KeyPilot
The significance of this is what it says for the concept of all-business class travel, a new (and therefore small) but also potentially significant sector.
I think that's right. They may have a teeny-tiny percentage of the sector but it is easier to lose that. The LH PrivatAir model has worked because it is an extension of their brand and not a new one. These folks have had to start from scratch and are still scrabbling.
charterguy
I love flying Silverjet !! It is the only airline where I can buy a seat for £995 when the cost of that seat to the airline is nearer £2,000. Now that's value for money.
It may well be!!! But it is not a long term proposition for an airline.
outofsynch
Why don't American Airline announce a rescue package to uplift Silverjet passengers.... Great way to steal your competition??!
Yes - and to get in trouble with the regulators. Several of the large global carriers have been in trouble before for colluding on the demise of competitors (Laker and Virgin). If AA so much as whispered in the ear of a single Max pax - they would be standing into danger. What Max have done is open the new route from STN and prove it to be viable. If Max close then AA will pick it up for almost zero investment and they will be offering FFMs too.
I don't think that the all business class model
is fundamentally flawed. LH has proved it and several of the majors are now preparing to follow. THAT is what will put the kybosh on the start-ups. I expect that the three operators we are discussing here will be merged into one within two years.
One of the reasons for saying that is the recession that is now upon the UK and the USA. You will recall that someone tried this concept in 2001 but 9/11 happened before they started operations (Blue Fox?). It took four or five years to get the concept going but we now face a full-on recession that will change a lot more than just 9/11. That event only suppressed demand for a year or two, whereas the recession will END demand. Then consider the fuel cost and the power of the majors ...
As is often the case, the innovator runs for a while but they are rarely the ones who stay the distance. Who invented the PDA? Apple with the Newton. Who made it a global phenomenon? Palm with their Pilot.