MaxJet Ceased Operations, Filed for Bankruptcy Protection

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.

MaxJet began operating in July 2005 offering all-premium, transatlantic service between New York and 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 London to directly compete with MaxJet, which likely contributed to its troubles.