Maxjet ceases operations, files for Chapter 11

Washington DC
Source: Flightglobal.com
This story is sourced from Flightglobal.com

All -premium carrier Maxjet Airways ceased operations on 24 December and filed for Chapter 11 bankruptcy protection after failing to finalize a new round of financing.

“With today’s fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure,” the carrier says in a statement.

The airline earlier in December temporarily suspended trading of its shares on the Alternative Investment Market of the London Stock Exchange, to clarify its financial position.

At the time the carrier was in advanced discussions to secure financing for working capital, and expected the deal to close by year-end. “However, the company’s board of directors has now determined the proposed financing is unlikely to succeed in a timely manner, and after careful consideration determined to file the voluntary petition,” Maxjet says.


                                                                                                   © Maxjet Airways

Maxjet launched all-business class flights with Boeing 767s between London Stansted and New York Kennedy in November 2005. For the first half of 2007 the carrier’s operating losses grew to $31.9 million from $30 million for the previous year.

In October the airline dropped its Stansted-Washington Dulles flights, opting to bolster services on the three other US cities it served from Stansted - New York, Las Vegas and Los Angeles.

Fellow business-class carrier and direct competitor Eos Airlines is accommodating Maxjet passengers waiting for a return flight between New York and London.