| MAXjet to make announcement after share suspension |
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| Tuesday, 11 December 2007 | |
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Business-only transatlantic airline MAXjet is expected to issue a statement after it asked the London Stock Exchange to suspend trade in its shares on AIM on Friday.
The airline said that it had asked for share trading to be halted “with immediate effect pending clarification of its financial position”. MAXjet Airways that business continued “as normal”. The firm reported a systemwide load factor in November of 69 per cent, a year-over-year increase of 11 percentage points. Revenue passengers increased from 5,748 in November 2006 to 8,467 in November 2007, an increase of 47 per cent on a 24 per cent increase in available seats. Advance bookings remain strong Share in the firm dropped from 140 pence on flotation in June 2007 to almost half their value, at 73.5 pence upon suspension on Friday. The firm raised £48.5 million through its flotation, but is now thought to have run into liquidity problems. “We thank our customers for their loyalty. Our advance bookings remain strong and our flight performance has been stellar. We look forward to serving our customers during the busy Christmas season, in 2008 and beyond,” said Bill Stockbridge, MAXjet CEO and President on Monday. MAXjet (LSE:MAXJ) introduced low-fare all-business-class service between New York and London Stansted in November 2005. The airline introduced service from London Stansted to Las Vegas in November 2006 and Los Angeles in August 2007. Since launching the low-fare all-business class segment MAXjet has carried over 130,000 revenue passengers. It operates a fleet of five leased B767 extended range aircraft configured with up to 102 Business Class seats. Open Skies With a liberalised “Open Skies” aviation agreement taking effect between the United States and the member states of the European Community in March 2008, the MAXjet directors said they believed that the company is well positioned to capitalise on new market opportunities. MAXjet added that it intends to add services from London Stansted to the Middle East, Asia and Africa to complement its United States bound services. In October the company said that it planned to increase its services to New York, Las Vegas and Los Angeles through the introduction of a fifth aircraft to its fleet and the phased suspension of its Washington service. Competing business-only airlines Eos and Silverjet (LSE:SIL) recently also reported difficulties, not helped by rising fuel prices and a weak dollar. Related links |
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