MaxJet went bankrupt and ceased operations today. The all-business-class discount airline had flown between the U.S. and London Stansted Airport for two years.
I mentioned here Dec. 8, after MaxJet abruptly halted trading its shares in London and didn't have the gumption to tell its customers why, that travelers should avoid the airline.
If you hold a ticket on MaxJet now, you're what the bankruptcy court calls an unsecured creditor -- meaning you're at the back of the creditors' line when it comes to divvying up any assets that might be left. But credit card companies issue refunds for services not provided, so if you're holding a MaxJet ticket, call your credit card company immediately.
I mentioned here Dec. 8, after MaxJet abruptly halted trading its shares in London and didn't have the gumption to tell its customers why, that travelers should avoid the airline.
If you hold a ticket on MaxJet now, you're what the bankruptcy court calls an unsecured creditor -- meaning you're at the back of the creditors' line when it comes to divvying up any assets that might be left. But credit card companies issue refunds for services not provided, so if you're holding a MaxJet ticket, call your credit card company immediately.
MaxJet's end comes two months after American Airlines began flying a new route between New York and London Stansted, in what was seen as a strategic move to grab business-class market share from MaxJet and Eos, which also fliles to Stansted, an airport more convenient to London's financial district than Heathrow. As is its wont when trying to chase a competitor from a market, American undercut MaxJet's fares.
Eos, meanwhile, issued a statement saying that its load factors were over 73 percent in September. "All signs point toward continued growth" next year, said Eos, which flies 757s outfitted with 48 business-class seats. MaxJet flew 767s with 102 seats.
Lawrence Hunt, the chief executive of Silverjet, which flies all-business-class 767s from Newark to London Luton, told me today that Silverjet "should be profitable by March." London-based Silverjet is the only of the four all-business-class startups that also offers a non-transatlantic route, between London and Dubai. The other all-business-class start-up is l'Avion, which flies between Paris and Newark.
(In May, British Airways is expected to launch a new mini-airline -- being developed under the code name Project Lauren and said to be formally named "Open Skies" -- with mostly premium-class seats between Paris [or perhaps Brussels] and Kennedy [or perhaps Newark]. The official announcement is scheduled for Jan. 9.)
MaxJet's statement today about going belly-up did not say so, but Reuters reports that MaxJet "prepaid Eos Airlines for about 500 seats" to accommodate passengers it has stranded. I haven't been able to confirm that yet. I certainly wouldn't take it to the bank -- or bankruptcy court.
Meanwhile, here is the sad and sorry Christmas Eve statement from MaxJet:
"Dear Friends of MAXjet:
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.
Sincerely,
William D. Stockbridge
President and CEO
IF YOU HAVE STARTED YOUR TRAVEL… MAXjet is contacting customers with their new travel itineraries in priority order based on date of departure. Please contact MAXjet Customer Care at: US phone number: 1-866-837-9880 UK phone number: 44 (0)1279 216 478 Email: mailto:intransit@maxjet.com
Please have your contact information and either a confirmation number or flight date/number ready. 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.
IF YOU HAVE NOT YET BEGUN YOUR TRAVEL, BUT HAVE BOOKED TICKETS… Seek a refund directly from your point of purchase (credit card or travel agency). For further information, passengers who have not yet begun travel may contact: US phone number: 1-888-435-9629; UK phone number: 44 (0)1279 216 428 Email: mailto:%20info@maxjet.com Please have your contact information and either a confirmation number or flight date/number ready.
Investor Relations "
--end of MaxJet statement.
Incidentally, MaxJet said it had "contracted" with Eos, the all-business-class carrier that started up operations about the same time, to fly passengers awaiting a return flight to New York from London. Those passengers will be accommodated when seats are available on Eos, which stands to gain considerably from MaxJet leaving the New York-London Stansted market.
Keep in mind that a "contract" by a bankrupt company to secure services is a questionable proposition. Have a backup plan if you're one of those affected.
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MaxJet's statement today about going belly-up did not say so, but Reuters reports that MaxJet "prepaid Eos Airlines for about 500 seats" to accommodate passengers it has stranded. I haven't been able to confirm that yet. I certainly wouldn't take it to the bank -- or bankruptcy court.
Meanwhile, here is the sad and sorry Christmas Eve statement from MaxJet:
"Dear Friends of MAXjet:
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.
Sincerely,
William D. Stockbridge
President and CEO
IF YOU HAVE STARTED YOUR TRAVEL… MAXjet is contacting customers with their new travel itineraries in priority order based on date of departure. Please contact MAXjet Customer Care at: US phone number: 1-866-837-9880 UK phone number: 44 (0)1279 216 478 Email: mailto:intransit@maxjet.com
Please have your contact information and either a confirmation number or flight date/number ready. 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.
IF YOU HAVE NOT YET BEGUN YOUR TRAVEL, BUT HAVE BOOKED TICKETS… Seek a refund directly from your point of purchase (credit card or travel agency). For further information, passengers who have not yet begun travel may contact: US phone number: 1-888-435-9629; UK phone number: 44 (0)1279 216 428 Email: mailto:%20info@maxjet.com Please have your contact information and either a confirmation number or flight date/number ready.
Investor Relations "
--end of MaxJet statement.
Incidentally, MaxJet said it had "contracted" with Eos, the all-business-class carrier that started up operations about the same time, to fly passengers awaiting a return flight to New York from London. Those passengers will be accommodated when seats are available on Eos, which stands to gain considerably from MaxJet leaving the New York-London Stansted market.
Keep in mind that a "contract" by a bankrupt company to secure services is a questionable proposition. Have a backup plan if you're one of those affected.
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