Ooops, there goes another one – Eos Airlines to shut down
A USA Today report says that Eos Airlines has become the latest airline to say it will be closing down, with the company filing for Chapter 11 bankruptcy and announcing it was ending its operations yesterday.
Eos had offered all-business-class service between London Stansted and New York JFK.
The BBC said over the weekend, “Eos will operate its final flights between London’s Stansted Airport and New York’s Kennedy Airport on Sunday, but its Sunday flights in the opposite direction have been cancelled.”
The Associated Press adds, “The New York-based company intends to eliminate most of its workforce.â€
CEO Jack Williams said in a statement that the ‘challenging economic and credit environment’ forced the company to file a voluntary petition for Chapter 11 bankruptcy.
The airline launched round-trip service for business travelers from New York to London in 2005.
The Wall Street Journal writes Eos become “The fourth U.S. carrier to go out of business (since March 31).
“With rising fuel prices, tight credit markets and the slowing economy are wreaking havoc on all U.S. carriers, smaller, less well-funded companies are proving unable to withstand the challenges.”
Aloha Air, ATA and Skybus are the other notable carriers to abruptly end operations during the past few weeks.
Another, Frontier, filed for bankruptcy but has not faced any operational disruptions.
The Wall Street Journal added that Eos had announced earlier this month that it “expected to receive $50 million in new capital from a current investor, ‘financing needed to take us to corporate profitability in 2009,’ the company said at the time.
But the company said Saturday it was unable to close on the financing, leaving it with insufficient cash to continue operating.”
Meanwhile, Forbes.com says Eos’ collapse, coupled with the December demise of all-business class carrier MAXjet, raises “questions about the viability of smaller transatlantic carriers who are fighting rising fuel costs while trying to win market share from much bigger rivals.”
Other niche airlines still offering all-business-class service on trans-Atlantic routes are French carrier L’Avion and Britain’s Silverjet.
A Report by the Mole from USA Today
John Alwyn-Jones
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
Qatar Airways offers flexible payment options for European travellers
TAP Air Portugal to operate 29 flights due to strike on December 11
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Airbnb eyes a loyalty program but details remain under wraps