LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:00 am

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
 
JetBlueGuy2006
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:06 am

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)
 
McSteve
Posts: 51
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:08 am

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
 
captainsimon
Posts: 90
Joined: Wed Nov 29, 2006 2:24 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:27 am

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.
 
RJNUT
Posts: 1182
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:27 am

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??!!
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:29 am

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
 
ManchesterMAN
Posts: 1042
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:32 am

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
 
Osprey88
Posts: 268
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:34 am

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"
 
LAXintl
Posts: 20183
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:38 am

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
 
willyj
Posts: 410
Joined: Mon Oct 03, 2005 3:04 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:49 am

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.
 
ATLFlyer323
Posts: 489
Joined: Sun Jan 16, 2005 2:01 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:52 am

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!
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:54 am

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.
 
CitrusCritter
Posts: 770
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 5:56 am

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.
 
Osprey88
Posts: 268
Joined: Sun Jul 08, 2007 8:13 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 6:04 am

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"
 
upperdeckfan
Posts: 511
Joined: Fri Jun 08, 2007 1:59 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 6:06 am

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,
 
diesel1
Posts: 1482
Joined: Sat Mar 10, 2001 9:11 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 6:15 am

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...
 
LAXintl
Posts: 20183
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RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 6:17 am

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
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 6:26 am

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!"
 
EXAAUADL
Posts: 1740
Joined: Tue Jun 13, 2006 3:48 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 6:58 am

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
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:34 am

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!"
 
CitrusCritter
Posts: 770
Joined: Wed May 30, 2007 10:36 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:36 am

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.
 
ManchesterMAN
Posts: 1042
Joined: Fri Sep 26, 2003 10:57 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:37 am

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
 
CitrusCritter
Posts: 770
Joined: Wed May 30, 2007 10:36 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:39 am

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?
 
ManchesterMAN
Posts: 1042
Joined: Fri Sep 26, 2003 10:57 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:53 am

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
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 8:15 am

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.
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 9:43 am

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 continues to put on a cheerful spin on things, its breakeven load factor would be 100% even with a near doubling of yields, something that is not happening while the carrier continues to offer its ~$700-800 fares.

To put further pressure on things, 2nd half fuel cost are projected to be 10% greater then the first half, while the carrier will receives zero added income for charter activity having withdrawn from such also.

While negative operating margins are nothing new to the airline business, continued operations where it cost $2 to provide a seat that only garners $1 in revenue cannot last forever. Its one thing to have a negative -5% or even -10% operating margins, but having a -117% margin is beyond bad.

p.s. - only other airline in recent years that I can remember with such poor margins was FLYi - Independence Air.

[Edited 2007-09-24 02:45:36]
From the desert to the sea, to all of Southern California
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 10:27 am

Quoting WorldTraveler (Reply 24):
Jacob also looks for a chance to throw a punch at DL,



I'm glad you noticed.. Wink ..but you know that DL was hemorrhaging money for a few years post 9-11....

Quoting WorldTraveler (Reply 24):
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.

..you can't say it was accounting riff-raff.....rewinding back to 2005, DL was seriously losing $$$ on a daily basis and things such as flying 1/3 filled B767's on domestic runs was just some of their large-scale aviation blunders...

Quoting WorldTraveler (Reply 24):
The losses shown above are bleeding losses that can only be described as major cash burning exercises.

...brand building.....while its obvious they can't continue this for too many periods, I wouldn't be surprised if their numbers start improving dramatically the next few quarters.

Quoting Laxintl (Reply 25):
p.s. - only other airline in recent years that I can remember with such poor margins was FLYi - Independence Air.

....I agree with your comments but again I think they will do a lot on their finances and expansion fronts....we'll see what happens..

..of note: I don't fly MaxJet so I have nothing personal to gain or lose...
"Up the Irons!"
 
RDUDDJI
Posts: 1709
Joined: Fri Jun 04, 2004 4:42 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 10:39 am

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 numbers...

