate sometime soon enough.
Quote:
Originally Posted by ChrisW
Hey how many BILLIONS did Delta lose and they are still flying??? hehe <evil grin> :twisted:
VX's costs are all related to startup costs as they try to build a customer base and a network that will afford them repeat business. Although I don't know why they started transcon routes as their first choice in routes. Most of the LLC's dropped their transcon routes since they cost so much to operate and don't allow for great utilization of aircraft. I wonder how VX will do westbound this winter to LAX and SFO. B6 is already making tech stops from what I hear. The A320 really isn't a great choice for transcon when you compare it to the 737-700.
As said, I don't consider Virgin America's loss a true "loss" for the reasons stated.
Here's the NYCA MAXjet article: http://nycaviation.com/topstories#maxjet122407
I didn't see any of their planes on the ground at JFK today. Anyone notice any parked at other US airports?
I had no idea when I started this thread yesterday it would be over so quickly. It really saddens me to see such a unique niche carrier gone, and I feel tremedously sad for their employees. Although I had a lot of respect for their Chairman and President, Bill Stockbridge who I have met several times and is a friend of a good friend, I can't imagine things where so bad they could not have hung in to later in the week so passengers and employees are not in Hotel rooms on the wrong side of the pond on Christmas Eve or day when they where expecting to be with loved ones. Airline failures have and will continue to strand innocent passengers and employees but seldom has an airline ever been so cruel as to pick Christmas Eve to do it.
To add my speculation about future failures although it might be much later in the year or even next my money is on Skybus. Their business plan does not seem to be working, and I have a good friend in our hobby who works for another carrier in CMH and closely follows them. He sends me and others a several times a month e-mail about their operational blunders and they take the cake for stupid operational moves, many based on extreme cheapness. I will share the latest big one that will shock those of you in the industry or familair with aviation winter ops. Their was a recent deicing meeting in CMH between the airlines, the airport, and the vendor providing deicing to most carriers. A key Skybus official asked in front of the whole group if Skybus could just deice their 319's with "warm water" as deicing fluid is to expensive. The room was in shock as this bozo was serious. I understand the FAA was not amused and are stepping up their monitoring of their ops.
Regards
LGA777
Apparently 1 is parked at LAX, 1 is parked at LAS, and 1 is at JFK. That leaves 2 767-200s unaccounted for.Quote:
Originally Posted by Phil D.
All of Maxjet's planes will be returned to the leasing company.Quote:
Originally Posted by Phil D.
Wow, I read about this on A.net today. Very sad. It is even worse that it had to be on Christmas Eve.
Any reason why they discontinued operations under Ch. 11 not Ch. 7?
It will move to Chap 7 as MaxJet moves through the first stages of their Chapter 11 filing. By filing Chapter 11 on their own they bought themselves time to spin down operations rather then having the bank basically come in and take over. Since MaxJet is a private company we won't know how much money they had on hand at the time they filed. Chances are they couldn't secure an investor and only had enough cash for a few more weeks of operation. This way they can ensure w/e staff and accommodation needs to be taken care of will.Quote:
Originally Posted by nwafan20
If it werent so scary . It might be funny. Some people just shouldnt be in the business of transporting people with that kind of mentality.Quote:
Originally Posted by LGA777
"stepping over dollars to pick up dimes"
As for MaxJet, there were reports that some of their passengers heard about the airline ceasing operations as they were boarding flights yesterday. I can't even begin to imagine how hard it must have been for the pilot to come on the aircraft's PA and inform the passengers - assuming those reports are true.
The latest rumors are that EOS is looking to take on Maxjet's LAX and LAS routes to London.... Also a few top dogs from Maxjet have joined EOS.
EOS is picking up the same top dogs who put MAXjet under..wow great move...Quote:
Originally Posted by NYCMedic