EOS starting proving runs
08-09-2005, 08:20 PM
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EOS starting proving runs
Aviation Daily
Eos Wins Tentative Approval From DOT, Starts Proving Runs
08/09/2005 09:56:02 AM
By Steven Lott
Startup Eos Airlines on Friday won tentative approval from the U.S. Transportation Dept. to launch international operations, putting the carrier on a fast track to start FAA proving run flights this week and launch scheduled flights in several months.
Many observers said Eos was too optimistic when executives this summer said they planned to launch flights in the third quarter, but it appears the airline's approval is ahead of other U.S. carriers trying to win certification for new operations or aircraft. Eos, formerly known as Atlantic Express, first applied to DOT in November asking for a foreign scheduled air certificate (DAILY, Nov. 11, 2004).
20 Aircraft By Fifth Year
Eos CEO David Spurlock, former British Airways executive, in June unveiled the carrier's name and said he planned to launch service between New York Kennedy and London Stansted by the end of September (DAILY, June 9). The airline wants to operate Boeing 757-200s configured for 48 seats on the London route and eventually wants to add service to The Netherlands and Germany. The carrier will start with four planes and add four per year to arrive at a fleet of 20 aircraft by the fifth year of operation.
DOT on Friday issued a show cause order tentatively approving the airline's certificate and said the airline's proposal calls for first-year operating costs of about $75 million. "We have reviewed the forecast direct operating costs and believe them to be reasonable overall," DOT said. The airline, however, in its application estimates it will pay $1.21 per gallon of fuel, while the current price is about $1.65 per gallon.
Underestimated Fuel Price
Furthermore, DOT in the show cause order given to MaxJet in January said that $1.50 per gallon is a proper fuel price estimate for a startup carrier. "We would expect that a new carrier, particularly one with a small fleet such as proposed by [MaxJet], that does not have fuel price hedges or the mass buying power of the larger carriers, would incur even higher costs," DOT said at the time. If Eos has underestimated its costs, DOT requires the airline to submit a revised list of expenses paid and project costs before the department awards final certification.
Eos is working with FAA's New York Flight Standards District Office, and officials told DOT that the office "knows of no reason why we should not find Eos fit." The New York FSDO has moved at a swift pace to review Eos, faster than some other offices that were working through certification applications of new and existing carriers, such as MaxJet, Trans States, Republic and America West.
MaxJet is working with the Washington Dulles FSDO; it completed proving runs last week and hopes to start flights later this year.
Eos Wins Tentative Approval From DOT, Starts Proving Runs
08/09/2005 09:56:02 AM
By Steven Lott
Startup Eos Airlines on Friday won tentative approval from the U.S. Transportation Dept. to launch international operations, putting the carrier on a fast track to start FAA proving run flights this week and launch scheduled flights in several months.
Many observers said Eos was too optimistic when executives this summer said they planned to launch flights in the third quarter, but it appears the airline's approval is ahead of other U.S. carriers trying to win certification for new operations or aircraft. Eos, formerly known as Atlantic Express, first applied to DOT in November asking for a foreign scheduled air certificate (DAILY, Nov. 11, 2004).
20 Aircraft By Fifth Year
Eos CEO David Spurlock, former British Airways executive, in June unveiled the carrier's name and said he planned to launch service between New York Kennedy and London Stansted by the end of September (DAILY, June 9). The airline wants to operate Boeing 757-200s configured for 48 seats on the London route and eventually wants to add service to The Netherlands and Germany. The carrier will start with four planes and add four per year to arrive at a fleet of 20 aircraft by the fifth year of operation.
DOT on Friday issued a show cause order tentatively approving the airline's certificate and said the airline's proposal calls for first-year operating costs of about $75 million. "We have reviewed the forecast direct operating costs and believe them to be reasonable overall," DOT said. The airline, however, in its application estimates it will pay $1.21 per gallon of fuel, while the current price is about $1.65 per gallon.
Underestimated Fuel Price
Furthermore, DOT in the show cause order given to MaxJet in January said that $1.50 per gallon is a proper fuel price estimate for a startup carrier. "We would expect that a new carrier, particularly one with a small fleet such as proposed by [MaxJet], that does not have fuel price hedges or the mass buying power of the larger carriers, would incur even higher costs," DOT said at the time. If Eos has underestimated its costs, DOT requires the airline to submit a revised list of expenses paid and project costs before the department awards final certification.
Eos is working with FAA's New York Flight Standards District Office, and officials told DOT that the office "knows of no reason why we should not find Eos fit." The New York FSDO has moved at a swift pace to review Eos, faster than some other offices that were working through certification applications of new and existing carriers, such as MaxJet, Trans States, Republic and America West.
MaxJet is working with the Washington Dulles FSDO; it completed proving runs last week and hopes to start flights later this year.
