Originally Posted by
Land-of-Miles
Yes but surely the point is that LHR is a craphole which many of us like to avoid at all possible costs. What Silverjet have is an established operation missing the worst features common at LON and NYC. That and the good feedback from a slightly more upmarket customer base than Maxjet is presumably where LH or another buyer would see value. Also there is less risk buying into an existing operation which could be closed down much more easily if need be than starting a new greenfield operation and which is already attuned to a British Customer base. There is also the issue of upsetting BD should LH push ahead with plans to fly LHR-US.
A LH takeover of Silverjet could add the one thing that others have commented here is absent from Silverjet's current operation, a robust FF scheme. I am not really inclined to schlep to LTN or STN right now because I can fly *A from LCY much more conveniently. If I could accrue *A miles and status I might think very differently about things.
As a consumer, we may try to avoid it, but *A are obviously trying to break into it even more. Lufthansa is the largest overseas airline at Heathrow & obviously sees some need in serving the 'craphole' you describe. Whilst Heathrow has it's problems, 67 million passengers pass through it a year - wheras a 'craphole' would presumeably have none.
Large FF base could easily turn an operation such as Silverjets around since it would gain access to the target market immediately. However, I still think if Lufthansa want to enter the LON-NYC market they'd fly from Heathrow for Star Alliance. Silverjet would definetly be 'on the side' if it were purchased.
Originally Posted by
frankvb
An interesting question is what would happen to the fares if LH would take over Silverjet. Should they keep the fares as low as they are now, LH would be effectively undercutting every *A airline operating out of LHR, which wouldn't receive much appreciation....
Valid point. Most discounted J returns to eastern seaboard work out around £1200 yet Silverjet can sell as cheap as £879. Silverjet would hardly make themselves popular raising the prices, but then again, there isn't a direct *A LON-NYC flight is there?