Maxjet ceases operations, files for bankruptcy protection

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Transatlantic carrier Maxjet filed for Chapter 11 bankruptcy protection as it ceased operations the day before Christmas after more than two years of service.

"With today's fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure," said Maxjet President and CEO William Stockbridge in a statement posted on the carrier's Web site.

In the statement, Stockbridge said Maxjet had made arrangements with Eos Airlines to accommodate its passengers seeking return flights from New York and London.

"Passengers needing return travel between London, Los Angeles and Las Vegas will be contacted regarding their flight re-accommodations," Stockbridge said, adding the company had 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."

Customers who choose to make flight arrangements directly with other carriers should seek refunds for the unused portion of their ticket from their credit card companies or travel agents, Maxjet said.

Maxjet began operating in July 2005 offering all-premium, transatlantic service between New York and Stansted (London). It later added routes to Las Vegas and Los Angeles.

From the outset, rising fuel costs were a key concern for the airline along with competition from other carriers.

An AP report noted that in October, American Airlines launched service between New York to Stansted to directly compete with Maxjet, which likely contributed to its troubles.

"We are extremely saddened to discontinue a service that we so passionately believe in," Stockbridge said, "and we thank our loyal flyers who helped build Maxjet since our start in 2005."

To contact reporter Michael Milligan, send e-mail to [email protected].

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