Eos Airlines Halt Flights
Business class only Eos Airlines has gone out of business only a week before it was due to launch new flights from Stansted airport to New York Newark.
Eos, which operated flights between Stansted and New York JFK, was also planning to start new flights from Stansted to Dubai on 6th July. Earlier this month it said it hoped to secure an extra $50 million from an existing investor that would enable it to become profitable by 2009.
"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" says Eos CEO, Jack Williams.
Ten airlines have now run into financial difficulties in the last four months, including another business class only airline, MaxJet, which ceased operations at the end of last year.
"Simply the long standing effect of the credit crunch and the price of oil still continuing to rise means many airlines simply cannot maintain flying operations unless they make drastic price increases. Although we predicted several other airlines to come into the same financial difficulties there will sadly be others during this difficult credit crunch and high oil price period," comments Paul Mclean, director of International Passenger Protection (IPP), the largest supplier of default and insolvency insurance to the travel industry.
Another business class only airline, UK based Silverjet which operates flights from Luton airport to New York Newark and Dubai, is offering a limited number of seats on its New York route to Eos passengers for the same price as their Eos ticket.
Written by: Nick Purdom