« Well, That was Fast... | Main | Myair Bites the Dust »

July 17, 2009

JetAmerica Cancels Flights Indefinitely

JetAmerica, the air carrier planning to use aircraft operated by a third-party for their own flights, has announced that it will cancel all future flights indefinitely. This announcement comes after the carrier has made nearly a million dollars in bookings and conducted exactly 0 revenue flights. JetAmerica announced a delay for the start of flights two weeks ago, citing the difficulty in obtaining affordable slots at Newark. It appears that those problems could not be resolved, and were one of a number of factors which led to the carrier's demise. But ultimately, even if JetAmerica had obtained the slots, the carrier would still have faced numerous challenges in this environment. Airlines are cutting capacity left and right, and doing their best to raise fares. JetAmerica's business model, low fares combined with new capacity in small markets where getting sufficient traffic is a dubious proposition, was not a recipe for success. Although some suggestion has been made that the carrier could come back in a new form, don't expect its successor to be any more profitable. The people running JetAmerica don't have a clear idea what they're doing, and I imagine that without a significant change in leadership and business model, JetAmerica II will die quickly as well.

July 17, 2009 | Permalink

Comments

Hello Sam,
It’s quite the same for several European airline companies. Ryanair, the largest European low cost airline just announced yesterday that they are going to cut almost half of their flights in Stansted airport (London) Prestwick airport and Dublin Airport this winter. British Airways asked to its staff to work for free and Lufthansa, the german flag carrier, decided to cut 400 jobs until 2011. SkyEurope also looks for an investor to avoid filing for bankruptcy….
So the European airline market has desperately been trying to pick itself up and it has been quite difficult to anticipate what is going to happen in the months to come.

Posted by: Roman | Jul 22, 2009 3:24:38 AM

Post a comment