JetBlue Founder Buys 60 Airbus A220 for New US Startup
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
“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 of an Airbus A220-300 during the opening day of the Farnborough International Airshow by Andrew Matthews/PA Images via Getty Images
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees