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7LBAC111
Topic Author
Posts: 2427
Joined: Sun Jul 18, 2004 9:17 am

EOS Claims Loads At 'break-even' Point.

Tue Jun 20, 2006 10:02 pm

Source : Travel Trade Gazette

Quote:
EOS, the all first class airline claims it has reached break-even point 9 months after it's launch. However the airline also revealed a US$36.5 million loss during it's start up period.

The airline founder, David Spurlock, said loads in MAy had averaged 60% and were significantly better this month.

"The next few weeks are booked to around 75%, and we typically sel 25% of our seats in the last week (before departure)"

Spurlock confirmed that Eos ... was covering all it's operating costs and will imminently confirm the start of a second service between two unnamed city pairs. He added that Eos had "plenty of cash, and remain the industry's second highest funded start up.

I find this particualrly interesting. Any idea's on the second service? And how E0 are impacting Maxjet??

7L

[Edited 2006-06-20 15:07:46]
Debate is what you put on de hook when you want to catch de fish.
 
thediplomat
Posts: 77
Joined: Fri Jun 02, 2006 4:59 pm

RE: EOS Claims Loads At 'break-even' Point.

Tue Jun 20, 2006 10:33 pm

Quoting 7LBAC111 (Thread starter):
was covering all it's operating costs

That doesnt mean break-even..... but lets not let facts get in the way of a good story, shall we..

Anyway... my first posting on airliners.net........
 
airmailer
Posts: 478
Joined: Thu Jun 01, 2006 4:28 am

RE: EOS Claims Loads At 'break-even' Point.

Tue Jun 20, 2006 10:44 pm

Quoting TheDiplomat (Reply 1):
Anyway... my first posting on airliners.net........

Welcom to the A.Net family!
 
latinaviation
Posts: 1162
Joined: Tue Nov 04, 2003 11:25 pm

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 1:47 am

It failed to mention that Spurlock resigned his post as CEO, as well:
With the growth and expansion of Eos, the airline also announces that its Founder, David Spurlock, will now assume the responsibility of Chief Strategic Officer, handing his role of Chief Executive Officer to Executive Chairman David Pottruck.
 
jaysit
Posts: 10186
Joined: Thu Jun 01, 2000 11:50 pm

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 1:55 am

Quoting 7LBAC111 (Thread starter):
I find this particualrly interesting. Any idea's on the second service? And how E0 are impacting Maxjet??

My IAD-STN Maxjet flight had a load factor of 72%, while the return flight was 48% full. Remember that Maxjet is far less luxurious than Eos (although plenty luxurious for the $ 1500 R/T they charge) and charge far less than Eos. Thus, they have different markets. Maxjet appeals to those businesses who don't have the cash to pony up for a $ 5000 J class fare, or for people who don't flinch from paying twice as much as regular coach for J class, but who wouldn't pay what the majors ask. Eos caters to Business travellers who have work in and around NE London and Cambridge who want to avoid LHR and LGW.
Atheism is Myth Understood.
 
N353SK
Posts: 1021
Joined: Thu Jun 08, 2006 5:08 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 2:02 am

I hope EOS succeeds, they really have a great product. I think they should leave the dump that is STN, though. How is LTN compared to STN?
 
roseflyer
Posts: 9602
Joined: Fri Feb 13, 2004 9:34 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 2:10 am

Quoting 7LBAC111 (Thread starter):
purlock confirmed that Eos ... was covering all it's operating costs

That is good, but it still does not mean that they are breaking even. Overhead for an airline can be expensive. I question on whether they will actually break even or if they will post a loss.

Quoting 7LBAC111 (Thread starter):
we typically sel 25% of our seats in the last week (before departure)"

I find that interesting. I am guessing that a lot of their travel is by business travelers. I know in my company at least there is a big push to get people to book tickets at least a week ahead of time, but a good percentage can't do that. I wonder how it works for Eos compared to Maxjet or the larger airlines.
If you have never designed an airplane part before, let the real designers do the work!
 
