Second All-Business NYC-London Airline Shuts Down; Bye-Bye Eos

In the fall of 2005, two new airlines began offering discounted, all-business class service linking New York's Kennedy airport with London's Stansted: MaxJet (which also included service between London and DC) and Eos Airlines.  With walk-up fares half what major airlines including British Airways and American Airlines were charging for business class, Eos and MaxJet caused the competition to drop prices sharply.  Instead of $13,000 for a walk-up fare on BA, Eos charged $6,500.  And as the last year or so, business class prices dropped as low as $2.000 round trip if you purchased your tickets in advance during sale periods.

That may be about to change.  Last December, Maxjet closed.  It wasn't as fancy as Eos, which offered 48 "suites" on Boeing 757s, and its closing should have strengthened Eos' chances of making a profit.  But apparently not.  This weekend, Eos shut down, filed for bankruptcy, and offered little hope that it will resume business despite the fact that the homepage on its web site says it had a "term sheet in hand for additional financing."

Passengers holding tickets for flights beyond today are advised to contact their credit card company or travel agent to seek refunds.  Those holding reward points in the airlines Club 48 will find their points worthless unless a bankruptcy court down the road awards some kind of compensation for unclaimed awards.  I think that's highly unlikely, but you may file a claim on this page on Eos' website.

So.  Willl the majors again raise their business class fares to stratospheric heights?  You can bet fares are being re-jiggered upwards right now.  Will American cease the JFK-Stansted flights it began because Eos was taking business away from its Kenendy-Heathrow route?  Probably, unless the airline decides it can make a profit continuing to offer reduced fares. But you can bet its ticket prices will rise, as well.