Start-up Breeze Airways drops bid for Compass Airlines’ operating certificate, still plans 2021 launch

Aug 19, 2020

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.

David Neeleman’s latest venture Breeze Airways remains on track to launch commercial passenger flights in 2021 even after deciding to drop a plan to acquire defunct Compass Airlines operating certificate.

Salt Lake City-based Breeze will launch in 2021 under its own operating certificate, spokesperson Gareth Edmondson-Jones told TPG. A certificate is a necessary prerequisite to flying scheduled passenger flights in the U.S.

While he did not provide a specific timeline, the airline maintains its plan to initially lease 15 used Embraer E190s before it begins taking delivery of 60 new Airbus A220-300s in August 2021.

Sign up for the free daily TPG newsletter for more airline news!

The confirmation of that timeline follows the decision to drop plans to acquire the certificate of Compass, which Breeze notified the Department of Transportation of on Tuesday. The airline applied to transfer the certificate in July, three months after Compass ceased flying.

The Air Line Pilots Association (ALPA) labor union and Sun Country Airlines objected to Breeze’s plan to acquire the certificate. ALPA argued that if the transfer was approved, its existing labor contract with Compass needed to be honored. Sun Country argued that Breeze did not meet the regulator’s funding level requirements.

Breeze did not respond to the separate objections before withdrawing its application for the certificate.

Related: Neeleman’s new airline Breeze targets May launch, with the JetBlue founder planning coast-to-coast flights

Breeze is the latest airline founded by industry mogul Neeleman. His previous carriers include JetBlue Airways and Morris Air in the U.S., Azul in Brazil, and WestJet in Canada.

The airline has outlined plans to initially offer point-to-point flights aimed at leisure travelers between 15 cities on the East Coast and in the Midwest, South and Texas. The model is similar to that of Allegiant Air, where Breeze commercial chief Lukas Johnson spent eight years before joining the start-up carrier.

Later plans include flights across the U.S. between the East Coast and California on A220s.

Breeze will release additional details of its launch in September, Edmondson-Jones said.

Related: JetBlue founder’s new U.S. airline now has a name: Breeze Airways

Featured image courtesy of Breeze Airways.

Chase Sapphire Preferred® Card

WELCOME OFFER: 80,000 Points

TPG'S BONUS VALUATION*: $1,600

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
  • 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.
Intro APR on Purchases
N/A
Regular APR
15.99%-22.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.