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Eos Airlines could consider exit options late next year, said CEO Jack Williams. He said that his company might have six or seven airplanes in the air by then, which could trigger a discussion about an IPO or company sale.
The private New York-based business currently operates three all-business class flights between New York City’s JFK and London’s Stansted.
Eos, similar to MAXJet Airways, Silverjet Aviation, and L’Avion, is one of a new breed of airline that only sells business class seating to passengers.
”There is viral activity around Eos now,” said Williams, who ceased training for the famed Iditarod dog sled race on his Alaska dog farm to join the company in February. ”It’s the buzz of the city, in certain areas amongst a certain mindset.”
According to reports, some traditional airlines such as British Airways have taken note of these upstarts and are now considering a similar strategy.
Even so, mainstream players seeking to leverage existing volume discounts with corporate clients will not cannibalize Eos’s sales by forcing them to use existing or upcoming business-class services, said Williams, who has worked in senior management for both American Airlines and Royal Caribbean Cruises.
”People don’t like to be told to do something that they don’t want to do, and be threatened at the same time that if you don’t do it, we’ll cut you off.”
Instead, he said the entrance of larger players should benefit Eos because they will increase the profile of the type of service he sells. Williams said he did not know if a player such as British Airways would consider buying an established all-business class carrier such as his rather than building its own.
Eos was founded by David Spurlock, who formerly worked for British Airways as its director of strategy.
There may already by some merger and acquisition activity amongst these all-business class airlines. Recent reports have said that India’s Kingfisher Airlines may be bidding on one of four U.S.-based airlines in order to circumvent local regulations limiting who can fly between India and the U.S. While MaxJet has been identified as the most likely target, the company has publicly denied the rumor.
Williams said suitors have not approached him to date.
Eos had more than USD 30m in revenues last year; Williams said some USD 170m has been raised thus far.
A fourth round of financing is closing now, but Williams declined to say for how much it was. The company is outfitting a fourth plane now and has signed letters of intent for two more; Williams said it should be expanding the cities and continents it covers next year.
He said all of his current investors should be involved in the new round. These include Golden Gate Capital, Sutter Hill Ventures, and Maveron.
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