MAXJ Maxjet

RNS Number:6256K
MAXjet Airways Inc.
24 December 2007

24 December 2007

                              MAXjet Airways, Inc
                          ("MAXjet" or "the Company")
                               Chapter 11 Filing


The Board of Directors of MAXjet, the United States domiciled all-Business Class
airline, regrets having to inform its shareholders, employees, customers and
suppliers that the Company has been affected simultaneously by a number of
material factors which have negatively impacted its financial position. These
principal factors are fuel price inflation, other operating cost increases,
competitive pressure and decline in consumer spending. In addition a substantial
deterioration in financial market confidence has precluded any further
fundraising.  As a result of these factors, the Board has no choice but to
inform that the Company cannot continue to operate. In a meeting on 23 December
2007, the Company's Board of Directors authorized a voluntary petition under
Chapter 11 of the U.S. Bankruptcy Code.

The Board determined that this action is in the best interest of the Company,
its employees, customers and suppliers. Filing for Chapter 11 protection will
enable the Company to conduct an orderly liquidation of assets and resolution of
claims.   In Chapter 11 the Company will be subject to the oversight and
supervision of the bankruptcy court and will be governed by its existing Board
of Directors.   The Company's current management is expected to remain in place
to oversee the sale and/or liquidation of all or part of the business and to
coordinate the analysis and resolution of claims.   Regrettably, the Board does
not currently believe that there is likely to be any value realised for
shareholders. Given this, the trading of the Company's shares on AIM will remain
suspended.

MAXjet flight operations have ceased including the suspension of all scheduled
and charter flights to and from London Stansted Airport.

"I sincerely apologize to our shareholders, employees, customers and suppliers,"
said William Stockbridge, CEO of MAXjet. "Our efforts to raise additional
capital have been unsuccessful.  Our management team and Directors vigorously
explored alternative courses but sadly determined that a bankruptcy filing would
best protect our customers and creditors. I recognize that discontinuing service
during the holiday season may create significant disruption for some passengers
and on behalf of the Company, I deeply regret any inconvenience caused."

MAXjet suspended trading of its stock on 7 December 2007 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.  However, the Company's Board of
Directors has now determined the proposed financing is unlikely to succeed in a
timely manner, and after careful consideration determined to file the voluntary
petition.

To look after its customers, the Company has:
          
     -    Contracted and pre-paid Eos Airlines for approximately 500 seats on
          Eos' scheduled all-Premium service to accommodate passengers awaiting 
          a return flight between New York and London. Passengers travelling 
          between London, Los Angeles and Las Vegas will be contacted regarding 
          their flight re-accommodations;

     -    Contracted and pre-paid for 450 hotel rooms in London, New York, Las
          Vegas and Los Angeles through early January 2008 for those whose 
          travel plans have been disrupted; and

     -    Prepared a motion with US Bankruptcy Court to seek authorization for
          additional funds that will provide additional hotel and airfare 
          accommodation to passengers.  The Company will work to schedule a 
          prompt emergency hearing of this motion before the U.S. Bankruptcy 
          Court.

Passengers are strongly encouraged to contact MAXjet directly.  Email addresses
and telephone contact numbers are provided at the end of this release.

Financial Background

The current liquidity issues have arisen since the Company's admission to AIM in
June 2007 as a result of the combination of a number of factors that have
negatively impacted revenues and unexpectedly increased the costs of operations.

Rising fuel costs have had a significant impact on sector economics.  Fuel costs
in the first quarter of 2007 averaged $1.91 per gallon.  Fuel costs have since
risen to $2.85 per gallon as of 19 December 2007.  The average fuel price for
the 2007 financial year is expected to be $2.27 per gallon.

The late delivery of the airline's fourth and fifth aircraft (including the cost
of rebooking impacted passengers in premium cabins on other airlines or on
short-term charters) negatively impacted 2007 cash flows.  Other unforeseen
costs, including increased crew salaries and travel costs, airport services and
catering, and unscheduled maintenance further contributed to the Company's
deteriorating financial position.

