With the rapid growth in demand for air travel as the United States resumes from the Covid-19 pandemic, Andrew Levy considers it the best time to launch a new airline.
Levy, CEO of Burbank, California-based low-cost carrier Avelo, will begin flying to 11 airports and markets in the western United States in late April with little direct competition.
“I see the light at the end of the tunnel and it’s coming soon,” Levy told CNBC while sitting in Avero’s office. “We are in the perfect place to get started here, and it’s good to be up and running, especially during the peak summer season.”
Levy originally wanted to launch Avelo a year ago, but the pandemic quickly ended those plans. That’s why Levy and his team spent last year making sure Avero was ready when air travel showed signs of returning. According to the International Air Transport Association, the pandemic has caused more than $ 380 billion in damage to the aviation industry.
Avero’s strategy is to offer low fares to travelers near markets and airports where airlines have little service. This includes places like Grand Junction, Colorado. Eugene, Oregon and Ogden, Utah. These are the markets or regions where travelers usually need to route their travels through hubs in big cities such as Denver and Salt Lake City.
Levy sees great potential for misusing negatives associated with larger airports.
“It takes a long time to get there. There are long lines, lots of headaches and annoyances,” he said. “A small airport is, to be honest, just a good experience and I think all customers agree with it.”
Levy knows that, if done properly, a small airport strategy can benefit emerging airlines. In the late 1990s, he helped Allegiant Air launch services from a small airport such as Rockford, Illinois, about an hour northwest of Chicago’s O’Hare Airport. After years of helping Allegiant expand, Levy moved to United Airlines. So he moved up the ranks and eventually became CFO before leaving in 2018.
Susand Nofrio, an aviation consultant FTI Consulting, believes that Allegiant’s success can be replicated.
“Legacy airlines are focusing on leisure growth from hubs, which leaves many opportunities for airlines like Avero to grow unchallenged in poorly serviced markets. “I will,” said Donofrio.
For now, Levy’s focus is on a clean, clean launch that often hinders start-ups. Avero will take off with a fleet of three Boeing 737s and plans to add three more this summer. Levy said he bought
And with a low-cost-focused CEO fitting, the fact that Levy bought two planes at a discounted price from others in the industry trying to unload their planes to save millions of dollars. I am enjoying.
“The two we bought were probably about one-third lower than Covid, so we were in the $ 15 million discount range between the two planes,” Levy said.
Avelo, the new airline, thinks it’s the best time to start flying as more travel
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