Quoting RJNUT (Reply 4):
the most startling statistic of all is the OT percentage rate..That is abysmal!!!!

80.5% is actually very good compared to other carriers.
Sometimes we don't realize the good times when we're in them
 
lax20531
Posts: 12
Joined: Sat Nov 29, 2003 2:45 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 11:01 am

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 flights. Also looks like they were nearly bankrupt at the end of last year before some very small cash injections of what was probably enough to just "get by."

I also took interest in the adjusted loan terms of 18% interest, even if it is from a related-party. That section is an interesting read, as well as how they used the proceeds from the IPO - nearly half of it went towards paying off debt with the rest going toward additional aircraft and cash-on-hand. Problems is, with losses mounting this fast, that cash will burn quickly.

The report covers financial results through 1H, 2007, although they did a great job toward looking-foward at "today" (quoting Los Angeles early results and 7 x's JFK service) to make the reader feel that business is improving so much that profitability is around the corner. The also appear to be a lot of related-party director transactioins (loans and aircraft/engine leasing) as mentioned above, which have been eliminated in consolidated results.

It looks like Friday's JFK-STN flight was delayed from 8PM Friday until 10:15am Saturday morning, and 2 IAD departures were canceled again last week. They highlighted that repeat business has been high, but with reliability like they've had, I will be surprised if their passengers remain loyal.

Did anyone notice that last year they spent over $300 per passenger (amortized) on advertising/marketing?? Looks like they needed to reduce expenses in 2007 and this was an area that "gave." LAS service appears to be their real money maker these days and I'm sure most pax are ex-STN.

With results and reliability like they are currently experiencing, I'd be surprised to see MY make it thorugh the Winter and next Spring.

Just my scrambled thoughts, but if anyone has time it is a very good read.
 
VictorKilo
Posts: 170
Joined: Wed Jul 05, 2006 7:39 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 11:27 am

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 ongoing concern.

For the first half:

RASM = 12.9 cents
RASM (best month (June)) = 16.7 cents
CASM = 24.3 cents
CASM (ex fuel) = 18.8 cents
 
ThePRGuy
Posts: 1833
Joined: Thu Aug 10, 2006 10:07 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:13 pm

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, and often much cheaper. Plus you get the benefit of diamond club, LHR, lounges, and a more defined product.

Alex
Heathrow has been described as the only building site to have its own airport.
 
Orion737
Posts: 3044
Joined: Sat Jan 08, 2005 10:14 pm

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 7:15 pm

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.

Is this something to do with the reliability of their old 762s?
 
mutu
Posts: 265
Joined: Tue Mar 21, 2006 7:04 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 8:32 pm

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 sure these numbers are in line with expectations at this stage. Costs obviously include a fixed element which does not change with the size of the flying program. Probably disproportionate to the program at this stage. There is clearly no way management and investors think they have a profitable model at present as that would require something like a 70% increase in fares, and as such starts to be more expensive than corporate rates on AA/BA/VS. SO clearly planned losses until more routes and flights come on.

It would be interesting (but not possible) to see what profit/loss was made on flying ops before corporate costs etc
 
EXAAUADL
Posts: 1740
Joined: Tue Jun 13, 2006 3:48 am

RE: MAXjet Post 6 Month Loss

Mon Sep 24, 2007 11:07 pm

Quoting VictorKilo (Reply 29):
RASM = 12.9 cents
RASM (best month (June)) = 16.7 cents
CASM = 24.3 cents
CASM (ex fuel) = 18.8 cents

This kinda shows that they cant make money even with free fuel.
 
miamiair
Posts: 4249
Joined: Thu Jul 15, 2004 9:42 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 12:53 am

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 crap.

Their IFE consists of DigiPlayers. The seats do not have power to operate your lap top.

