Silverjet, RIP

by: Felix Salmon May 30, 2008 | about stocks: AMR / BAIRY.PK / CAL / DAL / LCC / UAUA    
Felix Salmon

Felix Salmon

About this author:
Become a Contributor Submit an Article
  • Font Size:
  • Print

Another airline bites the dust:. This time it's Silverjet, the all-business-class airline: It lasted just a few months longer than MaxJet. The official statement from Silverjet is pathetic, in the literal sense of the word:

We extend our sincerest apologies to those of you who have travel plans with Silverjet in the future and at present. 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.


We are working actively with new investors who are prepared to inject new funds so we can recommence operations. If we are able to achieve this, we will make an announcement as soon as possible and we hope to be able to bring you our very 'sivilised' flying experience again.

This is yet another lesson that airline tickets should be booked with a credit card - it's the only realistic way of getting a refund if the airline goes bust.

I'd put the chances of Silverjet managing to "recommence operations" at roughly the same probability as the chances of oil falling back to something below $75 a barrel.

In terms of all-business-class airlines, this leaves Eos as the sole carrier on the key London-New York route. Which won't make much difference to the air-travel experience of people like former London mayor Ken Livingstone and stock analyst Mike Stoddart, both of whom were banned from flying on Silverjet by its idiosyncratic CEO, Lawrence Hunt. Such actions probably didn't cause Silverjet's demise, but they can hardly have helped.

Related Articles

This article has 9 comments:

  •  
    May 30 09:39 AM
    Didn't EOS go into bankruptcy & cease operations back in April ?

    Reply | Link to Comment
  •  
    May 30 09:42 AM
    Eos quit scheduled flying in April. So there is no more all premium class service out of London.

    But in 2009 British Airways plans to start London City Airport to New York all business class in a 32 seat Airbus 318
    Reply | Link to Comment
  •  
    May 30 10:05 AM
    L'Avion is still flying New York-Paris. And Privatair for LH and LX various points EU to US. That's it for now...
    Reply | Link to Comment
  •  
    May 30 12:01 PM
    It's only a matter of time before a legacy carrier goes under...
    Reply | Link to Comment
  •  
    May 30 02:48 PM
    Let's hope it's a big one (legacy carrier to die).... USAirways has been TRYING to die for five years; I suggest we let them (and their little dog, HP, too). DL+NW lost 10B in Q1 so maybe one well place magic bullet will take care of both of them. And it would be fun to see jetBlue go just on general principle (DirecTV, indeed!).
    Reply | Link to Comment
  •  
    May 30 07:37 PM
    Is there anyone out there that would like to see the airlines live?! Or shall we have only one, Aeroflot 1970s style, and have insanely high prices, massive delays and unmet demand? Perhaps some sanity in the industry and the economy, realistic fuel prices, and good competition with a diversity of available products would be nice. I'm actually sorry to see SilverJet go, since they tried to offer something special. It wasn't like they didn't have loyal customers either, just a very violent economy to try and ride.
    Reply | Link to Comment
  •  
    Jun 01 02:48 PM
    Talk about an industry that is in the "destruction"... phase of creative destruction. We believe that the long-term trends are towards more flexible, point to point travel and more shuttle like service between the large cities. There's lots of technology needed in the air and on the ground to pull this off but the work is in motion, it will just take time to get there. Broader questions remain about how the behavior of consumers, businesses and travel professionals will adapt to new options and different approaches to travel. In the short term, I expect to be attending far more meetings online!
    Reply | Link to Comment
  •  
    Jun 02 07:31 PM
    RE "not Bob Crandall" comment-- you need to grow up & get a life... and a brain. Wishing all those airlines would go under is pure stupidity. Do you have any regard for all the people whose lives would be torn apart by the loss of those jobs? Just ask all the Aloha Airlines employees how much fun it is dealing with no job, no insurance, no retirement.
    Here's my "wish" for you-- that tomorrow you get YOUR pink slip, babe.
    Reply | Link to Comment
  •  
    Jun 03 08:51 AM
    Have any of you tried their product? It happened to be first class! A breath of fresh air from the usual fair, it's underpricing that has brought them their woes, I'd have paid extra for the fuel! It was nice to be picked up at the office with my colleagues, wisked to the airport and put straight onto the aircraft and put to bed! You only had to get up to go to the loo and they were great and the ladies had their own AND they didn't stink (the loo's that is!). I'll miss them, let's hope they bounce back soon! I also agree with Lizzy, there are a lot of other people besides the customer who suffer, employees, suppliers, ground staff, cleaners, maintenance engineers etc... It takes a lot of effort to keep aircraft flying safely!
    Reply | Link to Comment
More Comments on AMR ยป
Top Rated Comment Streams:

Numbers are net rating-

See all Top 100 »
More by Felix Salmon

Investment Resources
Money Management
Research
Seeking Alpha provides these ads as a service to its leading contributors
Articles on related themes
Airlines
Autos
Aircraft & Parts
Rail Transport