Maxjet Files for Bankruptcy

A business class only airline that flew transatlantic routes from Stansted airport in Essex has ceased flying a day before Christmas after filing for bankruptcy.

American-owned MAXjet, which started services two years ago, operated between Stansted and New York, Las Vegas and Los Angeles.

The airline said it had contracted a rival carrier, Eos, to accommodate passengers awaiting a return flight between New York and Stansted, and would be contacting passengers needing return travel between London, Los Angeles and Las Vegas.

In a message on its website, William Stockbridge, the airline's president and chief executive, said any customers choosing to make their own alternative arrangements should seek a refund from their credit card provider or travel agency for the unused leg of their MAXjet journey.

"We have also secured hotel rooms in London, New York, Las Vegas and Los Angeles through (to) early January 2008 which we will provide to affected passengers whose travel plans have been disrupted," he said.

Apologising to passengers, Stockbridge said MAXjet had been forced to take "this drastic action" because of "fuel prices and the resulting impact on the credit climate for airlines".

Last month MAXjet shares on the London Stock Exchange's Alternative Investment Market were suspended.

Stockbridge said: "Our top priority is to assist our customers, particularly those who have already begun their travel with us, in securing alternative flight accommodations."

As well as Stansted-based Eos, MAXjet had to contend with Luton-based Silverjet in the business class only transatlantic sector.

26 December 2007