MAXjet's original 'highly connected' business plan revealed

Hindsight, as they say, is 20/20 but if former MAXjet Airways VP-international development John Wensveen could go back and reinvent the now-defunct, all premium carrier he'd buy modern, fuel-efficient aircraft and harness in-flight entertainment and connectivity (IFE&C) to its fullest extent. The latter, he reveals to Runway Girl, was actually part of MAXjet's original pitch to investors.

A member of MAXjet's founding team Wensveen says that when he and his colleagues were setting up MAXjet they wanted the transatlantic Boeing 767-200 operator "to be at the forefront of IFE&C" and use this technology to generate as much ancillary revenue as possible.

The original plan was to charge interested passengers for highly-connected portable in-flight entertainment (IFE) devices in advance of their trip. The airline would also take a deposit from the passengers' credit card and this would enable them to do everything from access movies and music to shop in real time for meals, duty free or trip 'add-ons' such as access to tourist attractions or rental cars.

The airline intended to have "interactive marketing agreements" with the rental car companies, restaurants, etc, and get a slice of each transaction made in-flight. "As a result, it would have been a win-win for everybody - the passenger can get a discounted rate, the airline would get revenue and the partner would get revenue," says Wensveen.

So MAXjet originally intended to provide a managed Internet experience in a walled environment via portable IFE players? Correct, says Wensveen. But the carrier also wanted to offer in-flight Internet and telephone capability, he says.

"We were selling sleep to the business travellers, and we wanted to create a menu. And it was all done in advance so if you wanted something, the airline already had your details, and could charge the credit card."

A portion of MAXjet's original plan did take flight, if only briefly. The carrier offered
digEcor's portable video devices to passengers, but didn't charge for the pleasure. The devices were not highly connected because MAXjet didn't have the money to invest in retrofitting its aircraft with an in-flight connectivity system. Likewise, in-flight Internet and telephone capabilities couldn't be exploited either.

"I can't remember the exact estimate, but at the time if we really wanted to go all out to do it the way we wanted to do it, you're looking at a million dollars an airplane. So basically you're installing high-speed satellite systems on your plane that have unlimited capabilities."

Securing financing for high-end connectivity systems also proved really difficult. "Those financing agreements were not there for a start-up carrier because we weren't well established. As a start-up, the risk is too heavy."

The business model ultimately implemented by MAXjet was not the exact same business model pitched to get the initial capital.

In December 2007 the carrier entered into Chapter 11 bankruptcy protection after failing to finalize a new round of financing. It blamed high fuel prices and "the resulting impact on the credit climate". The carrier began auctioning assets in February 2008.

Could an IFE&C-supported ancillary revenue strategy have kept the carrier from collapsing? Lord only knows, but if Wensveen was starting from scratch today, he'd "utilize modern, fuel-efficient aircraft that already have [in-flight connectivity] technology installed on the airplanes".