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MAXjet Post 6 Month Loss  
User currently offlineLaxintl From United States of America, joined May 2000, 25329 posts, RR: 49
Posted (6 years 11 months 3 weeks 6 days 23 hours ago) and read 8768 times:

No surprise however the red ink continues to flow, with amazingly negative operating margins.

Carrier this week finally reported its 1st half 2007 financials.

Highlights:
Revenues: $27.3mil
Expenses: $59.2mil
Operating Loss: ($31.9mil)
Passengers: 31,186
Avg LF: 67.1%
RASM: 12.9
Ontime Performance: 80.5%

Full filing:
http://www.digitallook.com/news/rns/...2-231550/MAXJ-Interim_Results.html


From the desert to the sea, to all of Southern California
54 replies: All unread, showing first 25:
 
User currently offlineJetBlueGuy2006 From United States of America, joined Jan 2006, 1660 posts, RR: 1
Reply 1, posted (6 years 11 months 3 weeks 6 days 23 hours ago) and read 8733 times:

How does that compare to the likes of Eos, Silverjet and L'Avion? If someone has the stats, that would be great.


Home Airport: Capital Region International Airport (KLAN)
User currently offlineMcSteve From Netherlands, joined Jul 2005, 69 posts, RR: 0
Reply 2, posted (6 years 11 months 3 weeks 6 days 23 hours ago) and read 8720 times:

I'm no expert but with this kind of result and growing competion shouldn't they just call it a game and stop. They are losing about a 1000 dollars per passenger with these figures amazing!


life is too short to drink bad wine
User currently offlineCaptainsimon From United Kingdom, joined Nov 2006, 127 posts, RR: 0
Reply 3, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8644 times:

Quoting McSteve (Reply 2):
I'm no expert but with this kind of result and growing competion shouldn't they just call it a game and stop. They are losing about a 1000 dollars per passenger with these figures amazing!

Maybe, maybe not! the board do need some serious talk and regenerate their business plan but there is nothing to say that things need to be turned around.
When new airline start business it takes a while to get straight.
Don't forget that when FR started they were losing millions and came close to shutting shop now they are the most profitable airline in Europe.


User currently offlineRJNUT From United States of America, joined Dec 1999, 1222 posts, RR: 0
Reply 4, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8644 times:

the most startling statistic of all is the OT percentage rate..That is abysmal!!!!

WOW,,,and they are trying to put a positive spin on all this??!!


User currently offlineLaxintl From United States of America, joined May 2000, 25329 posts, RR: 49
Reply 5, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8637 times:

Well EOS and L'Avion are private and dont have to report earnings, however Silverjet for its latest earnings report also showed a loss.

Revenue:£12,8mil
Expenses:£30.9mil
Loss: (£18.2mil)



From the desert to the sea, to all of Southern California
User currently offlineManchesterMAN From United Kingdom, joined Sep 2003, 1226 posts, RR: 1
Reply 6, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8616 times:

I'm a little surprised they aren't doing slightly better as they have some very good fares, particularly from LAX and LAS. I suppose the main issue is that their product isn't really up to scratch (bmi's premium economy compares favourably to maxjet's business class) but then they do price it below competing carriers' business class.

I think they were a little slow getting their cargo operation up and running so they should see an improvement from this side for Q3 and Q4 which will help.



Flown: A300,A319,A320,A321,A330,A340.A380,717,727,737,747,757,767,777,DC9,DC10,MD11,MD80,F100,F50,ERJ,E190,CRJ,BAe146,Da
User currently offlineOsprey88 From United States of America, joined Jul 2007, 330 posts, RR: 1
Reply 7, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8604 times:

Silverjet isn't looking too good either....

They lost 1,742,000 pounds in the six months leading up to 30 September 2006.

[Edited 2007-09-23 23:03:13]


"Reading departure signs in some big airports reminds me of the places I've been"
User currently offlineLaxintl From United States of America, joined May 2000, 25329 posts, RR: 49
Reply 8, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8578 times:

Quoting Osprey88 (Reply 7):
six months leading up to 30 September 2007.

Its not even Sept 30th yet...  Yeah sure

Here was their last financial filing from Sept 17th - with the numbers I posted in earlier reply.
http://www.iii.co.uk/investment/detail%3Fcode%3Dcotn:SIL.L&it%3Dle



From the desert to the sea, to all of Southern California
User currently offlineWillyj From United States of America, joined Oct 2005, 468 posts, RR: 0
Reply 9, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8543 times:

In my opinion Maxjet needs to update their seats so they are more competitive with Silverjet. Their prices are similar, but their hard product is a step below silverjet's.

