Another Airline falls victim....

[USCtrojan]

EOS to cease operations Monday april 28th. Dam this industry sucks right now.

Trojan

 

[Abernathy]

what a shocker

 

[Soverytired]

Very, very sad.

By all accounts, their product was absolutely first rate.

 

[WalterSobchak]

Very, very sad.

By all accounts, their product was absolutely first rate.

Indeed it was...but apparently not cheap enough for the WalMart-ized American consumer.

48 seats on a B757...probably not the smartest business plan, but could have been doable if people were willing to pay for service. You just can't have a load factor of 55% on a fleet of 48 seat aircraft and do NYC to London runs...and expect to stay in business.

 

[USCtrojan]

Indeed it was...but apparently not cheap enough for the WalMart-ized American consumer.

48 seats on a B757...probably not the smartest business plan, but could have been doable if people were willing to pay for service. You just can't have a load factor of 55% on a fleet of 48 seat aircraft and do NYC to London runs...and expect to stay in business.

Good point. Unfortunately, the US airlines have proven passengers don't want service, they want rock bottom cheap fares. I'm sure their business plan probably had fuel around $80 a barrel like most others....

Trojan

 

[SennaP1]

As I understand it, alot of their passengers were high-end fund managers and the such from Wall Street.

I also saw while doing research on them a couple of "celebrities" on their flights most notably Jessica Biel. Not exactly the "greyhound fare passenger"

It's really too bad for them. Fuel, and I would imagine a lack of easy access to loans/more capital did them in.

 

[Soverytired]

The EOS business model wasn't interested in serving the masses. They catered to a very specific clientèle who didn't mind paying a premium for the perks. It wasn't just the phenomenal service on the plane, it was the service on the web/phone, quick check in at the airport, awesome pre-board lounges where chef-catered food was served . . . etc.

It was an interesting idea, and particularly well suited for the NY-LON routes. I suspect rising fuel costs, tight credit markets, and a failure to expand their route structure (NY and LONdon were it) all played a part.