NoVa-based business class airline abruptly grounded

December 24, 2007

MAXjet Airways, an all-business class airline based in Dulles, Va., said today it would file for bankruptcy - leaving jets on the tarmac and stranding passengers on Christmas Eve.

In October, the airline halted flights from London to Washington, D.C., according to the BBJ. Earlier this month, it asked for trading of its stock on the London Alternative Investment Market to be stopped. And today, it cited high fuel prices and the deteriorating credit market for its “drastic measure.”

An airline consultant told the AP that “while business class service can be very profitable to airlines, it’s also a very “thin” market,” [Robert] Mann said. Serving, typically, “40 to 70 seats per flight, depending on the route and aircraft.” Any loss of market share to a competitor can be devastating, particularly to an all business-class carrier like MAXjet that didn’t have revenue from economy passengers — or a robust route system — to fall back on.

Rival business class airlines Eos and Silverjet claimed Monday to be enjoying continued success in the business travel market.

JACKIE SAUTER, Multimedia Editor

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Posted by Jackie Sauter | Filed Under holidays, virginia 

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