Thursday, December 01, 2005

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.
Eos Airlines - Home Page

Monday, November 28, 2005

Custom Streaming Radio - Discover New Music

I stumbled upon Pandora, part of the Music Genome Project. (That's marketing speak) But, this system is absolutely incredible. Type in any artist or song, and it will produce a custom radio station with other artists, many of which you may not know. Click play, and start enjoying the endless stream of new artists. In my opinion, it's pretty impressive how extensive their database of music appears to be. Best of all, the music stream is FREE!!

One cool feature is you can pause the streaming music, and, when you come back and hit PLAY, it picks up right where you stopped. Basically, it's streaming radio, only better, much better. Even streaming radio seems to have some kind of playlist. Not on Pandora, each time, you get a new, original playlist.

From their 'About Us' Section:

For almost six years now, we have been hard at work on the Music Genome Project.
It's the most comprehensive analysis of music ever undertaken. Together our team
of thirty musician-analysts have been listening to music, one song at a time,
studying and collecting literally hundreds of musical details on every song. It
takes 20-30 minutes per song to capture all of the little details that give each
recording its magical sound - melody, harmony, instrumentation, rhythm, vocals,
lyrics ... and more - close to 400 attributes! We continue this work every day
to keep up with the incredible flow of great new music coming from studios,
stadiums and garages around the country.
We've now created an interface to
make this available to music lovers so they could use this musical
'connective-tissue' to discover new music based on songs or artists they already

Discover Music - Pandora and listen to streaming music for FREE