The small island of Bermuda may be home to the world’s most niche, luxury airline pretty soon. An airline startup named BermudAir has requested a foreign air carrier permit from the Department of Transportation (DOT), seeking to launch operations to U.S. destinations as soon as possible.

[BDA,BOS],[BDA,FLL],[BDA,HPN]

BermudAir will begin operations flying two leased Embraer E175 aircraft, with both formerly used in operation with Flybe. The two aircraft have already been transferred to Bermuda, suggesting the airline is well on its way to begin operations.

BermudAir has quite an interesting business model, with plans to outfit the E175s with only a business-class cabin carrying 30 passengers. This is a stark decrease in capacity compared to what they could offer—88 seats—should the entire plane be outfitted with economy seats.

The airline has announced plans to start operations with three routes:

• Bermuda (BDA) - Boston (BOS) — once per day, 6x per week
• Bermuda (BDA) - Fort Lauderdale (FLL) — once per day, 6x per week
• Bermuda (BDA) - White Plains (HPN) — twice daily, 6x per week.

The airline has already posted job openings across the internet looking to recruit, and as the Royal Gazette reports, the airline has stated on these platforms that “everything [we] do reflects the island’s unique characteristics and vibrant culture.”
 

Obviously, the airline isn’t intending to make a dent in market share or expand to become a large global player. Inherently, the airline is trying to target a certain demographic with only business class seats that may give them an edge over existing competition or bring new executives to Bermuda in search of a good business deal. 

Bermuda currently sees commercial service from eight airlines serving 11 destinations in total; the only competition BermudAir will face is its route to Boston which JetBlue currently flies. White Plains will face indirect competition through the form of New York traffic; American Airlines currently flies to New York John F. Kennedy Airport (JFK), along with Delta Air Lines and JetBlue. United flies seasonally to Newark (EWR), and JetBlue also flies to New York - LaGuardia (LGA).
 

It seems highly unlikely that if the idea comes to full fruition and BermudAir launches service, the airline will be successful. With 30 business class seats, there will be ample pitch for each passenger meaning from a profit perspective, the seats will be very expensive to compensate for the inefficient use of space. 

White Plans (HPN) is a rather strange choice of destination unless one considers the presence of insurance offices in Westchester County which aligns well with business dealings in Bermuda. The airline has to bank on these executives flying often and willing to pay a lot.

Other all-business-class airlines including La Compagnie have been successful and have been operational for 10+ years, although they serve high-demand markets between large cities. Bermuda is far from a high-demand market, so BermudAir certainly has its work cut out.