Monday, June 18, 2018

JetBlue's founder is reportedly raising $100 million to start a new low-cost airline

David Neeleman, the founder of JetBlue, WestJet, and Azul. 
(Associated Press)

JetBlue's founder, David Neeleman, is reportedly launching another low-cost airline in the US. According to the trade publication Airline Weekly, Neeleman's new venture is to be called Moxy and will be aimed at smaller secondary airports.

Moxy has already placed orders for 60 Bombardier CS300 airliners and is working to raise $100 million, Airline Weekly reported, citing people familiar with the venture.

Funding for the new airline is expected to come from several sources including the former Air Canada CEO Robert Milton, the former ILFC CEO Henri Courpron, and Neeleman himself.

Neeleman was not immediately available for comment.

Bombardier CS300.

According to the trade journal, Moxy plans to commence service in 2020 when Bombardier is to deliver the first of its new airliners. All 60 Bombardier jets are expected to be delivered by 2024.

Moxy will target smaller, lower-cost, secondary airports located near major metropolitan transportation hubs. These include the Stewart and Republic airports near New York City as well as airports in Milwaukee and Gary, Indiana, to service Chicago. Baltimore and Trenton, New Jersey, are also prospective destinations.

Should Moxy get off the ground, it would be latest in a long line of airline endeavors for the Brazilian-American serial entrepreneur. Neeleman helped found a series of successful airlines over the past three decades including Morris Air, which was sold to Southwest Airlines; WestJet; JetBlue; and Azul. He's also running Portugal's national airline, TAP. 

(Benjamin Zhang - Business Insider)

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