I would rather spend the money, fly an AA T7 between MIA and LHR instead of a MIA-JFK-STD to save some money.
Molon Labe - Proud member of SMASH
 
Orion737
Posts: 3044
Joined: Sat Jan 08, 2005 10:14 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 12:57 am

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 the way to secure repeat business.
 
lax20531
Posts: 12
Joined: Sat Nov 29, 2003 2:45 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 2:35 am

Quoting Orion737 (Reply 35):
felt sure they must be having 'issues' with the dispatch reliability with their aircraft looking at their on time performance record. This hardly is the way to secure repeat business.

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, and LAX.

STN-IAD-STN is canceled.
STN-JFK departed 1hr late.
STN-LAS also departed 1hr late
STN-LAX departed 1.5 hours late.

I'm beginning to wonder if they simply cancel (IAD) if the load factor isn't high enough to justify operating - especially given the financials we have seen. Appears cheaper to keep it on the ground. Could we see IAD dropped again in exchange for a different destination?

They mentioned Passenger Service Costs in their operating report as well, which include the costs to handle the displaced pax from their interrupted flights (although their T&C suggestly they are only obligated to refund the ticket if a flight is canceled.) Where do these pax end up.. on VS? In Upper Class, Prem Econ, or Econ?

It just doesn't look as if the schedule reliability (especialy ex-IAD) will allow that service to continue. Guess the subservice charter on Pace is no more either?
 
AEROFAN
Posts: 1413
Joined: Wed Aug 04, 2004 9:47 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 2:51 am

Ah give them a break. perhaps things will turn around in the last quarter
 
N77014
Posts: 812
Joined: Sat Apr 17, 2004 7:16 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 4:29 am

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 offer to roll their previous status into Maxjet's loyalty program.

If their product is as good as advertised, then prove it!
A new life awaits you in the Off-World Colonies...
 
LAXintl
Posts: 20183
Joined: Wed May 24, 2000 12:12 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 7:24 am

Quoting N77014 (Reply 38):
Challenge all TATL J-class customers to a satisfying flight or money refunded.

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 like BA & VS.

Instead its basically a 1980s generation business class product more akin to todays premium economy and priced accordingly. Want a true business class product, fly EOS and expect to pay accordingly.
From the desert to the sea, to all of Southern California
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 7:53 am

Quoting Jacobin777 (Reply 26):
...brand building.....

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 don't think any US network airline has a flawless record on its decision making... but the point is NONE of them - not even PA or EA had losses at the RATE MaxJet is experiencing.

Quoting Laxintl (Reply 39):
Instead its basically a 1980s generation business class product more akin to todays premium economy and priced accordingly.

And the network airlines do have some business class discounts. They can match on price and offer a far superior product - that is much more likely to be on-time.
 
StarGoldLHR
Posts: 1346
Joined: Mon Feb 16, 2004 1:29 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 9:52 am

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...

they like the idea of cheap business class to the US and the impression is this hit's everyones list.. however when it comes to booking seats the airline is losing on three main aspects...

1. Corporate travel policies (and Agent awareness).
2. Perception that flying MaxJet on business to the US is actually "cheap" flying and therefore not something to brag about...
3. Lacks the car "pick up" service from the city/canary wharf that some of the others offer ad the drop off on the other side.

People will consider flying to the US on personal travel using MaxJet but not on business because of the above reasons but also as it's convienient to where most "city" people actually live... Luton / Stansted.

I guess this equally applies to Silverjet and Eos, both who have advertised heavily in the city.

Personally, I think they lose out due to advantages (and kick backs) of a frequent flyer program... I would consider paying their fare for business class, but without the FF miles I dont do it..(but then I'm somewhat aviation "geek" orientated differently to most of the people I work with).
So far in 2008 45 flights and Gold already. JFK, IAD, LGA, SIN, HKG, NRT, AKL, PPT, LAX still to book ! Home Airport LCY
 
Flighty
Posts: 7721
Joined: Thu Apr 05, 2007 3:07 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 10:10 am

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 lot. But they (evidently) have so little money, they are unable to afford it.
 
