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."