Robin Pagnamenta
We've made some changes
to The Sunday Times
Business airline Maxjet was today forced to file for Chapter 11 bankruptcy protection from creditors.
The announcement came after last-ditch talks over the weekend to arrange a financial rescue package collapsed.
In a letter to customers, Maxjet’s president and chief executive officer William Stockley said the company had been forced “to take this drastic measure” by a combination of high “fuel prices and the resulting impact on the credit climate for airlines”.
“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,” wrote Mr Stockley.
Maxjet was launched in 2005 and operated 5 Boeing 767 aircraft flying between London Stansted, New York, Los Angeles and Las Vegas.
But the group said its board had been left with no option but to authorise a voluntary petition under Chapter 11 of the US Bankruptcy Code after realising it could no longer continue to operate.
One aviation industry source said Maxjet had been flying with one aircraft out of service and only 61 per cent of its seats occupied - well below the 70 per cent or so load factor required to break even.
In recent months, the company has been hit by a combination of factors including increased competition from rivals such as BA and Virgin - which dropped their business class fares earlier this year - and a decline in consumer spending linked to the global credit crunch, particularly among Maxjet’s key customers: big banks and other financial institutions.
Trading in shares of Maxjet was suspended two-and-a-half weeks ago.
On December 7, the company said that it had requested the suspension "pending clarification of its financial position".
A spokesman for key rival Silverjet insisted the problems at Maxjet were specific to the company and not to business-class airlines as a whole.
He said Silverjet had a different business model, focused on using its aircraft more frequently and to a smaller network of destinations.
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Flew out to Las Vegas on 20th December, sat on the aircraft for 2 hours before takeoff, pilot said this was due to route clearance, refuelled at Gander in Canada, Captain said this was due to strong headwinds. This was more likely a cost cutting exercise (fly with half the fuel use less fuel). So knew things were not looking good. Arrived over 4 hours late so missed connecting flight. Found out by chance they had gone bankrupt, Maxjet didn't bother getting in touch. Tried to contact them on many occasions. Continental Airlines came to our rescue £50.00 each from Las Vegas to Bristol on standby (indirect). My advice to anyone on standby out of Las Vegas is be flexible the flights to other connecting Cities are heavily booked and there are many others on standby full fare paying passengers are 1st priority followed by crew then other airline workers then Maxjet customers. We were told we were bottom of the standby pecking order. But Hey a big Thank You to Continental airlines.
Chay, Leicester, England
We were Maxjet customers due to return to London on 30th December. We contacted Maxjet Customer Services number given on the web-site on December 24th but no answer and eventually were ytransferred to "Reservation" who would only take our contact details. We then rang every day for 5 days, but no answer. Sometimes the calls were transferred again to "Reservatons" who again would only take our number.
Well, the day berofre we were due to fly, customer services still had not contacted us. We rang Eos and they confrimed we were not on their list. Eos also advised that they would not be flying for the following 2 days, so early January departure at the earliest.
Picked up the phone, rang SilverJet and they came to our rescue like a knight in shining armour !!!
If you are in trouble with Maxjet, I recommend you do the same. I am now sitting comfortably at home the following day in the UK
Gary, Doncaster, UK
Having booked flights with Maxjet for the 2nd Jan to New york and 14th Jan from Las Vegas to home over 4months ago I am disgusted that on Boxing day only by chance did I notice that they had ceased flyng and to announce on Christmas Eve is cruel as we could not get through on their so called help number. Our Tavel Agent also when told had no idea this had happened, how many people will turn up at Stansted to find there is no Maxjet. Why is there no governing body that can stop this sort of thing happening, and why were passengers no informed. I also noticed that they have filed a chapter 11 which means they can start trading again, I hope that is after they have given me my money back.
Mrs P Harrison, Lincoln, Lincs
As someone who has booked flights for there 25th Anniversary with Maxjet next October I am obviously disappointed. But having actually wrote to there PR dept, to say they were virtually unkown to anybody outside London and they were ignoring a huge market elsewhere in the country, there continued refusal (incompetence) to see this opportunity leaves me unsurprised they have now gone to the wall. Hopefully, Silverjet and EOS won't continue to keep making the same mistake.
Steve Evans, wolverhampton,
To anyone who works in the airline business it is stunningly obvious that these niche carriers will not succeed on premium traffic only model. If there is one thing airline analysis will tell you it is you need depth and putting all your eggs in one basket will inevitably lead to disaster as the basket gains a hole.
John, HK,
I was in talks wit Maxjet regarding redesigning their website to a much nicer and professional site but they didnt feel that £5000 was worth it over 2 years ago. They had no idea what was important and what was not to prospective customers. Do companies not realise that if you are selling a high-end product you need to showcase your featured through a professional looking website?
Don Jacobs, London, UK
Personally i think it's all for the best. Maxjet were setting their sights too high before they even started like learning to run before they could even walk. I tend to disagree with the poor customer service on the Stansted side of the pond as a team member on maxjet i worked myself ill trying to please people on a pittance of pay and now i face being made redundant right after christmas and new years. Lets hope it's all a fresh start and no-one else falls under this stress in the aviation industry!
Kylie, Stansted, UK
A great shame but they made a cardinal error in not beefing up their pr and marketing and discounting instead Many people had never heard of them The crew were always charming and delightful and the service was exceptional Part of the fault was poor and remote management...as always: This airline could have flown at capacity but the eye was taken off the ball
cherry, london, uk
Good ridance
Service for over paid executives with very high carben footprint .
From now on they will have to slum it with the rest of the first class
stanley, Haifa,
i am left stranded here in london hoping i can get home next week with a maxjet ticket.
Thanks for taking my ticket at jfk 2 days ago knowing that i would not be able to get back. I think you have managed to one up screwdge.
ah, new york, usa
I guess half the fun for people flying business is watching the poor sould having to walk past them to economy... maybe that is why they went bankrupt...
nir, jerusalem,
That is such a bloody shame. One less Business Class airline with which to beat BA over the head.
Many people I know had bad experiences with Maxjet over poor customer service and delayed departures (the 767's were not the most reliable) , but having flown with them (and just about everybodies everything else), across the pond, I found them to be very, very good value for money. In fact, I work at Stansted and looked up today as the morning flight to wherever passed overhead, even then remembering with fondness the plane that sidestepped the nausea that is Heathrow when going transatlantic.
Steve, Cambridge,