(CNN) -- Eos Airlines, the all business-class carrier, has declared bankruptcy and stopped operations Sunday.
The New York-based airline reconfigured 220-seater Boeing 757s to 48 seats that could extend into fully flat beds. The seats also allowed passengers -- or "guests" as they airline prefered to describe them -- to sit face-to-face to dine or hold business meetings.
The tickets carried a hefty price tag -- up to $9,000 roundtrip from New York to London -- but the luxuries were aimed toward more discriminating business travelers.
The privately-held airline, in a news release Sunday, said it had secured additional financing. But "some issues arose that prevented the parties from moving forward," it said. The airline immediately began the process of eliminating the positions of most of its employees.
"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," Eos CEO Jack Williams said in a statement.
The airline becomes the latest in a number of small carriers that have gone out of business in recent month. Analysts blame the high cost of fuel, a slowing economy and a credit crunch.
Other carriers that have declared bankruptcy recently include Skybus and ATA airlines.
Eos asked passengers to contact their credit card companies or travel agents to find out how to obtain refunds for unused tickets. It said frequent-flier program participants will not be able to redeem their points. Any value related to membership will be determined by the bankruptcy court. E-mail to a friend