Maxjet
 

Maxjet share trading halted
By Kevin Done, Aerospace Correspondent
Friday Dec 7 2007 15:40

Trading in the shares of Maxjet Airways, one of the new breed of all-business class long-haul airlines, was suspended on Friday in London, as the US group struggled to put together a financial rescue package.
The airline, which started flying transatlantic services in November 2005 between London Stansted and New York JFK airports, raised net proceeds of £47.3m in an initial public offering in June, becoming the second all-business airline after UK rival Silverjet to list on London's alternative investment market.

It has faced mounting losses in the face of surging fuel prices and lower than expected fare yields. Higher maintenance costs for its ageing fleet of Boeing 767 aircraft have also depressed financial performance.
After being launched at 138p a share, the Maxjet share price rose briefly to a peak of 140p, but it has declined steeply in recent months, falling to a low of 73½p before trading was halted on Friday. Maxjet said it had requested the suspension "with immediate effect pending clarification of its financial position".

In an attempt to shore up confidence it issued a second statement last night "to confirm to its employees, customers and suppliers that business continues to function as normal".

Maxjet services operated from Stansted on Friday to both New York and Los Angeles.

As senior executives criss-crossed the North Atlantic to try to secure financial backing - an effort made more difficult by deteriorating conditions in world financial markets - the group said that an announcement about the company's financial position would be made "as soon as ­possible".

Maxjet had losses of $31.9m in the first six months of the year as it was affected by higher than expected costs from aircraft maintenance and rising fuel prices, while it expanded its transatlantic operations.
It is one of a group of four carriers - including Eos of the US, the UK's Silverjet and L'Avion in Paris - launched in the past two-and-a-half years with all-business class services in an attempt to challenge the legacy carriers such as British Airways, American Airlines, Air France and Delta Air Lines (NYSE:DAL) on long-haul routes out of Europe and the US.
The airline made a net loss of $79m in 2006, its first full year of operations, on a turnover of $41.1m.
http://us.ft.com/ftgateway/images/blank.gif

Anybody got an interview with these guys? You might want to take note.

Good luck to all the employees. I hope that the company can right itself. Hang in there guys! Tom

NOT Good!
 

Unfortunately, this appears to be the beginning of a company on life-support. Been there, done that, got (3) t-shirts.

Make sure you get those resumes out guys, just in case.

Best of luck.

Was called for an interview however was advised of financial troubles by inside source. Also form what I was told, they have established a "B" fund for new hires. Too bad, i wanted to go there but happy I chose otherwise and stayed at regional for now as Capt. Good luck guys, I know quite a few there and there all good people. hop they make it.

Best of luck to all at MaxJet. You guys got me to STN many a night in the Summer of 2006 during my stint at Atlas. :)

EOS can't be too far behind!

Do you know something about EOS that others at EOS don't know about?

EOS just got an influx of investment capital, and has enough cash to fly 2-3 more years. Plus, they're growing by 2-3 jets.

New routes too. Paris and Zurich. They plan to start operating from EWR as well.

And Maxjet was planning to do some new routes also. EOS, Max, and many of the upstarts will be out of business with oil at the current and even lower prices. They just don't have the fleet and seats to cover their cost. Not bashing. Just reality.

I think you are right. I have a friend there and it does not look good.

If anyone is interested Gemini is running new hire classes through November. Both MDs and 10s.......

One more thing....

http://www.ft.com/cms/s/0/bfefe734-b...0779fd2ac.html

I hate seein' this kind of ****.

Good luck you [Maxjet] guys......

as of today maxjet is done. buddy who is in london got a call.email telling him to get on the next flight back to us. doh!

To the front line workers… and I mean all crewmembers MAXjet… all of you are superlative and have demonstrated the highest level of professionalism, and dedication to your passengers, to your company, and to each other. It’s an ignominy the pinheads neglected to give you proper respect up to and including today. As we speak the crew is on the aircraft waiting for other crews, who were staying at the Radisson Hotel in STN, to arrive at the aircraft which will be flown back to the states.

To those front line employees of MAXjet… may you find comfort, support, strength from your loved ones. To these people… good luck to one and all.

To the cowardice classless dolts in management of MAXjet… may your eggnog curdle… after you drink it of course… so your stomachs are as sour as your loyal employees…

My condolences, MAXJet employees. Ya'll be in my thoughts, good luck.

