Max Jet just quit flying and is filing chapter 11 . What airline do you think is next? my money is on Skybus they lost 16 million on just 22 million of revenue . They will have to basically double there ticket prices just to break even. virgin america lost 35 million there first three months of operation . I don't want to see anybody lose there job but why are so many investors trying to start new airlines ? Could be a blood bath this next year at least the first quarter.
Max Jet shut down
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CynicalResAgent
Veteran
I think Skybus has enough money to post losses for a while and if they cannot get the model to work still turn things around and switch their busniess model if they have to.
I think the reason Virgin America lost so much was because it took them a while to get approval but I think they had the aircraft painted and ready for a while. They probably incurred a lot of costs while not being able to generate revenue.
I believe both airlines were expecting to post losses for their first year. Of the two I think Skybus is in the most trouble because I think their lowcost model is not performing as they expected. It probably has more to do with the downturn in consumer spending in general. What I mean is that in general people are not spending the money for extra things and they based part of their projected revenue from ancillary things sold in flight. I believe their flight attendants make commission on things sold inflight. I'd guess that they are discovering that the people who will drive an extra hour to get to the out of a way airport to save 50 bucks won't spend that extra money saved on things like Toblerone or a $99.00 cubic zirconia tennis braclet.
I think the reason Virgin America lost so much was because it took them a while to get approval but I think they had the aircraft painted and ready for a while. They probably incurred a lot of costs while not being able to generate revenue.
I believe both airlines were expecting to post losses for their first year. Of the two I think Skybus is in the most trouble because I think their lowcost model is not performing as they expected. It probably has more to do with the downturn in consumer spending in general. What I mean is that in general people are not spending the money for extra things and they based part of their projected revenue from ancillary things sold in flight. I believe their flight attendants make commission on things sold inflight. I'd guess that they are discovering that the people who will drive an extra hour to get to the out of a way airport to save 50 bucks won't spend that extra money saved on things like Toblerone or a $99.00 cubic zirconia tennis braclet.
