Eos Airlines, the all-business class carrier operating between London Stansted and New York JFK, has gone bankrupt.
The US-based airline ceased operations on yesterday (April 27) after filing for bankruptcy in the US Bankruptcy Court in the Southern District of New York on Saturday (April 26).
Most of its 450 employees will lose their jobs.
The decision comes just a week after the loss-making carrier said it was hoping to receive a $50m cash injection from a "current investor."
When the investment failed to materialise, the company announced it did not have enough money to continue.
Jack Williams, Eos' ceo, said: "After overcoming today's extremely challenging
economic and credit environment to negotiate terms for a round of financing, it is regrettable that we were forced to take this action.
"We had been clear since closing on our last round of financing that we would need additional capital.
"As difficult as it is to raise funds in the current environment, investors believe in our business model and we were on the verge of success.
"Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome.
"In hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations.
"There are times in business when even though you execute your business plan and even though your employees do their jobs beautifully, external forces prevent you from controlling your own destiny."
The collapse of Eos follows the demise of a rival all-business class carrier MAXjet which folded last December.
It leaves the all-business class market to a UK-owned carrier Silverjet which operates out of Luton, L'Avion which runs an all business class services between Paris and New York and Lufthansa which runs all-business transatlantic services out of Dusseldorf and Munich.
Eos began flying in 2005 between Stansted and JFK in October 2005.
Silverjet, which has yet to move into profit, has seen its share price plummet over the past year. It is also in talks with potential investors.