Maxjet grounded

Puget Sound Business Journal (Seattle)

• Print Article
• Email Article
• Reprints
• RSS Feeds
• Add to Del.icio.us
• Digg This

Maxjet Airways Inc., which in July applied for U.S. approval to fly nonstop flights between Shanghai and Seattle, won't be flying anywhere anytime soon.

The Washington, D.C.-based carrier, facing financial losses because of rising fuel prices, has ceased operations and is filing for federal bankruptcy protection. The startup airline launched its first flights in late 2005.

In September, the U.S. Department of Transportation selected new routes to China, and Maxjet's proposal wasn't among those chosen.

"We knew we were the underdog in being awarded service to China. Our business model is right for China, but an airline with an older, traditional multi-class model was chosen," said Maxjet CEO Bill Stockbridge, in a September statement.

Maxjet's loss widened to $49.5 million in the first half of this year from $30.4 million a year earlier as it paid more for jet fuel and continued to buy more airplanes. Stockbridge said in a statement that "our efforts to raise additional capital have been unsuccessful."