Another One Bites the Dust

Just when most of the world seems ready to sit down and enjoy the latest in Christmas diversions, comes word of another airline bankruptcy... stranding a number of passengers halfway around the globe, in the process. MAXjet Airways is the two year old airline serving a business class market for a number of transatlantic routes, that ceased operations on Christmas Eve, citing the usual culprits in a US airline bankruptcy petition... failure to raise needed operating capital, rising fuel costs, and an increasingly tough competitive environment.

The (Dulles) Virginia based carrier has told a number of media outlets that it is endeavoring to get stranded passengers new flights between their normal destinations, cities that include London, New York, Las Vegas and Los Angeles. A competing carrier, Eos Airlines, has been contracted to deal with a number of displaced flyers currently stuck in London and New York. 

Passengers with MAXjet tickets have a few options at this point... if the tickets were booked through a travel agency or using a credit card, some refunds may be possible. Continental Airlines has indicated it will honor some MAXjet tickets for standby flights through January 6th... though a $50 dollar fee (as well as the usual security fees and such) may be required to use them.

The bankruptcy filing seems a mite surprising to some airline observers who note that MAXjet has planned significant expansion in recent months, including the addition of another Boeing B767-200 -- though the death knell may have come as a result of increased competition presented by American Airlines on some key routes.

This is probably the end of MAXjet... as the carrier admits that it, "expects to liquidate all or part" of the company, in the wake of the conclusion that needed financing was not in the offing.

MAXjet Statement (by William D. Stockbridge, President and CEO)

"It is with deep regret that I must inform you that MAXjet filed Chapter 11 bankruptcy on 24 December 2007. With today’s fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure. Our top priority is to assist our customers, particularly those who already have begun their travel with us, in securing alternative flight accommodations.

MAXjet has contracted with Eos Airlines for seats on Eos’ scheduled all-Premium service to accommodate passengers awaiting a return flight between New York and London. Passengers needing return travel between London, Los Angeles and Las Vegas will be contacted regarding their flight re-accommodations. Any customers who choose to make flight accommodations directly should seek a refund from their point of purchase (credit card or travel agency) for the unused leg of their journey.

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

On behalf of the entire MAXjet family, we extend our apologies to you for the inconvenience. We are extremely saddened to discontinue a service that we so passionately believe in, and we thank our loyal flyers who helped build MAXjet since our start in 2005."

FMI: http://www.maxjet.com/