JetBlue's Founder May Start a New US Airline
David Neeleman, who founded four airlines including JetBlue and is now a major investor in TAP Portugal, is raising money to launch a new airline in the US, according to a report from trade publication Airline Weekly.
According to the report the airline, dubbed Moxy (incidentally like Marriott's hotel brand, Moxy), has an order for 60 Bombardier CS300 aircraft which it would begin taking delivery of in 2020 and is attempting to raise $100 million to begin services that same year.
The business model would revolve around offering point-to-point service between smaller, secondary airports like New York City's regional Stewart Airport (SWF), Los Angeles's Hollywood Burbank Airport (BUR) and Chicago's Gary/Chicago International Airport (GYY). However, unlike ultra-low-cost carriers like Allegiant and Spirit which already focus on selling point-to-point flights, Moxy would offer the superior service passengers have gotten accustomed to with JetBlue — think generous legroom and free Wi-Fi.
The C Series aircraft, which is now officially owned by Airbus, was designed to allow airlines to fly more point-to-point traffic where a larger aircraft would be too much metal, and regional jets don't have the range or comfort — perfect for what Moxy is reportedly trying to do. The planes are also quite roomy, offering some of the most comfortable economy cabins in the skies, at least if airlines don't cram seats in them. And Neeleman's most famous creation, JetBlue, has more legroom on average than its competitors.
This is not the first major report of Neeleman potentially starting a new airline in the US. In July 2017, Neeleman registered the name Azura Airways as a new business entity in Connecticut and even began seeking recruitment, but denied the claim he was launching a new airline.
When TPG interviewed Neeleman this past Friday and inquired about future plans, including a potential new airline in the US, Neeleman said he needs to focus on capitalizing TAP Portugal and Azul Airlines as they go through a transformation. "I'm not a spring chicken anymore," he added. (He is in fact 58 — which is pretty much the average age for an airline CEO in the US.)
However, Neeleman then went on to discuss the opportunity he sees in the US: connecting smaller cities you can't fly non-stop to — much like the reported Moxy. "There's opportunities here, no doubt, but there's challenges too. The big guys are pretty competitive now and they've got a lot of money, and the pilot situation is critical now thanks to the US Congress," he said, referring to a debate on pilot shortage and how to solve it.
Neeleman wasn't immediately available for comment when TPG reached out for more details.
Robert W. Mann, an airline industry analyst and former executive at American Airlines, Pan Am and TWA, told TPG, "David's track record shows he is a creative, high-energy individual, trying to found and pull together the personal, global airline alliance that Branson was unable to," a reference to Richard Branson's attempt to create a network of Virgin airline brands around the world.
An order for 60 CS300 aircraft would make Moxy the second-largest C Series customer after Delta, which is acquiring 75 of the smaller CS100 model. We've reached out to Bombardier, but haven't received confirmation of the order from them at time of publication.
TPG featured card
at American Express's secure site
Terms & restrictions apply. See rates & fees.
| 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. |
| 4X | 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. |
| 5X | New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App. |
| 3X | Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines. |
| 2X | Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com. |
| 1X | Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases. |
Pros
- Valuable dining and food-related credits
- Flexible rewards with airline and hotel transfer partners
- Multiple travel and purchase protections
- No foreign transaction fees
- Access to Amex Offers for additional savings (enrollment required)
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 $8,000 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.
- New! Earn 5X Membership Rewards® points on prepaid hotel stays booked through AmexTravel.com or the Amex Travel App.
- Earn 3X Membership Rewards® points on flights booked through AmexTravel.com, the Amex Travel App, or purchased directly from airlines.
- Earn 2X Membership Rewards® points on prepaid car rentals booked through AmexTravel.com or the Amex Travel App and cruises booked and paid through AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- Pay It® lets you tap in the American Express® App to quickly pay for small purchase amounts throughout the month and still earn rewards the way you usually do. Plan It® gives you the option to split up big purchases into equal monthly payments with a fixed fee. You’ll know upfront exactly how much you’ll pay.
- Updated! $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub (including Seamless), Buffalo Wild Wings, Five Guys, The Cheesecake Factory, and Wonder. This can be an annual savings of up to $120. Enrollment required.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year at over 10,000 qualifying U.S. Resy restaurants after you pay for eligible purchases with the American Express® Gold Card. That’s up to $50 in statement credits semi-annually. Enrollment required.
- $84 Dunkin' Credit: Earn up to $7 in monthly statement credits after you pay with the American Express® Gold Card at U.S. Dunkin’ locations. Enrollment required.
- $120 Uber Cash on Gold: Enjoy up to $120 in Uber Cash annually with your Gold Card. Just add your Card to your Uber account and you'll get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an Amex Card for your transaction.
- New! As an American Express® Gold Card Member, you can enjoy complimentary Hertz Five Star® Status. Enjoy benefits like skipping the counter at select locations, adding an additional driver at no additional cost*, and vehicle upgrades**. Benefit enrollment and Hertz Gold+ registration are required. *Additional drivers must meet standard rental qualifications and must be a spouse or domestic partner to qualify as complimentary. Other additional drivers subject to fees. **Benefits are subject to availability and vary by location. Additional Hertz program Terms and Conditions including age restrictions apply.
- Take advantage of a $100 credit towards eligible charges* at over 1,300 upscale hotels worldwide when you book The Hotel Collection through AmexTravel.com or the Amex Travel App **. *Eligible charges vary by property. **The Hotel Collection requires a two-night minimum stay.
- Book your travel through the Amex Travel App with added peace of mind – backed by American Express® service and support. Only for American Express® Card Members.
- Whenever you need us, we're here. Our Member Services team will ensure you are taken care of. From lost Card replacement to statement questions, we are available to help 24/7.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.