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Jan18
Will Silverjet Survive the Year?

Will Silverjet follow the way of MAXjet?  The UK based airline is defending their strategy after a brokerage said it too was "doomed to fail."  This comes on the heels of the collapse of MAXjet which filed for bankruptcy last month. 

"We had a record sales week last week in the U.S.  We've seen a massive increase in corporate enquiries by companies looking to cut costs," said Chief Executive Lawrence Hunt.  

Seats on Silverjet run several hundred dollars cheaper than the largest rival, British Airways, on some routes.

Hunt said Silverjet would succeed where MAXjet had failed because it gave better service and had managed to put up prices when fuel costs rose.  But with the launch of British Airways Open Skies, Silverjet may have to compete for customers. 

But giant American Airlines is always lurking.  The US giant was quoting prices significantly below that of MAXjet, which could have led to their demise.  What would stop American or British Airways from defending their turf?  Both of those airlines have very deep pockets and love business travelers, enough to undercut Silverjet, just like they did MAXjet.  

Silverjet continues to stand behind their product and the stability of their airline, citing that the airline will bring two new aircraft into service in late May or early June and is looking at the U.S. west coast, Miami, India and South Africa as possible destinations.  

The Guardian (UK) 

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