1K-SFO

MaxJet filed for Ch.11 12/24, ceasing operations immediately. MaxJet was offering single-class J 762 service. They're really AA's most direct competitor out for STN -- the other carriers (EOS and Silverjet) offer F-level service on 757s. AA hasn't yet begun its second frequency nor finished its lounge.

What do we think the chances of STN service continuing (and two frequencies at that)? I'm guessing the single current service is all that lasts.

salut0

Note that, of these other carriers, Silverjet operates from Luton (LTN) and not Stansted (STN). That makes it a slightly less direct competitor for business. And AFAIK, Silverjet was midway between Maxjet's business class style service and EOS' first class style service.

EOS does fly from STN, but it is aiming at the higher end of the market, I think. More a competitor to F than J -- and AA's flights to STN don't have F (since they use a two-class 767).

zman

Depends on the revenue/yield & Margin. If they can make $ the flight will stay. If they have a better place to use the plane, they will move it. STN has low airport fees and allows quick turns compared to LHR & LGW. Also LHR is slot limited. So I think AA will give it a go for a while, but maybe with only one flight.

cstead

I would think that they would maintain at least 1 flight for a while, just to see how it works out. London is a big market, and London to NYC is a big market, and so far there's been success by EOS and Silverjet in operating out of other airports. AA can basically tout itself as the most complete US-London and NYC-London airline

flyboy777

Everything will depend on $, but isn't the second daily flight on sale already? I reckon we could see an ORD or MIA flight. They may just replicate everything out of LHR & add DFW/LAX etc. etc. Since STN is the only airport in London with reasonable plans to expand, AA should get in there & establish a presence. I'd also expect other carriers to follow namely CO then DL.

bb-miler

The just need to fix the STN-JFK departure time.

I just flew LAX-JFK-STN-onward on LCC to EU, and I would have done the same return on AA - but since I am now coming in from the EU, there is no way in heck to connect at STN to a 10:15am departure. Seems they should move it back to 2pm-ish (like one of the LGW-DFW departure)

CO FF

AA will also leave things as is for a while - their lawyers want them to remember that it looks bad to kill off the competitor and shut down their own operations immediately...they'll wait til the body is cold first.

nacirema

I will admit I don't know much about airline business but I have to ask.

On what basis can anyone point the finger at AA for MaxJet demise?

Perhaps I'm naive but I don't see any legal problems for AA if they decided to pull out tomorrow, other then breaking any standing contracts with the airport, if such exist, etc.

Am I wrong?

AA-Platinum

I just heard an airline analyst (sory, I didn't get his name) say on the CBS radio network that AA's entry to STN was the cause of MaxJet's demise

sukn

From a story on msnbc.com:

“High fuel prices were a contributing factor, but American’s inauguration in October of (service between New York’s John F. Kennedy International Airport and London’s Stansted Airport) ... was the coup de grace,” said Robert Mann, an airline consultant in Port Washington, N.Y.

While business class service can be very profitable to airlines, it’s also a very “thin” market, Mann said, serving, typically, “40 to 70 seats per flight, depending on the route and aircraft.” Any loss of market share to a competitor can be devastating, particularly to an all business-class carrier like MAXjet that didn’t have revenue from economy passengers — or a robust route system — to fall back on.

“They could not get the current premium class passengers away from major carriers,” said Mike Boyd, president of The Boyd Group, an Evergreen, Colo., airline consultancy.

Link to complete story:

http://www.msnbc.msn.com/id/22388471/

nacirema

I'm not disputing the fact that AA was not the cause, but in a capitalist, unregulated market, how can anybody get AA for anything in a court of law?

unless, AA colluded with other airlines to kill MaxJet, then maybe, but otherwise?

I believe one on one competition is the backbone of a capitalist market. Let the best (wo)man win or am I missing something?

Exleftseat

RIP: Braniff, Legend, Maxjet. Capitalism well executed by AA.

eireman

Look for flights in J ex LAX now to climb

N830MH

Yes. Also, don't forget Pan Am, Eastern, Western Airlines, Morris Air, Air Florida, Piedmont, too. Thanks!

shoodawg

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