Is Eastern Airlines primed for a comeback?
A group of investors seeking to start a new airline with a familiar name filed papers this week with the Department of Transportation to fly a single A320 in charter operations, with possibility of later adding two more planes. At its core, this filing, first reported by the Miami Herald, is no different than one for any other emerging airline.
But what’s amazing here is that these investors bought the intellectual property of the former Eastern Airlines, which shut down in 1991. Eastern’s branding was pretty iconic for its era, and it seems to hold up nicely. You can see more examples on the airline’s website – http://easternairlines.aero/.
I don’t know whether the new Eastern will make it. Like with all new airlines, the likelihood is not so good. This is a tough business.
But the filing with DOT, officially called a Certificate of Public Convenience and Necessity, has some interesting information on the economics of new air service.
Read on for some fascinating details, like the fact that it costs $175,000 to rent an A320 for a month.
Eastern Air Lines Group, Inc.
Base: Miami (MIA)
Funding: New Investors (Common) January 1, 2014 $14,000,000
Financing Costs: $850,000
EAL Trademark: Asset Purchase $675,000
Start Up Period January 1, 2014
Revenue Operations January 1, 2015
Seating Configuration: 170
Monthly Lease Rate: $175,000
Aircraft 1: November 1, 2014 1
Aircraft 2: December 1, 2014 2
Aircraft 3: July 1, 2015 3
Monthly Revenue Flying: 200 hours per aircraft
Monthly Non Revenue Flying: 15 hours per aircraft
Average Trip Length (Miles): 1100 statute miles
Average Block Time: 3 hours per trip
Aircraft Monthly Lease Rate: $175,000 per aircraft
Cockpit Crew: (Number redacted) per block hour
Cabin Crew: (Number redacted) per block hour
Maintenance: $750 per block hour
Insurance – Hull: $52 per block hour
Insurance – Liability: $71 per block hour
Fuel Consumption: 800 gallons per block hour
Fuel Cost: $3.50 per gallon
Landing – Airport Fees: $1,000 per flight
Positioning Flights per Block Hour: $4,208
Positioning Flights per Flight: $1,000
Corporate Overhead: $250,000 /mo + $ 25K/mo for each add’l aircraft after 2.
Want to learn more? Here’s all 43-pages of the Eastern Airlines filing.