Runway23 From Canada, joined Jan 2005, 1622 posts, RR: 34 Reply 1, posted (8 months 2 weeks 1 day 20 hours ago) and read 14266 times:
From their website:
April 26, 2008
To Our Valued Guests,
The relationship we have is very special. You have shown a true appreciation for the commitment and service that defines Eos Class and it has always been our pleasure to deliver Eos Class service to you. The sense of camaraderie and level of engagement we've developed together transcends the traditional airline space.
Our unique relationship makes it all the more difficult to share with you the news that Eos has filed for bankruptcy in the U.S. Bankruptcy Court in the Southern District of New York. On April 26, 2008, we plan to operate Flight 6 (8:30pm) from JFK to STN. On April 27, 2008, we plan to operate Flights 3 (1:00pm) and 7 (6:30pm) from STN to JFK. Flight 5 from STN to JFK and all flights from JFK to STN on April 27, 2008 are canceled. We will cease operations entirely after April 27, 2008.
This announcement is particularly regrettable since we have achieved so much, including having a term sheet in hand for additional financing. Clearly, even in today's challenging economic and credit environment, investors believe in Eos. Unfortunately, some issues arose that prevented the parties from moving forward.
We sincerely apologize to those of you who have travel planned in the days ahead. Eos Guests should seek alternative arrangements for travel and should contact their credit card companies or travel agents directly for information about how to obtain a refund for unused tickets.
For our Club 48 members, unfortunately, in the face of this bankruptcy filing, you will no longer be able to redeem your points for rewards. Any value related to your membership will be determined by the court as part of the bankruptcy process.
Cubsrule From United States, joined May 2004, 9267 posts, RR: 5 Reply 5, posted (8 months 2 weeks 1 day 20 hours ago) and read 14211 times:
Quoting Runway23 (Reply 1): This announcement is particularly regrettable since we have achieved so much, including having a term sheet in hand for additional financing. Clearly, even in today's challenging economic and credit environment, investors believe in Eos. Unfortunately, some issues arose that prevented the parties from moving forward.
?? Weird... it's clearly not a strategic filing (like F9 arguably was) since they're shutting down... something smells fishy
Jack Williams, Eos’ CEO, said: “After overcoming today’s extremely challenging
economic and credit environment to negotiate terms for a round of financing, it is
regrettable that we were forced to take this action. We had been clear since
closing on our last round of financing that we would need additional capital. As
difficult as it is to raise funds in the current environment, investors believe in our
business model and we were on the verge of success.
“Unfortunately, just as we were working toward closing on an investment that
would have carried us to corporate profitability in 2009, some issues arose that
we could not overcome. It is regrettable that, even though investors continue to
be enthusiastic about our business model, and even though we had a term sheet
in hand, we were unable to close on the financing we needed. That leaves us
with insufficient cash on hand to continue operations.
“There are times in business when even though you execute your business plan
and even though your employees do their jobs beautifully, external forces
prevent you from controlling your own destiny.
VC10DC10 From United States, joined Apr 2006, 639 posts, RR: 0 Reply 7, posted (8 months 2 weeks 1 day 20 hours ago) and read 14183 times:
At least someone took the time and trouble to write the most touching farewell note I've ever seen from a struggling company. I'm sorry to see this--for Eos's shareholders and other financial stakeholders, its customers, and its employees.
HA_DC9 From United States, joined Jul 1999, 541 posts, RR: 1 Reply 9, posted (8 months 2 weeks 1 day 20 hours ago) and read 14189 times:
Sad to see another one go the way of AQ and ATA. Good luck to the employees. So I take it their 6 752s are becoming available very shortly to the highest bidder.
You could put Zoom and L'avion there also........ Looks like premium service between US & UK is not that premium for airlines afterall!!! I wonder if BA is giving second thoughts to its Openskies adventure!!!
LAXintl From United States, joined May 2000, 9600 posts, RR: 12 Reply 12, posted (8 months 2 weeks 1 day 20 hours ago) and read 13953 times:
As I had mentioned in a previous post, Eos was within days of shutting down baring the added equity infusion. Suppose the investor that allegedly committed $50mil last week smartly woke up.
Now lets see how long Silverjet manages to hang on -- these premium carriers while cute, are just terrible business ideas that are simply not viable on standalone basis.
From the desert to the sea, to all of Southern California
Commavia From United States, joined Apr 2005, 6254 posts, RR: 46 Reply 13, posted (8 months 2 weeks 1 day 20 hours ago) and read 13913 times:
I'll bet AA's 767 (now the single only flight on the route, down from as many as 6 less than 6 months ago) is going to be getting a bit fuller in the coming weeks.
AlitaliaMD11 From Spain, joined Dec 2003, 3978 posts, RR: 10 Reply 15, posted (8 months 2 weeks 1 day 19 hours ago) and read 13703 times:
I'm curious if this means British Airways will be rethinking their proposed all business class LCY-JFK flights with A318s as well as their Open Skies plans.
LAxintl From United States, joined May 2000, 9600 posts, RR: 12 Reply 16, posted (8 months 2 weeks 1 day 19 hours ago) and read 13625 times:
No need for BA to rethink anything. Its a very different thing for a major airline to offer a premium product then a stand alone airline. The economics and risk are totally different. BA's LCY operation will do just fine - actually I think LCY is a brilliant idea.
Openskies is a somewhat different concept being multi class, with BA simply dipping their toes in continental flying to the US, its success or failure will be more if BA can establish a market presence and convince people to fly BA directly instead of via LHR or other nonstop carriers in the market.
From the desert to the sea, to all of Southern California
BALHRWWCC From United Kingdom (England), joined Dec 2007, 444 posts, RR: 0 Reply 17, posted (8 months 2 weeks 1 day 19 hours ago) and read 13526 times:
Quoting LAxintl (Reply 16): Openskies is a somewhat different concept being multi class, with BA simply dipping their toes in continental flying to the US, its success or failure will be more if BA can establish a market presence and convince people to fly BA directly instead of via LHR or other nonstop carriers in the market.
When BA set up openskies it could see the decline heading towards them thats why rather than just club they put in 3 classes. The routes will be marketed at business pax. So suits all Company business travel requirements.
LCY/NYC is just a cash cow. easily will fill the seats lets face it BA can load factor over 85% in J from LON-NYC and with over 800 seats a day that is good going. It will attract business on the route from it's major finance and banking companies who are based in the city. This is also the reason behing the sucess of there current LCY operation.
I am still suprised though. Thought EOS would out live the rest including Silverjet. So maybe Silverjet will come out on top... Or is this the end of business only carriers
BALHRWWCC From United Kingdom (England), joined Dec 2007, 444 posts, RR: 0 Reply 19, posted (8 months 2 weeks 1 day 19 hours ago) and read 13484 times:
Quoting Nicholaschee (Reply 18): 2 down. 1 to go. How much longer can Silverjet last?
Think they might suprise you. They may take this as a oman and cut back on US flights and add new routes to SA, India and the far east. Also someone will have to pick up Eos's and Maxjet's pax
Also the weakness of dollar will also have played a part in Eos and Maxjets downfall
Soxfan From United States, joined Mar 2008, 354 posts, RR: 0 Reply 20, posted (8 months 2 weeks 1 day 19 hours ago) and read 13437 times:
Would PrivatAir be considered in the same class of these other carriers in terms of being business-only? I haven't seen much discussion about them in relation to this topic, but I wonder if they are in a different situation financially since they are operating as part of other airlines (including Lufthansa and Swiss) as opposed to independently.
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