MAXjet Airways Files For Chapter 11 Bankruptcy

DOW JONES NEWSWIRES
December 24, 2007 8:17 a.m.

By Marietta Cauchi
Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--MAXjet Airways PLC (MAXJ.LN) said Monday it has filed for Chapter 11 Bankruptcy, blaming rising fuel costs and an increase in competition for business-class travelers for its inability to raise necessary funding.

The transatlantic business-class only airline listed just six months ago on AIM, London's alternative market.

The company said it had been trying to secure additional funding since early November but without success.

"With unfavorable market conditions, coupled with rising fuel costs, increased competition, consumer confidence and other macroeconomic factors, the financing round was unsuccessful," the company said in its statement.

"The directors, therefore, have authorized bankruptcy protection to preserve and maximize the value of the business for the benefit of the Company's creditors," it added.

MAXjet suspended trading of its stock Dec. 7, as a result of an inability to clarify its financial position. At that time, the company was in advanced discussions on a financing round for working capital and growth in 2008 that it expected to close before year-end.

The company said that the shareholders are unlikely to receive any value following the bankruptcy and shares will remain suspended.

The airline's shares last traded at 73.5 pence having reached a high of 131.5 pence just following flotation in June.

In a later statement, the company said that its non-executive chairman, Ken Woolley, as well as non-executive directors Paul Kehoe and Roger Flynn had resigned with immediate effect.

"After a vigorous period of assisting the management team to find alternative financing means, Kehoe and Flynn are resigning as the company no longer requires non-executive directors with U.K. public-market expertise," the company said.

The company added that Woolley was resigning because of potential conflicts as a creditor of the company under the Chapter 11 process.

U.S.-based MAXjet, which started operations in late 2005, operates flights from London's Stansted Airport to New York, Los Angeles and Las Vegas.

The U.S. incorporated company, based in Dulles, Virginia, listed on AIM to avoid the U.S.' complex and costly listing requirements. It raised around GBP50 million on its IPO.

Business-class only airlines face competition from mainstream carriers as well as the increasing number of players in the specialist sector, experts say.

MAXjet competes with rival premium-only carriers Eos Airlines of the U.S. and U.K.-based Silverjet PLC (SIL.LN).

Airline industry analysts have warned that premium-class only carriers like MAXjet may get hit by an economic slowdown as companies force more staff to travel coach class. High fuel costs are also hitting the earnings of all carriers.

Although MAXjet may beat them on price, established carriers like Virgin Atlantic Airways Ltd. and British Airways PLC (BAY.LN) offer travelers many more flights a week and have more extensive airport lounges.

MAXjet also had problems specific to the company, with the late delivery of its fourth and fifth aircraft meaning that the company had to rebook passengers in premium cabins with other carriers.

http://online.wsj.com/article/BT-CO-...2.html?mod=air

-----------------------------------------------------------------

A real shame.

from the Maxjet website:

IMPORTANT UPDATE FROM MAXJET
Information below regarding those who have booked travel

Dear Friends of MAXjet:

It is with deep regret that I must inform you that MAXjet filed Chapter 11 bankruptcy on 24 December 2007. With today’s fuel prices and the resulting impact on the credit climate for airlines, we are forced to take this drastic measure. Our top priority is to assist our customers, particularly those who already have begun their travel with us, in securing alternative flight accommodations.

MAXjet has contracted with Eos Airlines for seats on Eos’ scheduled all-Premium service to accommodate passengers awaiting a return flight between New York and London. Passengers needing return travel between London, Los Angeles and Las Vegas will be contacted regarding their flight re-accommodations. Any customers who choose to make flight accommodations directly should seek a refund from their point of purchase (credit card or travel agency) for the unused leg of their journey.

We have also secured hotel rooms in London, New York, Las Vegas and Los Angeles through early January 2008 which we will provide to affected passengers whose travel plans have been disrupted.

On behalf of the entire MAXjet family, we extend our apologies to you for the inconvenience. 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 in 2005.


Sincerely,

William D. Stockbridge
President and CEO

so this last letter form the CEO souns like they have ceased operations????even if the company still exist they are no longer flying????

I hope all the pilots find better jobs.

Many friends of mine there from a previous airline, ironically, it ended in similier fashion. I wish everyone the best there and hope future jobs are near.

