Eos business airline goes bust

Cheaperholidays report: US business-class airline Eos goes bust and has filed for Chapter 11 bankruptcy protection, it will cease operating flights by Monday.

The firm said it had “insufficient cash to continue operations” after failing to win an investment that would have sustained the firm until 2009.

Eos was launched two years ago, flying between New York’s JFK airport and the UK’s Stansted.

Its collapse follows the demise of rival Maxjet last December.

The entire airline industry has been battling surging fuel prices, competitive pressures and declining consumer spending, particularly in the US and UK.

‘Regrettable’

Eos will operate its final flights between London’s Stansted Airport and New York’s Kennedy Airport on Sunday.