MAXjet bites the dust

Just a week after reassuring travelers that it would keep operating normally despite some financial difficulties, all-business-class airline MAXjet filed for Chapter 11 bankruptcy on December 24 and stopped flying. The company cited “today’s fuel prices and the resulting impact on the credit climate for airlines” as the primary culprits in its fate. MAXjet said it is rebooking passengers onto Eos Airlines for service between Newark and London Stansted. “Passengers needing return travel between London, Los Angeles and Las Vegas will be contacted regarding their flight reaccommodations,” MAXjet said. Those who want to rebook canceled MAXjet flights themselves should “seek a refund from their point of purchase (credit card or travel agency) for the unused leg of their journey,” the company said. MAXjet noted that it has also secured hotel rooms in London through early January for passengers whose travel plans are disrupted by the shut-down. For full contact details on refunds and rebookings, go to www.maxjet.com. Continental Airlines said it will accept MAXjet tickets on a standby basis through January 6 for travel from LAX, LAS and EWR to London Gatwick, with a $50 per segment ticketing fee. US Airways is also accepting MAXjet tickets on a standby basis for a $100 per-segment fee through January 6.

Other all-premium airlines operating between New York/Newark and London don’t seem to be facing the same difficulties as MAXjet. Although MAXjert blamed limited availability of financing for airlines, Eos Airlines noted that it recently secured $50 million in new equity capital from institutional and private investors, allowing it to acquire two more 48-passenger 757s. Claiming that the company is “flight level profitable,” Eos CEO Jack Williams added: “We are confident our business model works, and this sets us apart from other early-stage companies.” And Silverjet said it was recently successful in raising $24 million from existing shareholders and getting a $20 million convertible loan. “This fundraising was conducted in difficult market conditions, and the overwhelming support we have had demonstrates investor confidence in Silverjet and highlights the strength of our business model,” said CEO Lawrence Hunt.