User currently offlineATLFlyer323 From United States of America, joined Jan 2005, 615 posts, RR: 0
Reply 10, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8532 times:

Quoting Captainsimon (Reply 3):
Don't forget that when FR started they were losing millions and came close to shutting shop

darnit.  Silly

~Brandon



Everyday, the fluffy temptation of wheat!
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 11, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8522 times:

Those are astounding figures. losing more money than you collect in revenue is unsustainable and I find it hard to believe they can become viable fast enough. AA is putting the squeeze on the STN operators and there will undoubtedly be more network carrier coming against these LFCs who want very badly to cut off these notions of transatlantic LFCs before they get started.

User currently offlineCitrusCritter From Pitcairn Islands, joined May 2007, 1099 posts, RR: 3
Reply 12, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8510 times:

Quoting ManchesterMAN (Reply 6):
(bmi's premium economy compares favourably to maxjet's business class

I could not agree less. MaxJet is 2x2 seating -- no middle seats. BMI's PE has 2x4x2 seating, as does BA. VS may or may not have 2x2 depending on the plane and configuration. Regardless of service, meals, etc. etc., not having a middle seat is superior in my mind.



TLH
User currently offlineOsprey88 From United States of America, joined Jul 2007, 330 posts, RR: 1
Reply 13, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8460 times:

Quoting Laxintl (Reply 8):
Its not even Sept 30th yet..

My bad, make that 2006, lol.



"Reading departure signs in some big airports reminds me of the places I've been"
User currently offlineUPPERDECKFAN From Spain, joined Jun 2007, 992 posts, RR: 1
Reply 14, posted (6 years 11 months 3 weeks 6 days 22 hours ago) and read 8452 times:

Quoting Laxintl (Reply 5):
Well EOS and L'Avion are private and dont have to report earnings

None of this airlines are state-owned, so what do you mean by "private"?

Quoting CitrusCritter (Reply 12):
I could not agree less. MaxJet is 2x2 seating -- no middle seats. BMI's PE has 2x4x2 seating, as does BA. VS may or may not have 2x2 depending on the plane and configuration

Correct me if I'm wrong, but I think you're comparing a B757 against B767/777



744,742,741,772,773,762,732,735,738,752,727,717,DC10,DC9,M82,M87,319,320,321,343,346,L1011,CRJ2,CRJ9,E190,ATR42,DSH8,
User currently offlineDiesel1 From UK - Wales, joined Mar 2001, 1638 posts, RR: 11
Reply 15, posted (6 years 11 months 3 weeks 6 days 21 hours ago) and read 8419 times:

Quoting Osprey88 (Reply 7):
Silverjet isn't looking too good either....

They lost 1,742,000 pounds in the six months leading up to 30 September 2006.

They hadn't launched services at this point, so the loss is irrelevant.

Quoting UPPERDECKFAN (Reply 14):
None of this airlines are state-owned, so what do you mean by "private"?

Without shareholders



I don't like signatures...
User currently offlineLaxintl From United States of America, joined May 2000, 25329 posts, RR: 49
Reply 16, posted (6 years 11 months 3 weeks 6 days 21 hours ago) and read 8413 times:

Quoting UPPERDECKFAN (Reply 14):
so what do you mean by "private"?

Private = Not publicly owned companies that trade on the stock market.



From the desert to the sea, to all of Southern California
User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 17, posted (6 years 11 months 3 weeks 6 days 21 hours ago) and read 8373 times:

Quoting WorldTraveler (Reply 11):
Those are astounding figures. losing more money than you collect in revenue is unsustainable


..interesting you would make that comment considering DL was just in that seat no more than a few months ago....

[Edited 2007-09-23 23:27:16]


"Up the Irons!"
User currently offlineEXAAUADL From , joined Dec 1969, posts, RR:
Reply 18, posted (6 years 11 months 3 weeks 6 days 21 hours ago) and read 8293 times:

Quoting Jacobin777 (Reply 17):
..interesting you would make that comment considering DL was just in that seat no more than a few months ago....

