Investment bank Goldman Sachs is reportedly looking to invest in a business-class-only airline. (6/27/2007)
According to The Guardian, the bank has had talks with airline executives about a possible carrier that would be able to take advantage of the popularity of business-class flights across the Atlantic. It is being said that any new airline established by Goldman Sachs would be run as “a conventional private equity investment” rather than an air taxi service.
Goldman Sachs has already held talks with Silverjet about a possible investment but the discussions came to nothing.
Recently, Maxjet Airways, the US start-up all-business-class airline, had raised Ł50.5m in an initial public offering.
In another report, from The Wall Street Journal, the popularity of the new breed of airlines was highlighted.
“Can’t stand the cramped conditions of coach cabins on long flights? Can’t afford $8,000 for business class across the Atlantic on a major airline? There’s an alternative now, and it’s growing rapidly,” it reported. “Call it business class “lite” — fewer amenities, but plenty of comfort at a fraction of the price. Two new start-ups, Silverjet from England and L’Avion from France started flying in January between Europe and the US, joining US-based Maxjet in offering all-business-class service at prices as low as $1,398 round trip. A fourth start-up, Eos Airlines, offers a first-class suite with New York-London round-trip tickets priced at between $3,800 and $7,500.”
“Eos and Maxjet have replaced their chief executives since they started flying in late 2005 but have shown staying power and are expanding their flying this year. Maxjet now flies to London from New York, Washington, D.C., and Las Vegas. Los Angeles service will begin August 30.”