A Question About Maxjet

[Richard E]

Good evening. Hopefully I'm not putting any noses out of joint by asking this question as my first post and I'm asking it in the right place.

As a US Airline would Maxjet be required to post a bond with any of the regulatory authorities which would be used to refund passengers whose flights have been cancelled. If so, how could I find out who this is: as far as I've been able to establish it's none of the UK regulators, they're not members of IATA and the FAA website drew a blank. I've also tried to ask Maxjet but have heard nothing.

Any advice would be greatly appreciated.

Thank you

[Mr @ Spotty M]

Richard E
I would be very surprised if they did, it is the same in this country in that airline goes so does your money.
I thought that they were giving people their money back on unused tickets.
Only credit card customers in the UK can get money back and l think that is only if you brought goods from a UK company, the money is from the credit card company, unless you have taken out insurance.
This is how l see it, but l await to be told l am talking Bull s***.

[cjhants]

i paid for my maxjet tickets by AMEX, and they have just refunded me in full:p
if you paid by credit card you should get a refund from the card company, or if via a UK travel agent their bond should cover you AFAIK.
if you paid by debit card you may be:mad:

[befree]

Silverjet has had to place a £500,000 bond with credit card firms to hedge them for when they go under.

[san diego]

There has never been any financial protection for passengers who book flights direct with airlines, attempts by the UK's CAA to introduce protection a few years ago were thrown out by our friends at Westminster. As suggested above, if you paid by a UK issued credit card you are protected by section 75 of the Consumer Credit Act and all the banks appear to be playing by the rules. If you used a charge card or debit card, it is up to the bank's own policy whether to refund or not, if you paid cash or cheque, you are probably completely stuffed

[Bealzebub]

befree,

You do seem obsessed with this company. Any business and certainly a new or young business is a risk venture. In this respect Silverjet is no different from many others.

On the 16th January you wrote :

Silverjet has had to place a £500,000 bond with credit card firms to hedge them for when they go under

I searched for further information on this but couldn't find any corroboration. As the major credit firms Mastercard and Visa are entirely seperate businesses I was curious how such a "bond" could be placed with them jointly. I checked both companies merchant terms and conditions and cannot find any reference to such a requirement. Perhaps you could shed more light on this statement ?

[befree]

The information is in the 9 page document "Proposed £12m placing and £10m convertible loan" which is on the silverjet website under "about us"> investor relations > Rule 26 disclosure > Placing announcement – Nov 2007.

They also expect to get back a £2.5m ATOL by the 31st March. This is the month they preducted to be cashflow positive. Cleaver accounting to use the return of a bond as a proxiy for break even.

The document is very interesting. Some people are trying to drive me off the board for doing this reseach.

[Bealzebub]

Thank you for the reference. The relevant paragraph states:

Following the changes to the ATOL announced on 22 October 2007, the Directors expect
Silverjet’s collateral deposit of approximately £2.5m in respect thereof to be released by 31
March 2008. They also expect deposits of approximately £0.5m with various credit card
providers to be released by the same date.

It refers to "deposits of approximately £0.5m with various credit card providers". These deposits may be collected balances or monies held since the closure of its flyjet charter division, it doesn't refer to a "bond" ? In any event they expect to receive these sums rather than have them held in surety. The only collateral sum they refer to, is that in respect of the Air Tour Operators Licence in the sum of £2.5m.