Your Luxury Airline has arrived - ENTER "Eos Airlines"

Talk about uber-luxury! It doesn't get much better than this. Approximately 48 total passengers on one Boeing 747. That's not too many people, for those of you who have never flown the Jumbo Jet. In fact, that's virtually no one on a plane this size. I'm very interested to see how EOS Airlines does. They already have 3 Jets in service and only one route of service. London (Stansted) to New York (JFK). And they already have three Jets in service!! Considering they Launched in mid-October, this either signifies that their concept works, or they are very, very well funded (well, they are probably well funded regardless. After all, they are in a capital intensive industry). The airline industry, as you well know, is fraught with, sorry for the pun, turbulence. With the bankruptcies of Delta, United, etc, I think it has become obvious that the airline industry is evolving. Southwest and, arguably, JetBlue have shown that the low-cost route can be successful, assuming good management and execution. And, with the proliferance of the Travelocity's and Orbitz's of the internet, most consumers have shown that low-cost works. But low-cost isn't the only place to compete.

Yet, no one has focused on the higher-end-only segment. Sure, Virgin has reclining seats, Singapore Airlines too; however, as far as I know, next to fractional jet ownership, EOS is the only airline to be so exclusively high-end. And, for a price of $2,500 from New York to London, only the high-end will fly this airline. So, for 4x more money than a standard coach fare, you can fly to London, sleep on the way there, and eat world-class cuisine before you land.

Let's look at the numbers real quick. Given a flight from JFK to London is roughly 8 hours, EOS is realizing $15,000 in Revenue/hour, or $120,000 for the whole flight (assuming all the seats sell). Compare that to a standard 747, with 212 passengers. Let's assume the average sales price for the flight on a standard 747 is $500 for the same route. That's only $106,000 in revenue for the same flight. Assuming both flights are full of passengers, EOS stands to make 13% higher Revenues on the same flight that any major carrier makes. All this, with less cost for baggage handling, cabin cleaning, etc. In the ultra-competitive landscape of the airline industry, 13% explains why EOS appears to be so well funded. It's a no brainer for investors.

You know, disruptive technology, and/or innovation arguably drives and creates new industries. It's funny how the large carriers failed to innovate. Instead, they responded to innovations that start-ups proved to be successful. Hence, Delta's Song, United's Ted, etc. But, the big boys, with these offshoot "low-cost" carriers, are only responding to, and replicating, what Southwest had been doing for years. Yet, they failed to trump other start-ups in other aspects. Such as EOS Airlines and the Uber-luxury market.

I don't know, but this EOS stuff smells like Disruption.
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