747fan
Posts: 862
Joined: Thu Jun 21, 2007 7:40 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 10:14 am

Quoting Laxintl (Reply 39):
Instead its basically a 1980s generation business class product more akin to todays premium economy and priced accordingly. Want a true business class product, fly EOS and expect to pay accordingly.

 checkmark  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 like compared to the premium cabins of Pan Am and TWA back in the 1980's, however (after all, I'm only 18 years old). But MAXjet is basically competing against the top notch product of EOS with a low-end biz class seat that are like the seats of 15 years ago; they also offer service that is more similar to BMI, VS, and BA premium economy.
 
worldtraveler
Posts: 3417
Joined: Tue Aug 05, 2003 6:18 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 10:53 am

Quoting StarGoldLHR (Reply 41):
People will consider flying to the US on personal travel using MaxJet but not on business because of the above reasons but also as it's convienient to where most "city" people actually live... Luton / Stansted.

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 to use an inferior product; right now none of the upstart business class carriers offer a high enough quality service (including frequency and reliability) for business management to succeed in making their people use them.
 
thirteenright
Posts: 175
Joined: Sat Jun 09, 2007 11:28 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 11:23 am

Quoting 747fan (Reply 43):
But MAXjet is basically competing against the top notch product of EOS with a low-end biz class seat that are like the seats of 15 years ago

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 Eos is meant to be affordable first class. Different strategies.
 
cloudboy
Posts: 982
Joined: Mon Jan 26, 2004 12:38 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 11:33 am

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 on par with what you will get through MaxJet.

Takes time - every airline goes through pains when they build up. MaxJet has a new model, one that does not fit to your traditional booking methods and ideas, AND they are flying from very few airports and have no domestic connections. you are esentially talking about an airline flying one or two routes only. Once they start teaming up with partners - perhaps Midwest?- and once they get their advertising worked out ( I think they are doing a poor job of it) they will come around.
"Six becoming three doesn't create more Americans that want to fly." -Adam Pilarski
 
StarGoldLHR
Posts: 1346
Joined: Mon Feb 16, 2004 1:29 am

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 6:33 pm

Quoting Cloudboy (Reply 46):
and once they get their advertising worked out ( I think they are doing a poor job of it) they will come around.

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 of them (I work as a consultant and jump various company offices daily)... which means a large area of people who could afford... have heard of them.. they just havent actually tried them.

May be they need to hit a slightly different niche... rather than the City maybe they need to hit the smaller independant companies.. those people running a small-mid organisation with small global links.. who send sales people on business, but not pay business class prices... In other words "Citigroup" etc can easily afford first class so they do...
"ABC Traders from city X" cannot afford to do First, but to make the right impression can use this..
So far in 2008 45 flights and Gold already. JFK, IAD, LGA, SIN, HKG, NRT, AKL, PPT, LAX still to book ! Home Airport LCY
 
jacobin777
Posts: 12262
Joined: Sat Sep 11, 2004 6:29 pm

RE: MAXjet Post 6 Month Loss

Tue Sep 25, 2007 10:06 pm

Quoting Jacobin777 (Reply 26):
Quoting WorldTraveler (Reply 24):
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.

..young companies can do that..notice the "dot.bomb" companies which were able to do it for a few years before the rug came out....with MaxJet now being a publicly traded company however, I don't expect them to have losses (or very large negative growth rates) for too long.

[quote=WorldTraveler,reply=44]right now none of the upstart business class carriers offer a high enough quality service (including frequency and reliability)

 redflag ...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 something which I would consider "2nd class" either.. no 
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787kq
Posts: 377
Joined: Wed Mar 08, 2006 6:52 am

RE: MAXjet Post 6 Month Loss

Wed Sep 26, 2007 12:59 am

Quoting ThePRGuy (Reply 30):
Plus you get the benefit of diamond club, LHR, lounges, and a more defined product.

All seem like benefits except for LHR.  Silly