Two-year-old all-premium-class transatlantic carrier Maxjet Airways today ceased all operations, effective immediately, and said it filed for Chapter 11 bankruptcy.
"With today's fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure," said Maxjet CEO Bill Stockbridge in a letter posted on the company's Web site.
Stockbridge's letter said Maxjet has contracted with Eos Airlines to accommodate stranded passengers flying between London and New York, and that Maxjet has secured hotel rooms in Los Angeles, Las Vegas, New York and London for affected passengers. Continental Airlines also said it would accept Maxjet tickets for standby travel.
Maxjet launched all-business-class service to London Stansted Airport from New York's John F. Kennedy International Airport in November 2005
(BTN, Oct. 31, 2005), later adding transatlantic service to Las Vegas and Los Angeles International Airport. The carrier in the past two years was part of a spirited battle on the New York-London route with all-premium-class competitors Eos and Silverjet, as well as American Airlines, British Airways and Virgin Atlantic Airways
(BTN, July 9).
However, Maxjet on Dec. 7 suspended the trading of its shares pending a "clarification of its financial position."
Meanwhile, Eos today released a statement affirming its financial status. "We are confident our business model works and this sets us apart from other early stage companies," said Eos president and CEO Jack Williams.