EOS/MAX JET
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Taken from this week's ABTN newsletter, regarding Maxjet:
ALL-BUSINESS-CLASS BOOKINGS: The MAXjet model of a one-configuration airline has been met with huge applause, with our booking loads to New York regularly exceeding 50%. We have managed to build up our loads as quickly, if not quicker, than any airline that has developed a new international route and recently for the first time ever, our New York flight was 100% full. Forward bookings indicate that the New York route will average at 70% load factors for the month, with bookings for June also looking strong. The Stansted to Washington route is gaining ground and we are confident in its success with forward bookings for some flights already indicating 50% load factors.
Furthermore:
Not only do our forward bookings illustrate the growing success, butthe quality of our product is also endorsed by the results from thefirst ever passenger survey. Some 87% of our customers found theexperience to be ‘very good’ or ‘excellent’ and 95% of passengers saidthey would be likely to fly with us again. We are now negotiating forour third and fourth aircraft to expand the MAXjet fleet.
See here for more.
ALL-BUSINESS-CLASS BOOKINGS: The MAXjet model of a one-configuration airline has been met with huge applause, with our booking loads to New York regularly exceeding 50%. We have managed to build up our loads as quickly, if not quicker, than any airline that has developed a new international route and recently for the first time ever, our New York flight was 100% full. Forward bookings indicate that the New York route will average at 70% load factors for the month, with bookings for June also looking strong. The Stansted to Washington route is gaining ground and we are confident in its success with forward bookings for some flights already indicating 50% load factors.
Furthermore:
Not only do our forward bookings illustrate the growing success, butthe quality of our product is also endorsed by the results from thefirst ever passenger survey. Some 87% of our customers found theexperience to be ‘very good’ or ‘excellent’ and 95% of passengers saidthey would be likely to fly with us again. We are now negotiating forour third and fourth aircraft to expand the MAXjet fleet.
See here for more.
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LB1985:
I read the same ABTN piece but had to apply a hearty pinch of salt. In particular, the assertion that taking 5 months to build a new international route to an average 70% load factor is some sort of world record
would come as a surprise to the low-cost carriers (on numerous routes) and also compares unfavourably to the likes of Continental or Emirates whose EDI-EWR and GLA-DXB startups (to take two examples) did far better far faster (and with more than 102 seats to fill every day).
I think Maxjet is trying to sound big and strong at the moment, particularly with Silverjet trying to raise funding to start a Maxjet-lookalike operation out of LTN, so I put this sort of hyperbole down to that. Shame, because I think they have a decent story to tell without the need for exaggeration.
I read the same ABTN piece but had to apply a hearty pinch of salt. In particular, the assertion that taking 5 months to build a new international route to an average 70% load factor is some sort of world record
would come as a surprise to the low-cost carriers (on numerous routes) and also compares unfavourably to the likes of Continental or Emirates whose EDI-EWR and GLA-DXB startups (to take two examples) did far better far faster (and with more than 102 seats to fill every day).I think Maxjet is trying to sound big and strong at the moment, particularly with Silverjet trying to raise funding to start a Maxjet-lookalike operation out of LTN, so I put this sort of hyperbole down to that. Shame, because I think they have a decent story to tell without the need for exaggeration.
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Not totally startled that loads are good considering they are selling abiz class service and economy prices....load factors mean absolutely nothing unless the revenue attached pays the cost of the operation!!!
This could apply to either Maxjet or EOS..
This could apply to either Maxjet or EOS..
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Neither of the load factors quoted would particularly please the owners or the Banks. Even 70% is only just ticking over and if you look at the United web site ex LHR they too are offering low fare business class. Lets hope that both Max / EOS do get the chance to establish themselves but Silver at this time will not help?
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DOT Form 41 Maxjet and EOS
Eos, Maxjet reveal financials for second half of '05
Financial reports submitted to the US DOT by all-business transatlantic startups Eos and Maxjet Airlines reveal the level of deficit each carrier accumulated for the six months ended 2005.
Eos launched service on October 18, followed two weeks later by Maxjet’s November 1 inaugural flight. As such, each carrier’s recorded earnings for the second half of last year include a period when neither was in operation.
In it required ‘form 41’ submission to the regulator, Eos says it posted a net loss of $36.5 million on revenue of $1.3 million for the six-month period. The carrier incurred expenses of $38.2 million, leading to an operating loss of $36.9 million.
At December 31, Eos listed its total assets at $51.7 million.
Maxjet, meanwhile, reported a net loss of $10.2 million against revenue of $2.4 million during the second half of the year. The airline’s expenses totaled $10.7 million and it posted an $8.3 million operating loss.
