b777a340fan
Posts: 652
Joined: Thu Oct 27, 2005 12:42 am

MaxJet - Bust Or Not?

Mon Mar 13, 2006 1:48 am

I know there was a topic started on LCC and long-haul flights, but it didn't really address whether people thought MaxJet would survive. I saw an ad for MaxJet and thought to myself if it was another FlyI disaster waiting to happen or something that may actually work. What do you think? I personally think that it could work, given that seats are filled (like any other airlines of course), but is there really such a high demand for business travelers? For leisure travelers, I don't think they're willing to pay $1000 from IAD-London when other carriers like BA, Virgin, UAL are all present. Plus, I assume most business travelers that fly business are very pressed for time, LHR is probably the most convenient airport to land in, not Sanstead. What are your thoughts?
 
roseflyer
Posts: 9606
Joined: Fri Feb 13, 2004 9:34 am

RE: MaxJet - Bust Or Not?

Mon Mar 13, 2006 2:15 am

Quoting B777a340fan (Thread starter):
I personally think that it could work, given that seats are filled (like any other airlines of course), but is there really such a high demand for business travelers? For leisure travelers, I don't think they're willing to pay $1000 from IAD-London when other carriers like BA, Virgin, UAL are all present. Plus, I assume most business travelers that fly business are very pressed for time,

I think Maxjet has a lot of potential. But it isn't necessarily from big business and big business travelers. Large corporations have policies and discounts where they put people in business class.

Where Maxjet could work out very well is in the well to do leisure travelers. Also for people from small businesses or their own businesses that don't have contracts for travel. These are the types that would really benefit from the low fare business class service offered by Maxjet. This type of one off travel to London might be able to work well for Maxjet. Many people don't want to fly economy and can afford to spend a little more, but can't afford the $5,000 or more that BA charges for Club World. The alternatives are premium economy, or a carrier like Maxjet. Maxjet is trying to create a niche and there definitely is potential there. With business class being expensive, there are many people and businesses that can't afford that much, but still want a certain level of quality.

Quoting B777a340fan (Thread starter):
LHR is probably the most convenient airport to land in, not Sanstead. What are your thoughts?

While LHR is more convenient, for someone in New York it isn't that big of a difference. The business traveler or well to do leisure traveler will likely have a car organized, or can take the train which really doesn't take much longer. Yes Heathrow is good and useful, but a significant number of Americans would not mind flying to Stansted in order to get a reasonably priced ticket. Most Americans have no stigma about Stansted being a low cost and low quality airport. Many people likely don't even know the relationship of Heathrow, Stansted and Gatwick to where they want to go.

While I think Heathrow would work out the best, it can't happen due to regulations. Stansted can serve the city. Also there are business travelers and some wealthy people in London that are actually closer to Stansted or find it easier to get to. Heathrow is hardly user friendly. People here on A.net seem to think that Heathrow is the crown jewel of airports to fly to, but in reality there is more to it than that. London is a huge city, and while there are concentrations of businesses and wealthy people, there still are people that can afford and want to fly to New York or Washington DC from Stansted (or Gatwick).

I don't know if Maxjet will succeed, but it is working to create a niche and it might be successful. You never know until it has been tried. Who ever thought a tiny little airline flying within Texas would become a national trendsetter and become the airline that all airlines want to mimic?
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luvflng
Posts: 143
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RE: MaxJet - Bust Or Not?

Mon Mar 13, 2006 8:36 am

One of the things that works against MaxJet is lack of network or a partner that can serve connecting passengers to other places. Right now all travellers on MaxJet are local to NY and London. There is a large void in fulfilling demand that most likely exists in other large urban areas in the US.


I give them thumbs down.
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WJ
Posts: 299
Joined: Mon Feb 27, 2006 6:14 am

RE: MaxJet - Bust Or Not?

Mon Mar 13, 2006 12:31 pm

While selling $1000 round trips will undoubtedly fill up some seats, they will need a much greater than 100% capacity just to break even, which of course is not good for business. In order to make money they will have to dramaticaly raise prices, in which case all the rest of the legacies on their routes that have a superior product, better flexibility and reliability and so on, will get back anyone they have lost to maxjet. Still, I would not call maxjet a bust because even of they shut down tomorrow, they have certainly brought attention to this market and there will be others that will follow, perhaps with a better business plan.
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WesternA318
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RE: MaxJet - Bust Or Not?

Mon Mar 13, 2006 12:41 pm

Quoting B777a340fan (Thread starter):
For leisure travelers, I don't think they're willing to pay $1000 from IAD-London when other carriers like BA, Virgin, UAL are all present.

Maxjet isn't targeting the vacationing discount leisure travelers in the first place.

Quoting B777a340fan (Thread starter):
Plus, I assume most business travelers that fly business are very pressed for time, LHR is probably the most convenient airport to land in, not Sanstead. What are your thoughts?

If it wasn't for the Bermuda II agreement, LHR would still only be accessed by Pan Am and BA. Stansted and Gatwick serve London more efficiently and with more choice than Heathrow does, IMHO.

Quoting RoseFlyer (Reply 1):
Also for people from small businesses or their own businesses that don't have contracts for travel. These are the types that would really benefit from the low fare business class service offered by Maxjet. This type of one off travel to London might be able to work well for Maxjet. Many people don't want to fly economy and can afford to spend a little more, but can't afford the $5,000 or more that BA charges for Club World.

Who would want to pay that much out their own pocket anyways? Well, I do, but only if it is on CO and not BA.

Quoting RoseFlyer (Reply 1):
Yes Heathrow is good and useful, but a significant number of Americans would not mind flying to Stansted in order to get a reasonably priced ticket. Most Americans have no stigma about Stansted being a low cost and low quality airport. Many people likely don't even know the relationship of Heathrow, Stansted and Gatwick to where they want to go.

It all depends on the circumstances.

Quoting Luvflng (Reply 2):
One of the things that works against MaxJet is lack of network or a partner that can serve connecting passengers to other places.

jetBlue has no partner whatsoever and is raking in money (until recently thank god) without that particular advantage.

Quoting Luvflng (Reply 2):
Right now all travellers on MaxJet are local to NY and London.

This is their target traveller, and I'm wondering how their IAD-Stansted will turn out as well.
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jacobin777
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RE: MaxJet - Bust Or Not?

Mon Mar 13, 2006 12:47 pm

Quoting Luvflng (Reply 2):
One of the things that works against MaxJet is lack of network or a partner that can serve connecting passengers to other places. Right now all travellers on MaxJet are local to NY and London. There is a large void in fulfilling demand that most likely exists in other large urban areas in the US.

they do have a link to easyjet.com on their homepage, maybe they will work more with them in the future..
"Up the Irons!"
 
kevindca
Posts: 77
Joined: Fri Aug 18, 2000 1:47 pm

RE: MaxJet - Bust Or Not?

Mon Mar 13, 2006 3:08 pm

I love little niche airlines like MaxJet. They make aviation fun again, and they give us something to spot and talk about besides the usual dreary AA-UA-US-CO-DL, etc. monotony. I have serious doubts about their future simply because "premium" airlines never seem to stay around too long (Muse Air, MGM Grand, Legend - but then again, those were all US domestics), but I wish them the best of luck, and I mean it. I just saw the MaxJet 767 at IAD the other day, and she looks great. Almost as exciting as when I used to see the USAfrica MD-11 taxi for take off back in the mid-90's!