July 06, 2007

American Airlines Smells Eos' Blood

American Airlines has had enough with Eos (and MAXjet, I guess):  They have announced that they are launching daily nonstop service from JFK to Stansted on a 767 (they used to serve STN from Chicago about 14 years ago).  They're also giving triple miles on flights between New York and London in business or first.  Knowing what little I know about the economics of that route, there is roughly zero chance they'll make any money on it.  Continental couldn't give away seats on their brief and ill-fated time flying EWR-STN in 2001. 

While AA's first class isn't even in the same league as Eos, they certainly have deeper pockets and have now decided they're finished with the competition.  So, who'll blink first?  Can AA really drive Eos out?  Does anyone care?

Oh, and they've also just filed a GBP 75 round trip fare from London to New York for November and December travel.  Take THAT, Zoom!

July 6, 2007 | Permalink | Comments (1)

May 04, 2006

EOS Airlines Lowers Prices to $1475 Each Way to London

EOS Airlines, which flies all first class seats to London from New York, has lowered fares to $1,475 each way.  The airline had originally hoped to get $3200 each way, has lowered prices in a bid to win traffic from the myriad other airlines flying the same route.  EOS' seats and service are at least as nice as anyone's first class, so this is a bargain.  Even so, you can fly the all-business-class MAXjet for about $1000 round trip (sometimes less).  If price is no object, though, EOS is a steal. 

May 4, 2006 | Permalink | Comments (0)

April 11, 2006

Yet Another Business Class Airline to London?

A new airline called Silverjet announced that it will launch all-business class service between Newark and Luton Airport in London by the end of the year.  The carrier, which will compete with similar services by EOS and MAXjet, will charge about $1800 round trip for one of its 100 lie-flat seats on a 767.  They also said that they expect to be able to charge as little as $200 round trip for some seats.  You do the math.  Anyway, they need to raise about $45 million before they go out of business, er, launch.

April 11, 2006 | Permalink | Comments (0)

March 29, 2006

EOS Offers Money Back Guarantee

All business-class carrier EOS is offering a money back guarantee for its flights from New York to London.  Here's the deal:  First off, it's only for passengers flying EOS for the first time.  Second, you have to have flown British Airways or Virgin Atlantic twice in business or first class in the past six months.  That's a pretty big hurdle.  Even so, EOS' $3500 round trip fare is a bargain (considering what you get), and if the service isn't as nice as BA or Virgin, they'll give you the $3500 back.  Hard to beat.


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March 29, 2006 | Permalink | Comments (0)

February 07, 2006

EOS and MAXjet: An Update

You may be wondering how MAXjet and EOS are doing.  You may first be wondering what they are (in which case you probably don't care how they're doing).  The new carriers, flying all business class seating across the Atlantic, have both been offering fare sales regularly.  So, in an OTR first, I've done a bit of an investigation into how their seats are selling, and here's what I've learned:

Looking at the number of seats sold for the next six flights on each airline, the picture isn't particularly pretty, and it's quite ugly for EOS.  MAXjet has an average load factor (percent of seats sold) of 35%, with a high load factor of 49% and a low of 18%.  EOS has an average of 22%, with a high of 42% and a low of 10%. 

Sure, lots of business travelers fly on little notice, so the load factors will improve as the dates get closer, but these dates are pretty close to begin with.  Nobody makes money at 35% or 22%.  Or even at their high levels of 49% and 42%.  Admittedly, winter is slow for travel to London.  But it's mostly business travel on these airlines, and it won't necessarily pick up in summer.

Both of these guys have some cash to burn, so they're not going anywhere anytime soon.  But these early numbers suggest it may be a rough road.

February 7, 2006 | Permalink | Comments (5)