Will Delta Sell AirElite?

Will Delta Sell AirElite?
Word Count:
470
Summary:
Delta Airlines is in bankruptcy and attempting to restructure its $20 billion debt. Can the carrier make it or should it concentrate on its other specialty, business jets?

Keywords:
Delta AirElite, business jets, private jets, Learjet, Gulfstream 550, Challenger 300, airlines, fly

Article Body:
Not many people outside of the airline industry know this, but Delta Airline owns and operates a lucrative division of private jets. Delta AirElite, as it is known, is the single bright spot in an otherwise dark business environment for this U.S. legacy carrier. Some are speculating that Delta should sell its AirElite business to raise funds and turn around the carrier, but I have another more radical take on things that I believe should be considered instead.
Established in 1984, Delta AirElite has been steadily growing and making money for Delta. While the airline part of the company is rapidly and continually hemorrhaging cash, AirElite continues to make money and grow. Indeed, with a fleet of sought after business jets in its portfolio including the Challenger 300, Gulfstream IV-SP, and Learjet 31A, AirElite is an attractive company for any potential suitor.
Truly, if Delta were to sell AirElite it would only slow the bleeding for Delta, not stop it. With debt totals exceeding $20 billion, a sale of AirElite would likely only fetch the carrier a few hundred million dollars, if that. Last year, Delta sold off its Delta Connection carrier, Atlantic Southeast Airlines (ASA), for $425 million cash to Skywest Airlines. The sale was perceived by industry analysts as a desperate one as ASA was valued to be worth between $700-800 million dollars. The sale took place just before the airline filed for bankruptcy in September 2005, and had no effect in stemming the filing.
So, what should Delta do? In my opinion, get out of the airline business altogether. That’s right, instead of laying off thousands of additional workers and requiring steep give backs in employee wages, Delta might consider selling all of its assets off piece by piece to the competition. This would especially make sense as Delta’s restructuring is dependent on steady fuel prices and, at this point, airlines can expect to pay even more for fuel in 2006 than they did last year. Kiss that recovery plan goodbye!
Once the airline business is sold, AirElite should be all that is left of Delta. The “new” company can thrive as the business aviation market is booming. The writing is on the wall for the airlines as further consolidation, retrenchment, and big time price pressure will remain. Indeed, once Virgin America gets official government approval to fly, its fleet of 105 modern Airbus jets will have much more appeal to passengers than Delta’s aging fleet. One more reason for Delta to get out of the commercial airline business now.
Is my recommendation radical? Yes, it is. Delta, however, is in too much of a hole to ever recover. Better to realize that now when their assets have some value than to wait until what they have slips away forever. By that time, even AirElite may get dragged down and suffer.


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EOS Airlines’ $6500 Roundtrip Airfare

EOS Airlines’ $6500 Roundtrip Airfare
Word Count:
373
Summary:
The venerable SST was retired in June of 2003 after nearly 35 years of service. In its place is a void that has yet to be filled. EOS Airlines, with a fleet of custom outfitted Boeing 757 aircraft is attempting to fill that void. Can they pull it off? The smart money is on the business traveler seeking to arrive in London or New York refreshed and ready to get down to serious business.

Keywords:
EOS Airlines, SST, Air France, British Airways, Gulfstream 550, business jet, corporate jet, business travel, corporate aviation, NBAA, National Business Aviation Association, Concorde, Boeing, Airbus

Article Body:
This just in: EOS Airlines, an upstart air carrier operating flights between New York’s JFK Airport and London’s Stanstead Airport has slashed their fares. For just $5000 round trip passengers can now fly the premium jet carrier and save a bundle. It gets even better than this: purchase one round trip ticket and a companion can fly for free; restrictions apply. Has the airline world gone crazy, or is EOS onto something? Read on for all the amazing details.
On October 25, 2005, EOS Airlines’ “official” inaugural flight took off one week after a series of pre-inaugural flights. Directed toward the business traveler, EOS operates custom outfitted Boeing 757 aircraft with seating for just 48 passengers. EOS, which means “Greek goddess of the dawn”, is offering a level of service unlike any other in the industry.
If you book a flight on EOS Airlines, here is what you can expect, besides paying a premium price:
<li>48 passenger lumbar support seating; every person receives 21 square feet of personal space [individualized suites] for a combined work/rest/dining area;
<li>Convertible seats that can be easily changed into a 78 inch long bed; cashmere blanket and Tempur-Pedic® pillow included;
<li>Extra large carry on bins;
<li>Lighting and laptop outlets for each station;
<li>An onboard library to peruse the latest books and videos;
<li>On demand food and beverage service comparable to what passengers receive on a corporate jet.
While the price certainly seems steep, keep in mind that prices rival what passengers had paid on Air France’s and British Airway’s super sonic transport [SST] Concorde before it was pulled from the market in June of 2003. In lieu of a jet that can match the SST’s speed, EOS has created a level of service and comfort that exceeds the Concorde. In other words, EOS Airlines is attempting to fill a void created when the SST was pulled from the market.
As with any new air carrier, success is never guaranteed. However, by concentrating on business travelers who frequent the NY to London “bridge” EOS Airlines just may have found a special place for itself within the business community. With no new SST on the horizon, privately held EOS has created a viable alternative to business jet travel and at a price far lower than chartering a Gulfstream 550.