Good Luck to the Maxjet folks, I wish you all the best.

Just curious - what did the cowardice classless dolts in management of MAXjet do to make you so upset?

How about shutting down on Christmas Eve without giving notice to employees?


At least Independence Air had the dignity to give employees and customers a weeks notice before shutting down, and they waited until after the holidays.

Whose butt do your have your nose up? Do you need a box of tissues to wipe the brown spot off your nose? If you play your cards right MAXjet will hire you... who knows... your question makes you D/O material.

The writing had been on the wall awhile at MaxJet, unfortunately.

Too many problems, not enough solutions.

Good luck to all employees, great people and good times. MAXjet was fun after 28 years at the Big D.
Besides the cost of fuel spiking, I think the choice of aircraft and the maint. issues that resulted were the biggest problem. As one of the orginal pilots, I know the FAA certification process also contributed. It cost so much and took so long. Then we had management changes every 6 months or so which didn't help.
We could get lots of people to try us but we disappointed them with canx. and late departures.

First off - to those of you affected by this airline shutdown, my condolences - having been through it myself with Midway, it sucks.

captjns, Wow, another thoughtful, well reasoned response...hang on, I will get my five year old to translate for me...do you think the "cowardice management" wanted to go out of business any more than the rest of the employees? Do you think that somehow there was an evil conspiracy?

Yea, it sucks huge that they went out of business on Christmas Eve. Maybe they thought they could weather the holidays, make it through to the new year? Who knows?

Crying wolf every single time something bad happens, and blaming the greedy and "cowardice" airline management for EVERY single bad thing that happens is no more valid than blaming Bush for every hurricane and tornado that happens. It makes this forum less an exercise in intelligent thought provoking debate and more about predictably blaming management for everything from the high price of fuel to turbulence.

Yes, management sucks. So do whiny pilots.

Now to bring the predictability full circle, someone, PLEASE, suggest that I am managment, drinking the Koolaid, have SJS, or have my nose up the CP's arse (whoops, that one was already used.)

Have your kid break out the crayons to illustrate the magitude of the situation.

By the Einstein... pilots and F/As were never consulted by management regarding decisions.

Not only the employees but family members too were affected by the sudden halt of operations. Did you know that crewmembers had family members either traveling to or from the UK on holiday at the companion pass rates. Now these innocents are stranded from home worring about how they will afford a ticket back home across the Atlantic.

Management had a duty and responsibility to their employees to make advance arrangements. Afterall... Independence had the courtesy to let their employees know they werer going to cease operations. I beleive Midway extended the same courtesy too.

Think for a second... do you think for one minute that management woke up on Sunday morning and decided to halt operations on the 24th? Ask your five year old child to draw the answer on a piece of paper.

Yeah... whiny crwemembers... come up with a more original response ace.

I'm a former Midway guy and there were no considerations at all...I received a call at 1153pm saying they were filing at midnight and that I would be contacted as to how to pick up my stuff...they held my flight bag hostage until I gave them my id badge...they changed all the locks over night and reissued new id's on the spot to the chosen ones that were allowed to remain with the sinking ship. Let's not forget, they did NOT lay off in seniority order, they did so by aircraft type, a very nice screwjob from ALPA and our MEC...but I digress.

Sorry you lost your job. I know how you feel. I agree the fuel prices and Mx reliability were a problem; can't stay in business if that keeps happening.

What was your opinion of the 'Tims'? I heard they were in way over their heads.

I will ask my kids to help me with the "magitude" of the situation - when you are patronizing someone, you should at least spell check - and "by the Einstein", Midway did not give me any notice either - they just closed the doors.

Maybe when you are running a business like an airline, you don't broadcast two weeks in advance that you might be shutting down - that tends to discourage future ticket sales (not many people want to buy tickets on a distressed airline that may or may not be around when it comes time for their trip).

Maybe they were trying to work a deal for last-minute financing and it fell through...do you know for a fact that was not the case? Right, wrong, or indifferent, they made a business decision that was likely not something anyone wanted to do. I don't like it, but I understand it.

And I agree - I think it sucks that non-rev's get stuck traveling when an airline shuts down. And I know how it happens, first hand.

Anyway, thanks for the thoughtful, intelligent debate, "slick".