Archive for the 'Eos Airlines' Category

Plenty of room to stretch out in all-business-class airlines across Atlantic

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Travelers hoping for an empty adjacent seat on startup airlines MaxJet and Eos Airlines are in luck. The all-business class carriers are flying rather empty thus far, according to the Times of London.

The numbers aren’t broken out, but the two airlines combined to show a 32% load factor, i.e., two out of three seats left empty. MaxJet’s fleet consists of Boeing 767-200s configured for 102 passengers, while Eos flies 757s outfitted with 48 seats. Maxjet’s CEO, Gary Rogliano, charges that competitor Eos’ planes are only carrying 5 to 10 passengers per flight — a load factor between 10 and 20%, if true. Compare this to the major airlines’ load factors, which hover near 80%.

Rogliano also argues that the winter is a slow travel season — but this is primarily true for leisure travel, not business travel. The summer is when we really see business-class bookings across the Atlantic drop, and when the airlines offer business class sale fares.

Maybe this is where the real Maxjet business model lies: high-rolling vacationers, and not business travelers at all. While the MaxJet model has its flaws, its sale fares are still a great deal for high quality inflight service. Perhaps they’ll survive on tourist bookings, if they can stay aloft.

MaxJet’s fatal flaw?

Last week, I mentioned MaxJet and Eos, two new all-business class carriers on the New York to London route. Both fly to Stansted Airport, instead of Heathrow or Gatwick. MaxJet is also expanding to the Washington-Dulles to London-Stansted route starting March 15.

The lowest NYC-London fare (with restrictions) on MaxJet comes to $1492 with taxes. (Eos’ lowest fare is currently $3048, and requires a weekend stay and 30-day advance purchase.) According to a recent New York Times profile, both players are aggressively courting investment banks and other large premium-cabin customers.

But the MaxJet seat may be a deal-breaker for the business traveler. Sure, it’s more comfortable than coach, and this glowing (and detailed!) trip report of the inaugural flights describes a nice cabin service.

But the seat has one major weakness: No power. This means you’re at the mercy of your laptop battery if you plan to do any work on the flight. Eos, in contrast, offers regular AC power outlets at their seats. All the major airlines offer power at their seats, though they often require an adapter.

This is probably more important on the west-bound segment than the overnight east-bound trip, but even so, how many investment bankers do you know who AREN’T working inflight?

MaxJet seems to be trying to position itself at the upper end of coach and at the bottom end of business class. But it doesn’t sound like they really mean business.

More trans-Atlantic flights, but lower prices?

In recent weeks, airlines have added destinations and frequency on trans-Atlantic routes. USAirways announced new destinations in Lisbon, Milan, and Stockholm, while Delta added Dakar and Johannesburg.

Plus, all-business class startups Maxjet and Eos Airlines have opened for business. (Both of these carriers fly solely from New York’s JFK to London’s Stansted Airport, not to the larger Heathrow or Gatwick airports.)

Are lower fares coming for the busy summer tourist season? Don’t bet on it.

At least not yet, and not in coach. Demand has been strong, and capacity has not reached saturation levels. For example, Continental raised capacity 16.8% last year, but increased revenues 26.6%.

Where you might actually see downward pressure, especially in the summer, is in premium cabins.

Get to know Z fares.

When you buy a plane ticket, it books into a fare basis code, or “bucket,” which starts with a letter. (These letters vary by airline.) Full-fare, refundable economy fares, for example typically start with the letter Y. First class is usually F, P or A, and business class is commonly C, D, or J.

“Z” fares are commonly discounted, nonrefundable business class fares. They are common on trans-Atlantic routes in the summer, when business travel (and paid business class) tends to subside and tourist travel ramps up. Sometimes, they will cost little more than an economy class ticket. Last July, for example, I recall an economy fare to Germany for nearly $1300. Ouch. The Z fare for business class: $1600.

Bottom line: If you’re looking for summer travel across the Pond, and prices seem high, be sure to separately search for both business and economy fares. You might just find a premium-class deal.

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