Business class airline Eos has filed for Chapter 11 bankruptcy.

It is the second no-frills business only airline to fail within six months following the collapse of rival MaxJet.

The airline cancelled all its flights from New York to London on Sunday and is only operating selected flights over the weekend. All flights will be cancelled from today(Monday).

It announced that it had filed for a voluntary position under Chapter 11 of the US Bankruptcy Code on Saturday despite successfully negotiating terms for further funding.

Chief executive Jack Williams said the airline was “on the verge of success” with an investment almost secured to take the airline into profitability in 2009 but had been left with “insufficient cash” to continue current operations.

He 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 the 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 on closing on an investment that would have carried us to corporate responsibility in 2009, some issues arose that we could not overcome….That leaves us with insufficient cash on hand to continue operations.”

The majority of the airline’s staff will lose their jobs as a result of the collapse, the airline confirmed