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While Covid-19 has grounded most flights from major airlines, Eastern has found a way to keep busy, working in partnership with the U.S. State Department to help bring U.S. citisens stranded in Central and South America home.
While Covid-19 has grounded most flights from major airlines, Eastern has found a way to keep busy, working in partnership with the U.S. State Department to help bring U.S. citisens stranded in Central and South America home. (Photo: Courtesy Eastern Airlines)

The New Airline Bringing Thousands of Americans Home

Eastern Airlines relaunched in January with a plan to fly adventurous millennials to underserved locales. Then the pandemic hit, and the company had to get creative.

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While Covid-19 has grounded most flights from major airlines, Eastern has found a way to keep busy, working in partnership with the U.S. State Department to help bring U.S. citisens stranded in Central and South America home.
(Photo: Courtesy Eastern Airlines)

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When returned to the skies in January, the newly revived brand didn鈥檛 know听that a global pandemic would soon halt nearly all air travel around the world. Yet while COVID-19 has grounded most flights from major airlines, Eastern has found a way to keep busy, working in partnership with the State Department to help bring听stranded U.S. citizens听home from听Central and South America.听

For those who remember, the name Eastern Air Lines (formerly spelled as such) sparks听memories of the golden age of air travel. A prominent player for most of the 20th century, the Miami-based airline听hit its peak in the 1950s before bankruptcy grounded its fleet in 1991. An initial听, in 2015, was short-lived, but in听January, Eastern returned with a flight from Guayaquil, Ecuador, to New York City, along with a whole new for the 21st century. The airline planned to introduce its next flight, from New York Cityto Georgetown, Guyana, in mid-March, and another route to Cabo San Lucas, Mexico, later this year.听

In January, Eastern relaunched with a flight from Guayaquil, Ecuador, to New York, along with a whole new look for the 21st century.
In January, Eastern relaunched with a flight from Guayaquil, Ecuador, to New York, along with a whole new look for the 21st century. (Courtesy Eastern Airlines)

Then the pandemic hit, and Eastern had to re-strategize. As airports around the world began to close, thousands of American tourists became . The State Department reached out to Eastern to help get citizens home from Guyana after the airline successfully flew听charters听to return medical students based in Grenada and Panama City to the U.S. in early March.听The airline then starteda repatriation flight from Georgetown to Miami听on March 13. This came just as the State Department launched a on March 19, ordering a plan for听government-funded charter flightsto听beconducted by commercial airlines. Repatriated passengers would听be expected to听eventually 听upon their return.

Eastern saw an opportunity. Unlike that are repatriation flights and determining fares based on an agreement听with听the federal听government, Eastern听sets its听own fares and only works with the听government to determine how many passengers to expect on each flight. Its repatriation flights cost up to $2,000 one-way, which CEO Steve Harfst听says is because the airline flies the planes from the U.S. empty, so passengers are essentially paying for a round-trip ticket. The cost is relatively comparable to听other airlines, with examples that include a $1,000 United from Lima, Peru, to Houston, and nearly $1,500 from Marrakech, Morocco, to any of ten听U.S. cities via various airlines, according to .听

Since Eastern鈥檚听inaugural flight, it has returned听17,013 passengers听on 102 flights from 15 countries across Central and South America, including Peru, Argentina, and Nicaragua. It has听also flown 3,412 non-American travelers from the U.S. to their home countries.听On average, repatriation flights have been 68 percent full, and the airline hasn鈥檛 turned a significant profit. 鈥淥n some of the flights, we鈥檝e lost money. Some of the flights, we haven鈥檛. On average听we鈥檙e probably just barely above breakeven,鈥 Harfst says. 鈥淲e make a commitment to fly the flight, so we鈥檙e somewhat taking a risk and believing that the U.S. embassy is being real with the numbers [of passengers] that they expect. But if 30 people showed up, we鈥檇 still fly the plane.鈥澨

Coming from a fledgling airline with fewer than 200 employees, this initiative is surprising. Before the pandemic, Eastern was banking on business from a specific demographic: adventurous millennials. Calling itself the 鈥渆xplorer brand,鈥 it hoped that a combination of budget fares to underserved adventure locales, a liberal baggage policy (one bag of up to 70 pounds free of charge), and smart marketing would win over a generation that prides itself on spending money on experiences, not stuff. Eastern鈥檚 2018 internal study deemed Guayaquil, Georgetown, and Cabo San Lucas up-and-coming South American adventure destinations.

鈥淲e make a commitment to fly the flight, so we鈥檙e somewhat taking a risk and believing that the U.S. embassy is being real with the numbers [of passengers] that they expect,鈥澨鼿arfst says.

But some weren鈥檛 so convinced that the approach of tapping into such a specific market would work. 鈥淚t could be tough to sustain a business with such a narrow focus,鈥 says Lori Ranson, a senior analyst at the Sydney-based . She points to Air France鈥檚 attempt in 2017 to target younger travelers with its now defunct subsidiary,听,听through things like budget fares, colorful seats, and casual flight-attendant attire.听However, Harfst says these are 鈥渁irline frills鈥澨齮hat don鈥檛 add value to a traveler鈥檚 experience, adding that Eastern wants to provide 鈥渉assle-free service鈥澨齠or its passengers.

In February, before the pandemic hit, Harfst told 国产吃瓜黑料 that he anticipated Eastern鈥檚 flights would be 50 to 70 percent less expensive than other airlines, citing cost-cutting measures like operating wide-body aircraft that allow for more seating and luggage. (JetBlue does not have wide-body aircraft, though other airlines, like American and United, do.) The company also owns its fleet. (According to a 2018 听by the Centre for Aviation, half of the world鈥檚 commercial planes are leased.)听Ranson noted that the company鈥檚 spending costs would need to be 鈥渨ell below its competitors鈥 in order to meet its proposed fares.听But over the course of February and early March, Eastern鈥檚 fares were comparable with its听competition.听

When we contacted Harfst听again this month and asked if those听cheaper fares would still be possible following the pandemic, Harfst says he didn鈥檛 know, though he expects all airline fares to increase after a complete return to travel. While there may be initial deals to attract fliers back, airlines will eventually have to make up for lost revenue. 鈥淭he costs [of flying] don鈥檛 change,鈥 he says. 鈥淚t鈥檚听fair to assume that, regardless of what does happen, fares are going to be more expensive.鈥澨

As for the future, Harfst believes that Eastern could come out ahead of other airlines post-pandemic. As a small business, it received support from the CARES Act, but Harfst says its low-cost structure makes the company more resilient. He notes that as a startup company with fewer鈥攁nd newer鈥攅mployees, it doesn鈥檛 have to cover the higher compensation of tenured members (though he adds that Eastern pays its employees a competitive wage). In addition to lower labor costs and the fact that it owns its own planes, Harfst says听the shrinking travel industry will result in more underserved markets, allowing for Eastern to pursue its original business model. 鈥淲e think that there鈥檒l be domestic opportunities that will be open to us, as routes and markets are either abandoned or left with less capacity,鈥 he says, citing the airline鈥檚听recent application for a domestic nonstop flight from New York to San Diego. 鈥淭here are still people all around the world who will need to or want to travel that now won鈥檛听have that opportunity鈥攐r if they do, it鈥檚 a two- or three-stop flight. Those small markets are still very attractive to a company like Eastern.鈥

Lead Photo: Courtesy Eastern Airlines

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