The founder of JetBlue is raising money for another low-cost airline.
David Neeleman is a big name in the airline industry. He founded such international low-cost operators as Canada’s WestJet, the west coast’s Morris Air, Brazil’s Azul SA, and of course, JetBlue.
Now Neeleman has reportedly raised $100 million to get started on a new discount US airline, and he plans to launch it by 2020.
He’s tentatively called the new airline Moxy Airways, with the key to its success being a new, highly efficient airplane that only flies from airports off the beaten path.
Larger airports can slap airlines with tons of fees and taxes while also forcing them to wait to land or take off, burning valuable fuel and wasting everyone’s time. But smaller airports, like those found in Providence Rhode Island and Burbank California, can save an airline big bucks when it comes to gas and usage fees.
The second part of Moxy’s plan is to use the all-new Bombardier CS300 jet. Neeleman has ordered 60 of the 737-sized aircraft thanks to some truly impressive capabilities over currently flying jet planes.
The CS300 is said to lower overall costs per seat mile of each occupant by 15%, including a 20% reduction in fuel costs thanks to a pair of highly efficient Pratt & Whitney turbofans. Maintenance is also expected to be vastly simpler thanks to designs that make it easier for maintenance workers to access key areas of the plane’s structure, reducing maintenance costs by up to 25%.
They’ll also be four times quieter than similar-sized jets, which is a huge boon for airports in downtown areas.
Add all these savings up and there’s a potential to beat the big airlines at their own game, which is exactly what Neeleman has made his millions doing for nearly three decades.
Moxy isn’t expected to be as barebones as something like Spirit Airlines either. They’ll still offer reasonable legroom and free wifi, but like JetBlue they’ll charge you for extra bags, assigned seating, and snacks.
Neeleman is seeking financing from Chinese investors to fund his first 18 aircraft, along with putting up some of his own considerable wealth. If all goes to plan, Moxy Airways will take to the skies sometime in 2020.