London-NYC Exec Airline Eos Files Chapter 11

High costs, sagging economy put end to another business class carrier
By Jim O'Neill,  Newser User
Posted Apr 28, 2008 6:06 AM CDT
An Eos Airlines jet sits on the tarmac at Stanstead Airport in England. The airline says it has filed for Chapter 11 bankruptcy.   (AP Photo/ EOS Airlines, HO)

(Newser) – Business-class only Eos, struggling with rising fuel prices and unable to land a $50 million cash infusion to keep it aloft, filed for Chapter 11 bankruptcy protection last night, reports the Times of London. The airline, which offered business travelers cheap, high-quality flights between London and New York, follows fellow premium carrier Maxjet into bankruptcy.

Eos, which began service in 2005, lost $37 million through September on revenue of $53 million. Maxjet closed in December. Experts say two other budget-first class airlines, Silverjet and L’Avion, also are struggling as demand for their premium service declines and operating costs rise. Eos carried just 48 passengers on its flight and featured seats that opened flat into beds.