Delta never had a negative 100% profit margin


User currently offlineJacobin777 From United States of America, joined Sep 2004, 14968 posts, RR: 59
Reply 19, posted (6 years 11 months 3 weeks 6 days 20 hours ago) and read 8211 times:

Quoting EXAAUADL (Reply 18):
Quoting Jacobin777 (Reply 17):
..interesting you would make that comment considering DL was just in that seat no more than a few months ago....

Delta never had a negative 100% profit margin

.....but they were still hemorrhaging massive amounts of money at the end of the day....anyway, reading the numbers from the link provided, revenue is improving quite nicely and a lot of the expense was due to fleet acquisition....we'll have a better "feel" as to how MaxJet is doing 10-12 months from now (provided they aren't still in "expansion mode" and adding planes to the fleet)...



"Up the Irons!"
User currently offlineCitrusCritter From Pitcairn Islands, joined May 2007, 1099 posts, RR: 3
Reply 20, posted (6 years 11 months 3 weeks 6 days 20 hours ago) and read 8206 times:

Quoting UPPERDECKFAN (Reply 14):
Correct me if I'm wrong, but I think you're comparing a B757 against B767/777

No, MaxJet flies 762s. It's Eos that uses 757s. My comparison for BD was a A330-200, for BA 747 and 777, and for VS both the A346 and B747, all configurations.



TLH
User currently offlineManchesterMAN From United Kingdom, joined Sep 2003, 1226 posts, RR: 1
Reply 21, posted (6 years 11 months 3 weeks 6 days 20 hours ago) and read 8206 times:

Quoting CitrusCritter (Reply 12):
I could not agree less. MaxJet is 2x2 seating -- no middle seats. BMI's PE has 2x4x2 seating, as does BA. VS may or may not have 2x2 depending on the plane and configuration. Regardless of service, meals, etc. etc., not having a middle seat is superior in my mind.

Incorrect. bmi's PE is 2-2-2 on the A330 with a 49" pitch and 21" seat width (the seats they use are actually the old business class seats). The first reconfigured aircraft is in service between MAN and ORD now and the other 2 aircraft will be refitted by the end of the month. FYI the new business class features a nice 80" pitch and 26" width.



Flown: A300,A319,A320,A321,A330,A340.A380,717,727,737,747,757,767,777,DC9,DC10,MD11,MD80,F100,F50,ERJ,E190,CRJ,BAe146,Da
User currently offlineCitrusCritter From Pitcairn Islands, joined May 2007, 1099 posts, RR: 3
Reply 22, posted (6 years 11 months 3 weeks 6 days 20 hours ago) and read 8197 times:

Quoting ManchesterMAN (Reply 21):

Sounds like a nice improvement. How's their pricing versus MaxJet? And what does premium economy get you, if anything, in terms of lounge access etc. on BD?



TLH
User currently offlineManchesterMAN From United Kingdom, joined Sep 2003, 1226 posts, RR: 1
Reply 23, posted (6 years 11 months 3 weeks 6 days 20 hours ago) and read 8157 times:

Quoting CitrusCritter (Reply 22):
Sounds like a nice improvement. How's their pricing versus MaxJet? And what does premium economy get you, if anything, in terms of lounge access etc. on BD?

The seat may be business class but the service is economy. They offer pre-flight drinks, free booze, seperate check-in desks and a few other small extras but that is about it. I don't think long haul PE gets you lounge access though unless you are bmi silver or gold or Star gold. As for pricing there doesn't seem to be much difference over the old seats at the moment but I'm sure as word gets out and they see increasing demand then prices will rise. They have had some very good PE sales between MAN and ORD/BGI/ANU recently with return flights in the £500 range but these aren't available any more.



Flown: A300,A319,A320,A321,A330,A340.A380,717,727,737,747,757,767,777,DC9,DC10,MD11,MD80,F100,F50,ERJ,E190,CRJ,BAe146,Da
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 24, posted (6 years 11 months 3 weeks 6 days 19 hours ago) and read 8124 times:

Quoting Jacobin777 (Reply 17):
..interesting you would make that comment considering DL was just in that seat no more than a few months ago....



Quoting EXAAUADL (Reply 18):
Delta never had a negative 100% profit margin



Quoting Jacobin777 (Reply 19):
anyway,

Jacob also looks for a chance to throw a punch at DL, even if it has no basis in fact. DL's worse net loss was no more than -20% - and on an operating basis, DL was profitable for many of the years it reported huge net losses because of accounting provisions. Young companies can't take those kind of charges because they don't have that much on their balance sheets to take charges against.

