Mark Frary
Win tickets to the ATP finals
My comments last week about who had deep enough pockets to fund all business airlines proved eerily prescient. At the weekend, Eos Airlines, which operated four times daily services between London Stansted and New York JFK, announced that it was bankrupt after failing to access $50m in emergency funding it had lined up to keep it going.
Unlike other airlines in America which have continued to fly after entering so-called Chapter 11, Eos said it saw no way to keep going.
The airline’s demise has caused much upset both among business travellers who had enjoyed its very slick service and people in the travel industry. Norman Gage of business travel agency group Advantage said the Eos service was unique and that its members were disappointed to see it go.
A look through the documents filed by the airline with the US bankruptcy courts shows that it has debts of $35 million, although it still claims significant assets in excess of this.
One thing that caught my eye in the documents was the admission that the airline employed a chief lifestyle officer. Now call me old-fashioned but I’m a firm believer in the idea that airlines should employ just a handful of C-level staff: a CEO, a CFO, a COO, a CIO and of course, a chief pilot. Perhaps everything you need to know about Eos is contained in that little snippet.
Then today comes more news. The failure of Eos and Maxjet has inevitably focused attention on Silverjet, which operates all business services from Luton to both New York Newark and Dubai.
Last week, I revealed that the airline’s chief executive had been spotted in Abu Dhabi and that the carrier had been in talks with Middle Eastern investors.
Today, the carrier says it has picked up a promise of $25m in new money to keep the all business dream alive. Let’s hope, for the sake of business travellers who enjoy variety on their choice of transatlantic airline, that the money is easier to secure than that which had been promised to Eos.
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