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JetBlue Founder Buys 60 Airbus A220 for New US Startup
July 17, 2018
•
2 min read
JetBlue Founder Buys 60 Airbus A220 for New US Startup
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A new US airline will launch with the Airbus A220 as its first airplane. A group of investors lead by David Neeleman, the founder of JetBlue, signed a memorandum of understanding to purchase 60 A220-300 aircraft. The plane is the rebranded C Series aircraft manufactured by Bombardier.
The announcement was made today via press release. The airline has been dubbed "Moxy," which is so far only a working name for the new startup. The purchase is worth $5.5B at the A220 list price of $91.5 million, but airlines typically get discounts for such large orders.
On the sidelines of the Farnborough airshow, a Moxy source indicated the airline would not be ready for launch until 2021, when the planes would begin to roll off the line. These A220s will be manufactured in Mobile, Alabama. Airbus has long manufactured the A320 there.
"It's a fantastic platform and will allow us to fly several routes from smaller markets, wherever those markets may be," the source said.
The purchase comes on the heels of JetBlue ordering the same quantity of aircraft on Monday. That deals a blow to rival Embraer, the Brazilian planemaker whose commercial airplane programs Boeing just bought in response to Airbus buying the C Series program from Canada's Bombardier. The competing Embraer E2 jet is being trounced by the Airbus A220 in US sales; Delta Airlines has 75 A220-100 aircraft on order, which it plans to introduce into service this year. Other A220 operators worldwide include SWISS, Air Baltic, and Korean.
"The A220 will enable us to serve thinner routes in comfort without compromising cost, especially on longer-range missions. With deliveries starting in 2021, we will have ample time to assemble a world-class management team and another winning business model," Neeleman said in a statement. The JetBlue founder is the controlling shareholder of Azul, and an investor in TAP Portugal.
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"This [startup] decision for the A220 as the platform on which to launch their new business model is a testament to the passenger appeal and operating economics of this outstanding aircraft," said Eric Schulz, Chief Commercial Officer for Airbus. "This commitment confirms the important role the A220 aircraft now occupies in our Airbus single-aisle portfolio."
Today's announcement is the first by Airbus for any US airline at the Farnborough show.
Featured image by PA Images via Getty Images
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Rewards Rate
| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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| 3X | Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com. |
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You may be eligible for as high as 100,000 Membership Rewards® Points after spending $6,000 in eligible purchases on your new Card in your first 6 months of Membership. Welcome offers vary and you may not be eligible for an offer.As High As 100,000 points. Find Out Your Offer.Annual Fee
$325Recommended Credit
Credit ranges are a variation of FICO® Score 8, one of many types of credit scores lenders may use when considering your credit card application.Excellent to Good
Why We Chose It
There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)Pros
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- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
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- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.