Another one bites the dust: MAXjet shuts down

Even luxury it would seem is far from immune.veuve-bottles3.jpg Luxury goods from Gucci to LVMH to Lamborghini are supposed to be able to survive end even thrive in the typical economic downturn, but the fuel crisis, rising competition and problems of its own making having caught up with one of the new generation of luxury airlines that have captured a growing share of North Atlantic premium travel. MAXjet, which offered all business-class flights between London Stansted and the States, shut down and went into bankruptcy a few weeks after it suspended its shares on a London exchange. MAXjet, which competed with all first-class Eos and Silverjet on the London route, began service in late 2005 with Boeing 767s outfitted with about 100 business-class reclining seats, but repeated mechanical problems with its fleet and the resulting cancellations hardly helped. MAXjet had a net loss of $49.5 mllion in the first six months of the year, as it was hit by higher maintenance and fuel prices. It lost of $79 million (net) in 2006, its first full year of operations, on revenues of $41.1 million.It chose Stansted because of the airport’s ease of connection to UK%2B2007%2B098.jpg London’s Canary Wharf financial district, and used New York JFK as its US base. It had tried operating from Washington Dulles, where its executive offices were, 107902220_0e2fef2224.jpgbut had limited success with that route; it had added Las Vegas and Los Angeles with slightly more success, but not enough to keep it in business. After American Airlines began JFK/Stansted service, its selling proposition – business class at an affordable fare – became shaky. The other players in the premium niche say they’re doing well and Eos, which has only 48 seats on its planes, says business is booming. Silverjet, which flies from Luton, will accommodate MAXjet flyers, if it has room. Eos is truly a premium offering, with full beds, while Silverjet also has a high class product. MAXjet by contrast was very much selling on price rather than luxury, and when American came into the Stansted market, it faced a mighty rival. This perhaps proves that in a downturn, it’s the discount champagne rather than the top of the line brands that suffers the most.

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2 Responses to Another one bites the dust: MAXjet shuts down

  1. Billig Flüge 28 December, 2007 at 11:38 am #

    I just say : what a pitty. I tried Maxjet twice and I was deeply satisfied and convinced of their appearance.
    Hope they stay flying anyway.
    Regards
    Ticketdiscount.de

  2. Christophe 1 January, 2008 at 2:47 pm #

    One of the flaw of the new all business airlines is that they all use wrong aircraft types.
    Fitting a B757 with 48 business seats as EOS does is certainly not optimal when Privatair/SWISS have 56 in a B737.
    Flying a big old 767 with 100 premium seats is something crazy: how can you fill all these seats when not even BA, one of the most business oriented airline, offers such a configuration?

    These airlines selected 757 and 767 only because the 737 and 319 where a bit more expensive and not probably not readily available. At the end of the day the rental costs are only a tiny part of the total costs.

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