Competitive pressures have also increased. This has been driven both by new
entrants in the all-Business Class carrier sub-sector and by incumbent
multi-cabin airlines.  Both have increased capacity and have been competing
strongly on price for traffic to fill capacity, particularly in New York.  In
addition, general economic conditions have changed. The Directors believe that
exchange rate trends, declining consumer confidence and general business
uncertainty have resulted in a decline in the quality of advance bookings.
Specifically, the Company's revenues were significantly and negatively impacted
by the cancellation of the Washington route in October as a result of
unsustainably low load factors and passenger yields. During November and
December, the Los Angeles route also performed below expectations, despite a
positive start in late August, September and October.

Of the factors listed above, no single factor can be identified as having caused
the majority of the difficulties. The Company's bankruptcy filing is required as
a result of all of these factors.

From early November 2007 the Company has been seeking to secure additional
working and growth capital for 2008.  The Company's Chairman was willing to
participate in the financing round.  With unfavourable market conditions,
coupled with rising fuel costs, increased competition, consumer confidence and
other macroeconomic factors, the financing round was unsuccessful. The Directors
therefore have authorized bankruptcy protection to preserve and maximize the
value of the business for the benefit of the Company's creditors.

INSTRUCTIONS FOR BOOKED PASSENGERS

Passengers in the midst of a journey are directed to contact MAXjet customer
care at:

1-866-837-9880 in the United States
44 (0)12 7921 6478 in the United Kingdom
Email:   intransit@maxjet.com

Customers should provide contact information and either a confirmation number or
flight date/number in their email. MAXjet is contacting customers with their new
travel itineraries in priority order based on date of departure. As an
alternative to the hotel rooms and seats on other airlines described above,
customers may seek refunds of any unused segments of tickets from the point of
purchase (i.e. credit card or travel agency).

In addition, MAXjet staff will be available at each airport to assist affected
passengers.

Passengers who have not yet begun travel are directed to contact MAXjet customer
care at:

1-888-435-9629 in the United States
44 (0)12 7921 6428 in the United Kingdom
Email:   info@maxjet.com

Customers should provide contact information and either a confirmation number or
flight date/number in their email.  Customers should seek refunds of unused
segments of tickets from the point of purchase (i.e. credit card or travel
agency).


SUMMARY OF CONTACT INFORMATION

Passenger Contact Information

Passengers in the midst of travel   US: 866-837-9880; UK: +44 (0)12 7921 6478
                                    MAXjet is contacting customers with their 
                                    new travel itineraries in priority order 
                                    based on date of departure.
                                    intransit@maxjet.com

Passengers who have not yet         US: 888-435-9629; UK: +44 (0)12 7921 6428
begun travel                        Please contact your point of  purchase 
                                    (credit card or travel agency) for a refund.               
                                    info@maxjet.com

Media Contact Information
                         
Consumer Media                      MAXjet Airways Inc.
                                    Media Relations
                                    media@maxjet.com
                                    +1 703-574-6474


Financial Media                     Financial Dynamics
                                    MAXjet Media Relations
                                    +44 (0)20 7831 3113

Vendor Contact Information

Suppliers and Business Partners     MAXjet Airways Inc.
                                    Vendor Relations
                                    vendorinfo@maxjet.com
                                    +1 703-574-6466

Shareholder Information

Shareholders                        MAXjet Airways Inc.
                                    Legal Department
                                    shareholders@maxjet.com
                                    +1 703-574-6473

Please refer to the MAXjet Investor Relations site for the latest filings
regarding the Chapter 11 process once filed.

This announcement includes statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements can be identified
by the use of forward-looking terminology, including the terms "believes",
"estimates", "plans", "projects", "anticipates", "expects", "intends", "may",
"will", or "should" or, in each case, their negative or other variations or
comparable terminology. These forward-looking statements include matters that
are not historical facts and include statements regarding MAXjet's intentions,
beliefs or targets.

By their nature, forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. A number of factors could cause
actual results and developments to differ materially from those expressed or
implied by the forward-looking statements. Forward-looking statements may and
often do differ materially from actual results.  Any forward-looking statements
in this announcement reflect MAXjet's view with respect to future events as at
the date of this announcement and are subject to risks relating to future events
and other risks, uncertainties and assumptions relating to MAXjet's operations,
results of operations and growth strategy.  Save as required by law or any
applicable rule or regulation, MAXjet undertakes no obligation publicly to
release the results of any revisions to any forward-looking statements in this
announcement that may occur due to any change in its expectations or to reflect
events or circumstances after the date of this announcement.



                      This information is provided by RNS
            The company news service from the London Stock Exchange
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