Eos Airlines stops flying

Another week, another airline shuts down. This time, all-business-class carrier to Europe Eos abruptly stopped flying on Sunday after filing for bankruptcy protection on Saturday.

A deal that would have secured $50 million in financing fell through on Thursday, causing the airline to file for bankruptcy two days later. In a press release, Eos' CEO Jack Williams said, "It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations."

Eos has instructed passengers to contact their credit card companies or travel agents for information on refunds. Silverjet, one of Eos' competitors, will allow Eos passengers to book flights from Newark to London's Luton airport for the same price as their original Eos tickets. The offer is available through May 10 at 7 p.m. ET, and passengers must present electronic proof of purchase for their Eos flights. Call 877-359-7458 to book. British Airways and Continental are also offering assistance to Eos passengers.

One of Eos' main competitors in the all-business-class-to-Europe market, Maxjet, ceased flying in December 2007. At the time, airline industry experts questioned the viability of all-business-class airlines, according to the Associated Press. "The smaller carriers face stiff competition from deeper-pocketed large airlines that offer business-class service along similar routes. While business class service can be very profitable, it's also a very thin market, airline experts have said, noting that any loss of market share can be devastating to a carrier that only offers business class," the AP reported.