Its assets were worth nearly $12.5 million at December 31.
Eos operates service between New York JFK and London Stansted using Boeing 757s configured with 48 seats. Maxjet also serves this route, and last month began flights linking Washington Dulles with Stansted. The carrier’s 767 aircraft are equipped with 102 business-class seats.
Financial reports submitted to the US DOT by all-business transatlantic startups Eos and Maxjet Airlines reveal the level of deficit each carrier accumulated for the six months ended 2005.
Eos launched service on October 18, followed two weeks later by Maxjet’s November 1 inaugural flight. As such, each carrier’s recorded earnings for the second half of last year include a period when neither was in operation.
In it required ‘form 41’ submission to the regulator, Eos says it posted a net loss of $36.5 million on revenue of $1.3 million for the six-month period. The carrier incurred expenses of $38.2 million, leading to an operating loss of $36.9 million.
At December 31, Eos listed its total assets at $51.7 million.
Maxjet, meanwhile, reported a net loss of $10.2 million against revenue of $2.4 million during the second half of the year. The airline’s expenses totaled $10.7 million and it posted an $8.3 million operating loss.
Its assets were worth nearly $12.5 million at December 31.
Eos operates service between New York JFK and London Stansted using Boeing 757s configured with 48 seats. Maxjet also serves this route, and last month began flights linking Washington Dulles with Stansted. The carrier’s 767 aircraft are equipped with 102 business-class seats.
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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
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
Freight God
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Originally Posted by The SSK
Nothing to do with high or low fares. Some of us remember People Express, whose schedule integrity transatlantic was a joke, and ultimately cost them their market.
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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
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
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.
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.
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Cyrano
thanks for pointing that out i totally forgot it was over a shorter period. But still...
Whether it's $1.3m revenue in one, two or three months or indeed 6 months - it's still diabolical and that was my point. They could make $1.3m in ONE MONTH if they sold all seats on all flights at $226 one way (assuming two daily's on 30 days a month)
I'm just thinking of the investors money! It's being flushed down a very large plug hole. (These days airlines need to make returns pretty quick)
thanks for pointing that out i totally forgot it was over a shorter period. But still...
Whether it's $1.3m revenue in one, two or three months or indeed 6 months - it's still diabolical and that was my point. They could make $1.3m in ONE MONTH if they sold all seats on all flights at $226 one way (assuming two daily's on 30 days a month)
I'm just thinking of the investors money! It's being flushed down a very large plug hole. (These days airlines need to make returns pretty quick)
Too mean to buy a long personal title
Originally Posted by EarthOrbitor
(These days airlines need to make returns pretty quick)
Globaliser
I sometimes wonder how these investors have arrived at a position of having deep pockets given their breathtakingly naive decisions. I said Eos didn't have a chance of success the day it launched and I say so again today. It is not a question of if but when.
I sometimes wonder how these investors have arrived at a position of having deep pockets given their breathtakingly naive decisions. I said Eos didn't have a chance of success the day it launched and I say so again today. It is not a question of if but when.
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load
Travelled on EOS twice in the last two weeks...outbound the load was 46 out of 48 and on the return 44....95% of the pax were revenue pax...
There is an 18 sector charter program this month on top of the daily scheduled flights and the addtion of an extra flight in September...investors include Sutter Home Wine and Starbucks so very deep pockets and a long term strategy for growth are clearly evident.....dont be so quick to write them off!!
There is an 18 sector charter program this month on top of the daily scheduled flights and the addtion of an extra flight in September...investors include Sutter Home Wine and Starbucks so very deep pockets and a long term strategy for growth are clearly evident.....dont be so quick to write them off!!
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Here Here!!! At last somebody who knows what they are talking about! With some true factual information to back up a point! Not just a pessimist who would like to see some innovation flushed down the toilet!
Originally Posted by gatwicknose
Travelled on EOS twice in the last two weeks...outbound the load was 46 out of 48 and on the return 44....95% of the pax were revenue pax...
There is an 18 sector charter program this month on top of the daily scheduled flights and the addtion of an extra flight in September...investors include Sutter Home Wine and Starbucks so very deep pockets and a long term strategy for growth are clearly evident.....dont be so quick to write them off!!
There is an 18 sector charter program this month on top of the daily scheduled flights and the addtion of an extra flight in September...investors include Sutter Home Wine and Starbucks so very deep pockets and a long term strategy for growth are clearly evident.....dont be so quick to write them off!!
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Blimey! You really do not want to see EOS do well do you? Your persistent EOS bashing is really starting to lag now! You were proved wrong and again came back with a negative comment. Come on give it a rest and let people really discuss these two new....ish exciting airlines
