Unable to launch iOS Simulator from Eclipse code. UnreachableBrowserException

Hi , I am getting below error while running simple appium code.
following are the capability settings-
@Before
public void setUp() throws Exception {

       DesiredCapabilities capabilities = new DesiredCapabilities(); 
       capabilities.setCapability("platformName", "ios");
       capabilities.setCapability("deviceName","iPhone 5");
      
       capabilities.setCapability("app", "full path of .app file");  
     
        driver = new RemoteWebDriver( new URL( "http://127.0.0.1:4723/wd/hub"), capabilities );

       ArrayList<Integer> values = new ArrayList<Integer>();  
    }  

I tried changing port and URL but no success. I was able to launch app on simulator with same setup and dont know why not now.
org.openqa.selenium.remote.UnreachableBrowserException: Could not start a new session. Possible causes are invalid address of the remote server or browser start-up failure.
Build info: version: ‘2.45.0’, revision: ‘32a636c’, time: ‘2015-03-05 22:01:35’
System info: host: ‘MachineName-Macintosh.local’, ip: ‘10.233.102.149’, os.name: ‘Mac OS X’, os.arch: ‘x86_64’, os.version: ‘10.10’, java.version: ‘1.6.0_65’
Driver info: driver.version: RemoteWebDriver
at org.openqa.selenium.remote.RemoteWebDriver.execute(RemoteWebDriver.java:593)
at org.openqa.selenium.remote.RemoteWebDriver.startSession(RemoteWebDriver.java:240)
at org.openqa.selenium.remote.RemoteWebDriver.(RemoteWebDriver.java:126)
at org.openqa.selenium.remote.RemoteWebDriver.(RemoteWebDriver.java:153)
at demoTest.DemoTest.setUp(DemoTest.java:33)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:597)
at org.junit.runners.model.FrameworkMethod$1.runReflectiveCall(FrameworkMethod.java:50)
at org.junit.internal.runners.model.ReflectiveCallable.run(ReflectiveCallable.java:12)
at org.junit.runners.model.FrameworkMethod.invokeExplosively(FrameworkMethod.java:47)
at org.junit.internal.runners.statements.RunBefores.evaluate(RunBefores.java:24)
at org.junit.internal.runners.statements.RunAfters.evaluate(RunAfters.java:27)
at org.junit.runners.ParentRunner.runLeaf(ParentRunner.java:325)
at org.junit.runners.BlockJUnit4ClassRunner.runChild(BlockJUnit4ClassRunner.java:78)
at org.junit.runners.BlockJUnit4ClassRunner.runChild(BlockJUnit4ClassRunner.java:57)
at org.junit.runners.ParentRunner$3.run(ParentRunner.java:290)
at org.junit.runners.ParentRunner$1.schedule(ParentRunner.java:71)
at org.junit.runners.ParentRunner.runChildren(ParentRunner.java:288)
at org.junit.runners.ParentRunner.access$000(ParentRunner.java:58)
at org.junit.runners.ParentRunner$2.evaluate(ParentRunner.java:268)
at org.junit.runners.ParentRunner.run(ParentRunner.java:363)
at org.eclipse.jdt.internal.junit4.runner.JUnit4TestReference.run(JUnit4TestReference.java:50)
at org.eclipse.jdt.internal.junit.runner.TestExecution.run(TestExecution.java:38)
at org.eclipse.jdt.internal.junit.runner.RemoteTestRunner.runTests(RemoteTestRunner.java:459)
at org.eclipse.jdt.internal.junit.runner.RemoteTestRunner.runTests(RemoteTestRunner.java:675)
at org.eclipse.jdt.internal.junit.runner.RemoteTestRunner.run(RemoteTestRunner.java:382)
at org.eclipse.jdt.internal.junit.runner.RemoteTestRunner.main(RemoteTestRunner.java:192)
Caused by: org.apache.http.conn.HttpHostConnectException: Connect to 127.0.0.1:4723 [/127.0.0.1] failed: Connection refused
at org.apache.http.impl.conn.HttpClientConnectionOperator.connect(HttpClientConnectionOperator.java:142)
at org.apache.http.impl.conn.PoolingHttpClientConnectionManager.connect(PoolingHttpClientConnectionManager.java:319)
at org.apache.http.impl.execchain.MainClientExec.establishRoute(MainClientExec.java:363)
at org.apache.http.impl.execchain.MainClientExec.execute(MainClientExec.java:219)
at org.apache.http.impl.execchain.ProtocolExec.execute(ProtocolExec.java:195)
at org.apache.http.impl.execchain.RetryExec.execute(RetryExec.java:86)
at org.apache.http.impl.execchain.RedirectExec.execute(RedirectExec.java:108)
at org.apache.http.impl.client.InternalHttpClient.doExecute(InternalHttpClient.java:184)
at org.apache.http.impl.client.CloseableHttpClient.execute(CloseableHttpClient.java:72)
at org.apache.http.impl.client.CloseableHttpClient.execute(CloseableHttpClient.java:57)
at org.openqa.selenium.remote.internal.ApacheHttpClient.fallBackExecute(ApacheHttpClient.java:126)
at org.openqa.selenium.remote.internal.ApacheHttpClient.execute(ApacheHttpClient.java:72)
at org.openqa.selenium.remote.HttpCommandExecutor.execute(HttpCommandExecutor.java:133)
at org.openqa.selenium.remote.RemoteWebDriver.execute(RemoteWebDriver.java:572)
… 28 more
Caused by: java.net.ConnectException: Connection refused
at java.net.PlainSocketImpl.socketConnect(Native Method)
at java.net.PlainSocketImpl.doConnect(PlainSocketImpl.java:382)
at java.net.PlainSocketImpl.connectToAddress(PlainSocketImpl.java:241)
at java.net.PlainSocketImpl.connect(PlainSocketImpl.java:228)
at java.net.SocksSocketImpl.connect(SocksSocketImpl.java:431)
at java.net.Socket.connect(Socket.java:527)
at org.apache.http.conn.socket.PlainConnectionSocketFactory.connectSocket(PlainConnectionSocketFactory.java:72)
at org.apache.http.impl.conn.HttpClientConnectionOperator.connect(HttpClientConnectionOperator.java:125)
… 41 more

Make sure you have the appium server started