Originally Posted by EarthOrbitor
i think its time to pull the plug for Eos then, as it's assets will be dissolved in a matter of months if the losses continue! Just $1.3m revenue in 6 months!? My God, you'd earn more if they sold every seat every day at low-cost prices!
Max-Jet sounds less of a risk, but still revenue is appalling
I reckon the investors in Silverjet will be worried to say the least
EarthOrbitor:
Consider landing on earth and reading that original report again before you let loose with the over-the-top rhetoric.
As such, each carrier’s recorded earnings for the second half of last year include a period when neither was in operation.
EOS launched in mid-October, so $1.3m represents 2.5 months of revenue rather than six months. Go do your sums again.
Several of us around here have expressed doubts over the last few months about the robustness of the all-premium business model for a startup carrier (especially in EOS' case), and it does appear that EOS's initial loads were very poor, but basing criticism on faulty arithmetic doesn't really advance the discussion.
Any carrier is going to incur startup costs which initially exceed revenues, especially if the period which the accounts cover represents six months of startup costs and only the first ten weeks of revenue (eight or so in Maxjet's case). Virtually no startup airlines could expect to be profitable over such a short period. Silverjet, for your information, is projecting in its published business plan that it will take two years to reach profitability - and this is the basis on which it's secured investment recently. So I don't think the startup finances of EOS will tell the Silverjet investors anything they didn't already know when they were writing their cheques.
C.