JetBlue Founder David Neeleman Orders 60 Planes for New U.S. Airline
by Barbara Peterson /
It’s official: David Neeleman, best known as the founder and former chief executive of JetBlue Airways, is backing a new airline in the U.S., confirming this week that the nascent operation has committed to buy up to 60 jets from Airbus’ newly christened A220 series.
The news was announced by Airbus at the Farnborough Air Show outside of London. While Neeleman has thus far declined to comment officially on the prospects, he will re-enter the domestic airline business, as the jet manufacturer’s statement included a quote attributed to the entrepreneur.
“After years of U.S. airline consolidation, the conditions are improving for a new generation of U.S. airline to emerge, focused on passenger service and satisfaction,” said Neeleman, who was identified as a “majority investor” in the new venture.
He added that “the A220 will enable us to serve thinner routes in comfort without compromising cost, especially on longer-range missions.” That is a reference to the proposed business model of the startup, which is using the working name of Moxy, and would serve smaller markets with point-to-point flights rather than routing them through connecting hubs.
Whatever happens, the new airline will not take flight for at least three years, as plane deliveries are scheduled to start in 2021. Neeleman’s statement also mentioned that the time lag gives him and his fellow investors “ample time to assemble a world-class management team and another winning business model” — indicating that he may not plan to take an active role in running the airline.
Still to be decided are the markets the new carrier will choose for its launch, but early indications are that they will include airports that have been ignored or abandoned by the major lines, such as New York Stewart International Airport in Newburgh, New York; Trenton-Mercer Airport in New Jersey; and Ontario International Airport in southern California.
One reason for the three-year wait is that several other airlines have gotten in their orders for the new plane type ahead of Moxy, including JetBlue, which just placed an order, also for 60 jets of the A220-300 series with deliveries set to begin in 2020. JetBlue plans to use the new fuel-efficient planes to replace the 100-passenger Embraer 190 series, which the carrier added to its fleet to complement its workhorse, the larger Airbus A320.
Airbus recently acquired the new plane type from Bombardier, where it was known as the CS series, with several different variants ranging from about 100-150 seats in standard layouts.
In recent comments, JetBlue executives extolled the benefits of the larger A220s, which are not only more economical to operate, but have a longer range than the 190s and will be deployed on routes like White Plains, New York, to Florida; Boston to Austin and New Orleans; and even on longer transcontinental and Caribbean routes.