�Boutique airline� MAXjet Airways today requested that its shares be suspended in advance of a statement from the airline about its rather precarious financial situation. MAXjet flies five Boeing 767-200s from London-Stanstead to three US cities (JFK, Las Vegas, and Los Angeles) with around 100 leather seats apiece and four-course meals (not to mention champagne cocktails and canap�s). The airline went public in June, but has since flown into a rough patch (their stock has fallen 50% and new route from London to Washington was axed, in addition to planned service to Miami starting next February).
Not all the news is negative, though. MAXjet carried 47% more passengers last month than it did last November, while the airline�s load factor increased 11% to 69%. But although more seats are being filled, MAXjet is finding it harder to make money. Lots of factors � increased competition with carriers like Silverjet and EOS, high oil prices, and a weak US dollar (which particularly affects an airline with so much UK-based traffic) could be to blame. The airline�s loss increased to $49.5 million in the first half of 2007, up from $30.4 million in the same period a year ago.
According to MAXjet, everything is business as usual, for now. The airline�s announcement about its finances, according to a statement released by the airline, will �be made as soon as possible�. �The company wishes to confirm to its employees, customers and suppliers that business continues to function as normal.� Whether or not MAXjet will be able to get over this remains to be seen � the transatlantic business travel market is notoriously competitive, and with British Airways getting in on the game soon, things aren�t likely to ease up. If BA arch-rivals Air France or Lufthansa also consider entering the premium transatlantic market at a more competitive rate (and Lufthansa has already made moves towards doing this), they could seriously jeopardize the futures of all-business class airlines like MAXjet.
Not all the news is negative, though. MAXjet carried 47% more passengers last month than it did last November, while the airline�s load factor increased 11% to 69%. But although more seats are being filled, MAXjet is finding it harder to make money. Lots of factors � increased competition with carriers like Silverjet and EOS, high oil prices, and a weak US dollar (which particularly affects an airline with so much UK-based traffic) could be to blame. The airline�s loss increased to $49.5 million in the first half of 2007, up from $30.4 million in the same period a year ago.
According to MAXjet, everything is business as usual, for now. The airline�s announcement about its finances, according to a statement released by the airline, will �be made as soon as possible�. �The company wishes to confirm to its employees, customers and suppliers that business continues to function as normal.� Whether or not MAXjet will be able to get over this remains to be seen � the transatlantic business travel market is notoriously competitive, and with British Airways getting in on the game soon, things aren�t likely to ease up. If BA arch-rivals Air France or Lufthansa also consider entering the premium transatlantic market at a more competitive rate (and Lufthansa has already made moves towards doing this), they could seriously jeopardize the futures of all-business class airlines like MAXjet.
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