WASHINGTON (TVLW) — Maxjet, a two-year-old company that touted itself as the first low-fare business class airline, has declared bankruptcy due to rising fuel costs, its president said.
“It is with deep regret that I must inform you that Maxjet filed Chapter 11 bankruptcy on 24 December 2007,” said president and CEO William Stockbridge in a statement.
“With today’s fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure,” he said.
The US company said it had made a deal with competitor Eos Airlines “for seats on Eos’ scheduled all-Premium service to accommodate passengers awaiting a return flight between New York and London.”
It also vowed to provide hotel accommodations for affected travelers in London, New York, Las Vegas and Los Angeles through early January 2008.
Using Boeing 767s re-configured to seat 102 passengers, Maxjet launched its New York-London service in November 2005, Las Vegas-London flights in November 2006 and Los Angeles-London flights in March 2006.
Maxjet’s transatlantic round trip fares ranged between 1,000 and 2,000 dollars, while Eos has aimed for a higher end of the market with return fares of around 6,500 dollars.