All-premium-class transatlantic carrier Eos Airlines on Saturday filed for Chapter 11 bankruptcy and said it would cease all operations Sunday, becoming the fourth U.S. carrier to shut down in less than one month.
Eos said it would operate two flights on Sunday from London Stansted Airport to John F. Kennedy International Airport in New York, but cancel all other flights and cease operations thereafter.
Eos officials in a statement blamed the shutdown not on skyrocketing jet fuel prices, but instead on a failure to close a planned investment, saying that it had executed its business plan and investors believed in its business model.
"We had been clear since closing on our last round of financing that we would need additional capital. As difficult as it is to raise funds in the current environment, investors believe in our business model and we were on the verge of success," said Eos CEO Jack Williams in a statement Saturday night. "Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome. It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations."
Eos' shutdown not only follows the recent disestablishments of Aloha Airlines, ATA Airlines and Skybus, but also the
Christmas Eve demise of all-premium-class transatlantic competitor Maxjet, after which Eos officials
defended its business model as higher-end, more efficient and more corporate-focused than Maxjet.
Eos' demise leaves what just recently was a trio of transatlantic all-premium competitors with only Silverjet standing, but it, too, is reported to have financial trouble, with several British media outlets reporting in April that Silverjet is seeking a buyer.