April 27, 2008

Buh-bye: Eos Airline bankrupt, flies last flight today

Eos, the all-business class (and lower-cost) airline that flew between JFK and London's Stansted, is flying its final routes today.

"We will cease operations entirely after April 27, 2008," the company's website states today.

The company, which is not yet three years old, on Saturday filed for Chapter 11 bankruptcy, according to its news release (in pdf format.)

“Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome," Jack Williams, Eos’ CEO, says in the statement. "It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations."

In February, Eos announced it would start flying to Dubai as of July 6. And in March it was touting its new service from Newark to Stansted.

Its one-time competitor MaxJet, which ceased operations on Christmas Eve, was also flying discounted all-premium class planes between New York and Stansted.

But there are still a few premium-only airlines in the air. SilverJet , the low-fare business-class airline, goes from Newark to London's Luton Airport and on to Dubai.

L'Avion flies a low-fare business-class service between Newark and Paris' Orly Airport.

Coming soon: OpenSkies, the new premium-class British Airways spin-off, hopes to start service between New York's JFK and Paris’ Charles de Gaulle airports early this summer, the company's CEO told NewYorkology last month. Its retrofitted Boeing 757 will carry no more than 82 passengers in its business, premium and economy sections. The company plans to add a second Boeing 757 later this year and six more in 2009, according to an April 1 news release (in pdf format.)

Earlier: All-business airlines plan NYC expansions - NY Times
L'Avion starts 'low-cost, high-frills' to Paris on Dec. 27
Eos, MaxJet making biz- and first-class cheaper
Early numbers may suggest rough road for EOS, MaxJet
All biz-class MAXjet drops NYC-Stansted o.w.-fare to $679

April 27, 2008 9:42 AM in Arrivology

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