Airline MAXjet Files for Bankruptcy
(12-24) 06:24 PST LONDON, United Kingdom (AP) —
MAXjet Airways said Monday it had filed for bankruptcy, taking what the all-business class airline called a “drastic measure” because of soaring fuel prices and the deteriorating credit market.
The bankruptcy forced MAXjet to reserve hotel rooms for stranded holiday passengers who had booked return flights between New York and London. The carrier was also working with another airline to find alternative routes, officials said.
In a message posted on the airline’s Web site, president and chief executive William Stockbridge said the Dulles, Va.-based airline had filed for Chapter 11 bankruptcy.
“With today’s fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure,” Stockbridge said. “Our top priority is to assist our customers, particularly those who already have begun their travel with us, in securing alternative flight accommodations.”
MAXjet launched in 2005 and offered “all-premium” flights between London’s Stansted Airport, New York, Las Vegas and Los Angeles.
The airline also advised customers who had booked tickets to seek refunds from their travel agency or credit card company.
The carrier said trading in its shares on the London Stock Exchange’s Alternative Investment Market Д halted earlier this month “pending clarification of its financial position” Д would remain suspended. MAXjet shares last traded at 73.5 pence ($1.45).
Hotel rooms were being booked in London, New York, Las Vegas and Los Angeles through early January 2008.
