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Pet Airways — viewed as salvation for those who hoped to avoid their dogs traveling, luggage-like, in cargo holds — has hit some turbulence.

Created in 2009 by a California real estate developer, the airline in recent months has canceled flights, leaving dogs and cats stranded and their owners inconvenienced and angry, the New York Times reported Saturday.

Pet Airways appears to be suffering a fate similar to its counterparts that cater to human travelers, the Times article said:

“Dog and cat owners are angry about canceled flights. Travel sites are abuzz with complaints, including customers who claim they have not received refunds for paid-for flights. And the company is burning through cash at a rapid rate.”

Alysa Binder, the co-founder of Pet Airways, acknowledged in an e-mail to theTimes that the airline has had some problems procuring planes from contractors and needed to cancel “some flights during the holidays and into the new year.”

“We are a very new company that is pioneering, just as FedEx pioneered the overnight packaging business,” Binder told the Times. “We have ups and downs, but we are keeping our eyes on the long-term goal of providing a safe and comfortable transportation option for the pets.”

The company, which says it has flown more than 7,000 cats and dogs, is still taking reservations, according to its website.

Pet Airways offers service to nine cities. Flights run from about $100 to more than $1,000 each way, and roughly 40 pets can sit in crates in the main cabin (the airline carries pets only), monitored during the trip by a  pet attendant.

The airline was a welcome alternative to the major airlines, some of which ban pets in the cabin entirely. Most typically store animals in the plane’s cargo hold, where temperatures can vary wildly and have contributed to deaths. According to the Department of Transportation, 122 dogs died in cargo holds on U.S. airlines between May 2005 and July 2010.

Records indicate Pet Airways had no flights between Dec. 16 and Jan. 16, and it is unclear if it has had any flights since then, according to the Times.

“We are working toward being in the air as soon as we can be assured that the planes are ready for our use,” Binder said.  

In a recent regulatory report, the company said it did “not currently have sufficient cash on hand to meet our financing needs … Our auditors have raised substantial doubt about our ability to continue as a going concern.”

The pet friendliest airline? It’s not one you can travel on.

But according to Petfinder.com, Pet Airways is where your dog can expect the best service.

Petfinder released its annual review of pet-friendly airlines this week, outlining the best options for traveling in-cabin with animal companions. (Petfinder advises against shipping your pet in cargo holds.)

Here’s which airlines came out on top in the various categories.

Most Pet-Friendly Overall: Pet Airways. Dedicated to providing a superior travel experience for animal passengers, the first-ever pet-only airline tops the list for this category due to their outstanding policies and first-class treatment of pets.

Best Amenities for Pets (and Pet Parents): JetBlue. For the second year in a row, JetBlue’s superior JetPaws program landed the airline in top place for the pet-friendly amenities category. The airline provides travelers with a pet carrier baggage tag, a travel “petiquette” guide, 300 TrueBlue points each way, and a comprehensive e-booklet with pet-friendly hotels, restaurants, parks and animal hospitals in some of JetBlue’s major cities.

Best for Transporting Pet Variety: Frontier Airlines. Frontier allows the most diverse variety of pets in cabin, including domesticated dogs, cats, rabbits, guinea pigs, hamsters and small household birds.

Best for Budget-Conscious Consumers: WestJet. Included in Petfinder.com’s review for the first time, WestJet tops this category allowing small dogs, cats, rabbits and birds to travel for $50 each way in-cabin. Coming in a close second, AirTran Airways allows domesticated dogs, cats and birds to fly in cabin for $69 each way.

Best for Flying Multiple Pets in Cabin: Frontier Airlines. Frontier allows up to 10 pet containers on each flight, though only one per human.

Best for Big Furry Friends: Pet Airways. Pet Airways can accommodate some of the biggest pups in town, with the maximum height allowance being 34 inches.

“As the proud parent of a huge pet family, I know how important it is to find a way for your pets to travel safely and comfortably with you, whether across the country or across the state,” said Betsy Banks Saul, the co-founder of Petfinder.com.

“All too often we hear stories of pets dying or getting injured while traveling in a plane’s cargo. We feel strongly at Petfinder.com that you should only travel with your pet in the cabin with you when flying, which is why we continue to review and promote the pet policies of airlines each year.”

 Pet Airways — the animal-only airline we told you about last month — has added Baltimore to the list of cities it will serve.

The flights, which will start in July, will travel to Los Angeles, Denver, Chicago and New York.

Pets will fly in kennel crates in the main cabin of the aircraft, watched over by a flight attendant, and tickets will start at $149 each way.

For a list of the airports served, click here.

(Photos: Petairways.com)

A Florida company has announced plans to start the nation’s first pets-only airline, allowing dogs and cats to travel in the cabin of its commuter planes.

Pet Airways, of Delray Beach, said Thursday it will begin operating weekly flights July 14 between New York, Washington D.C., Chicago, Denver and Los Angeles.

The airline will use commuter planes operated by Suburban Airlines and the average fare will be about $250 each way, said Alysa Binder, founder and executive vice president.

There are tentative plans to expand to Fort Lauderdale Executive Airport and other major cities by the end of the year, according to the South Florida Sun-Sentinel.

The start-up of Pet Airways comes as major commercial airlines have increased their pet travel fees and tightened restrictions to discourage pets flying in cabins. Pets flying Pet Airways will not travel in the cargo hold.

“For us, it’s all about the safety and the comfort of the pets,” Binder said.

Pet Airways “pawsengers” – as Binder calls them – will fly in a 19-seat turbo-prop passenger plane, the Beech 1900. The seats will be removed and planes will be fully-lit and climate-controlled. The airline will have pet check-in lounges and a Web site where customers can book reservations and track their pet’s travel progress.