7LBAC111
Topic Author
Posts: 2427
Joined: Sun Jul 18, 2004 9:17 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 4:16 am

Quoting Jaysit (Reply 4):
My IAD-STN Maxjet flight had a load factor of 72%, while the return flight was 48% full. Remember that Maxjet is far less luxurious than Eos (although plenty luxurious for the $ 1500 R/T they charge) and charge far less than Eos. Thus, they have different markets. Maxjet appeals to those businesses who don't have the cash to pony up for a $ 5000 J class fare, or for people who don't flinch from paying twice as much as regular coach for J class, but who wouldn't pay what the majors ask. Eos caters to Business travellers who have work in and around NE London and Cambridge who want to avoid LHR and LGW.

I'm more than familiar with the market dynamics Jaysit. Try a search on my many many many posts on both Eos and Maxjet.

7L
Debate is what you put on de hook when you want to catch de fish.
 
N770WD
Posts: 92
Joined: Sat Sep 11, 2004 10:50 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 6:03 am

Quoting 7LBAC111 (Thread starter):
And how E0 are impacting Maxjet??

http://home.businesswire.com/portal/...&newsId=20060620005885&newsLang=en

Appears both airlines are doing well. MAXjet had a May JFK load factor of 72%. MAXjet carried 3,950 of 5,500 total passengers in the market. You can deduce what Eos' load factor was. As for Washington, Dulles goes to 5x weekly on June 29th.
 
apodino
Posts: 3870
Joined: Mon Apr 04, 2005 2:11 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 6:09 am

Quoting N353SK (Reply 5):
I hope EOS succeeds, they really have a great product. I think they should leave the dump that is STN, though. How is LTN compared to STN?

The runway at LTN is only 7,000' long. While this is plenty long enough to land, and in the US for most 757 departures, one thing to remember is with a fully fueled 757, it may be a bit short. STN at 10,000' long is more suited to a transcons needs.
 
cwldude
Posts: 573
Joined: Mon May 08, 2006 2:17 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 6:24 am

eos are an american registered company aren't they?? So maybe JFK-PAR or some other major european city? I can't see them starting another UK route unless they're gonna do MAN or GLA??
Thomson Airways - The UKs premier charter airline // now flown : BY -AA -AJ -AE -AT; OO -AX -AU -RA -BG; BRIG; OBYD
 
gilesdavies
Posts: 2331
Joined: Tue Dec 02, 2003 7:51 pm

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 6:53 am

Quoting Apodino (Reply 9):
The runway at LTN is only 7,000' long. While this is plenty long enough to land, and in the US for most 757 departures, one thing to remember is with a fully fueled 757, it may be a bit short.

There is no issue with the runway at LTN for a 757 to get accross the pond to NYC.

Continental operate their 757's BRS to EWR non-stop, and BRS only has a runway of 6598ft long and that is with a payload of up 183 pax.

ThomsonFly have operated their 762's direct to BGI from LTN on creuise flights and Monarch did operate 332's to SFB non-stop too.

Slight correction too, LTN's runways is 7087ft long!!!  Wink That 87ft can make a big difference!

Also while were on the subject of LTN... Are the new start-up first class airlines called FlyFirst or Silverjet still intending on launching from LTN-EWR? The news seems to have gone very quiet.
 
cwldude
Posts: 573
Joined: Mon May 08, 2006 2:17 am

RE: EOS Claims Loads At 'break-even' Point.

Wed Jun 21, 2006 7:01 am

I think it's because STN has many many many more connections into Europe that LTN. Granted you wouldnt really want to fly off on an FR, EZY, or TOM flight after an EO or MXJ flight, but I suppose some people have to!
Thomson Airways - The UKs premier charter airline // now flown : BY -AA -AJ -AE -AT; OO -AX -AU -RA -BG; BRIG; OBYD

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