Former United CFO Andrew Levy is hoping to raise $100 million by June 2019, to launch a new, ultra-low-cost airline in the United States. If the plan is successful, the airline could take up to skies as soon as in 2019.
In 2018, Levy acquired a charter airline, XTRA Airways, which had one Boeing 737 aircraft and an air operator’s certificate. Now, he is raising funds to turn the airline into an ultra-low-cost carrier, which would serve secondary airports but provide a different experience than other ULCCs in the U.S., Levy told WBUR, a Boston radio station.
If a plan to raise $100 million by June 2019 goes successfully, the airline could start service by late 2019 or early 2020, with a fleet of approximately five aircraft.
Meanwhile, in the U.S. there is another low-cost, start-up airline in the making. The airline, known as Moxy Airways, is driven by an initial investment of $100 million and backed by a group of investors led by David Neeleman.
Neeleman is a founder of the U.S. low-cost carrier JetBlue (JBLU) , co-owner of Portugal’s flag carrier TAP Air Portugal, and controlling shareholder in Brazilian Azul Airlines. During Farnborough International Airshow 2018, Moxy placed an order for 60 Airbus A220 jets, delivery starting from 2021.