The losses shown above are bleeding losses that can only be described as major cash burning exercises.


25 Laxintl : Keep in mind this 6 month loss is in addition to $79.2 mil loss in 2006 and $29.9mil in losses for 2005 that MAXjet posted. While the carrier continue
26 Post contains images Jacobin777 : I'm glad you noticed.. ..but you know that DL was hemorrhaging money for a few years post 9-11.... ..you can't say it was accounting riff-raff.....re
27 RDUDDJI : So if they had a 100% LF, they'd need about $1270 per pax just to break even. With fuel costs rising, I don't see much of a future for them with those
28 LAX20531 : I saw this yesterday and read the entire release with great interest. It appears the problems still exist in IAD with many canceled and delayed flight
29 VictorKilo : The press release gives RASM figures, but if you calculate the CASM figures from the press release, it sure doesn't seem like MAXjet can make it as an
30 ThePRGuy : My Dad flew with MaxJet last month, and was very unimpressed. He's not a travel snob, but even he said bmi's longhaul premium cabins are way better, a
31 Orion737 : I dont like the look of their on time departure record!!! Especially for a premium carrier, it seems appalling, almost worse than a charter airline. I
32 Mutu : Well I dont suppose these numbers come as any surprise for a relatively young business operating a relatively novel business model. I am also pretty s
33 EXAAUADL : This kinda shows that they cant make money even with free fuel.
34 Miamiair : They are in the process of securing a 767-300 now. As for the last two airplanes that were added to the fleet, they came out of Alitalia looking like
35 Orion737 : I felt sure they must be having 'issues' with the dispatch reliability with their aircraft looking at their on time performance record. This hardly is
36 LAX20531 : I completely agree. Just took a look at their website flight status, as today is their "heavy day" where all a/c should be used to fly IAD, JFK, LAS,
37 Aerofan : Ah give them a break. perhaps things will turn around in the last quarter
38 N77014 : It's time for a bold advertising move... Challenge all TATL J-class customers to a satisfying flight or money refunded. If they choose to stay then of
39 Laxintl : EOS did something similar during its start up. Only problem for MAXjet is that its product is far from todays business class offerings of carriers li
40 WorldTraveler : at the expense of the investors. They will step up soon and say they won't be drained dry while MaxJet tries to figure out how to run an airline. I d
41 StarGoldLHR : I work with a lot of people in different companies across the city and canary wharf. The impression I get from most people is pretty interesting... th
42 Flighty : My goodness, they need way more than 13 cent RASM! They are aiming for 30 cent RASM and they're failing miserably to get it. Advertising would help a
43 Post contains images 747fan : MaxJet's seats are very similar to the business class seats that TWA had 10-15 years ago in Trans World One. I don't know what MAXjet's seats are lik
44 WorldTraveler : very true. business people do not voluntarily choose lower cost alternatives; they only do it when they are forced to do so. No one wants to be told
45 ThirteenRight : No they're not. MAXjet and Eos are similar in concept, but are much different in execution. MAXjet is meant to be affordable business class whereas E
46 Cloudboy : When did BMI put in wider premium economy seats? Can't think of many premium economy offerings - just Virgin and BA. And their prices are pretty much
47 StarGoldLHR : I disagree, I think they did their advertising work very well here in London, in the "City" and in "Canary Wharf" everyone Ive worked with has heard
48 Post contains images Jacobin777 : ...while frequency and possibly reliability might be a problem, EOS has a "true" 1st class in every sense of the word...and SilverJet's service isn't
49 Post contains images 787KQ : All seem like benefits except for LHR.
50 AF022 : Are they going to phase out their B762s? Was this the problem with the delays?
51 Post contains images N905TW : Interesting, since one of the aircraft - N260MY was formerly N650TW. Are these the seats you remember? Trans World One rolled out in Spring of 1995.
52 VV701 : Yes. And BA flies 763s. So why do you compare a MaxJet 762 with a BA 744? If you compare it with a BA 763 you will find that World Traveller Plus - B
53 N77014 : Tthe kind of product most of their target audience is already flying on the legacy carriers anyway, without losing lounge access and status.
54 LACA773 : I know it's probably a little early to ask, but how's MAX doing out of LAX since they started? LACA773
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