Silverjet ceases operations

by Grant Martin on

As expected, Silverjet ceased all operations on Friday, marooning more believers in the “business-class-only” model and completing the hat trick of airlines in that niche to go bankrupt in the last six months. At root of the issue are the same old villains, high oil prices and lack of demand in the business-class-only market. It’s just too hard to get started as a niche carrier these days.

On their website, the recently deceased airline leaves a brief eulogy and thank you to its dedicated passengers, offering to those stranded: “You are advised to seek alternative travel arrangements with other carriers, and contact your credit card company or travel agent directly for information on obtaining refunds.”

So much for their CEO Lawrence Hunt’s strong words and encouragement after Eos and Maxjet fell.

All eyes are now on L’avion, the French carrier established in 2006 flying under the same business model (but to Paris instead of London). Will they prevail where Maxjet, Eos and Silverjet failed? What about British Airways‘ OpenSkies airlines who are set to fly next month?

I wish there was not as direct a correlation between oil prices and airline bankruptcies as there is now. But if it the statistical data hold true, I’m not sure if anyone has a chance anymore.

Silverjet’s shares suspended as airline begins to falter

by Grant Martin on

Remember when Eos bit the bullet a few months back and Silverjet grazed close to the line but was bailed out by the United Arab Emirates? Well, that money didn’t work out. One of the last business-class-only carriers just suspended it’s shares from trading in a move that many suspect may lead to the airline’s collapse.

“It’s business as usual” they claim, however, as they’ve been looking desperately for that five million dollars that the UAE was supposed to front, and company brass still encourages passengers to keep booking tickets.

Recall that right before Eos went south that they suspended trading of their shares as well. And that Maxjet, another competitor on the transatlantic business-class-only sector folded late last year because they couldn’t operate in the black.

Would I buy a ticket now? Nope.

But for some reason, bureaucrats still believe that business-class-only service is a profitable operation. Singapore Air recently started service direct between New York to Singapore with Los Angeles to Singapore slated for later this year. British Airways‘ OpenSkies plans to start service between JFK and much of Western Europe. Why? What do you know that these niche carriers didn’t?

At least the two new competitors have strong financial backing from legacy carriers. As history predicts though, they’re in for a tough road ahead.

OpenSkies airlines set to take flight June 19th

by Grant Martin on


With availability in the transatlantic sector starting to open up, airlines are starting to take advantage of new slots and flexibility across the pond. OpenSkies, British Airways‘ new niche airline, plans to do just that.

Named after the oft mentioned OpenSkies agreement put into place between the US and European Union earlier this year, the airline of the same moniker plans to offer a new, unique approach to intercontinental travel. With only 82 seats on a Boeing 757 aircraft (for comparison, Continental‘s 757 has over 215 seats), OpenSkies aims to offer a more comfortable, personal experience on air travel at a price barely more than a ticket on a legacy carrier.

Three classes of service will be offered, biz, premium and economy, with prices ranging from the $1,746 one way at the high range to $554 at the low end.

In addition to the space proffered by low seat count, OpenSkies boasts superior in-flight amenities, including leather seats, 50 hours of audio and video on personal entertainment systems, lie-flat seats in biz, a la carte meals and wine service and everything you need to make you fit and prepared for the new morning in the EU.

Sound nice? I thought so too. June 19th marks the first flight for the airline, traveling between New York‘s JFK airport and Orly in Paris. Planned routes include Brussels, Milan, Frankfurt and Amsterdam by the end of 2009.

What’s nice about OpenSkies is that they have strong financial backing from British Airways, a solid management and strong experience in the sector. So you can have confidence in the niche carrier being not only around for a while but also in reasonable financial shape for the near future, even if oil is more expensive than gold.

Competition in the premium transatlantic market has recently dropped off as well, so hopefully this will leave them a larger market share.

You can book tickets and check out the sweet service on flyopenskies.com.

Last business class only airline almost goes south, bailed out by UAE

by Grant Martin on

If you’ve been following the airline industry over the past few months, you may have noticed that things aren’t going so hot. Several airlines serving niche industries have gone under including Skybus (budget), Oasis Hong Kong (long haul budget) and Eos and Maxjet (business class only).

When the market is tight, niche carriers like above are particularly affected because passengers tend to revert back to the old trustables, legacy carriers that have a lower probability of going out of business and that can provide a sure thing. Effectively, the downturn in the industry creates a secondary problem for the company: in addition to now having to pay high fuel and operating costs, fewer passengers are now generating revenue with which carriers can operate.

Thus defines the problems faced by the half dozen or so carriers that have gone belly up in the last few months, and what is continuing to plague carriers that are still afloat.

Like other carriers, the last remaining business class only airline in operation, Silverjet, has been struggling in the recent market. It was only by a recent injection of $25m by a private United Arab Emirates investor that they’ve been able to stay afloat.

How long will Silverjet be able to last on this crutch? Will they be able to turn business around and operate with a profit in the current market? Is business-class-only a viable model? Your guess is as good as mine. Stay tuned to find out.

Singapore Airlines to start business class only service between US and SE Asia

by Grant Martin on

As market trends have been predicting left and right, business-class-only flights are the new big thing. British Airways and Virgin Atlantic are scrambling to lock in routes between the East Coast and London, while Eos and Silverjet fight them off from Luton and Stansted.
But nobody has dared enter the transpacific market. Until now. Early Tuesday morning, Singapore Airlines announced the coronation of a new business-class-only service from New York and Los Angeles to Singapore. When they reconfigure their A340 aircraft, they will be the first of their kind, with 1-2-1 business-class seating throughout the entire cabin.

These are the same business class seats that they put on the A380, the ones that convert into a horizontal bed if you so desire. Coupled with the superior transpacific service that Singapore Airlines offers, this will definitely be a sought after flight.

Service is scheduled to start in May from New York direct to Singapore, while the Los Angeles flight will convert later in the summer. If you already had a flight during that time period, make sure you double check your schedule to make sure it hasn’t been tweaked.

All in all, it seems like a great product to me, although to be honest with you I’m a little scared to look at the price of seats. Once service gets rolling this summer I’ll try to get some good pictures and a real review for you guys.