A new US airline

Dave Neeleman , the founder of JetBlue has just announced a new airlines based on an initial fleet of 60 Bombardier CS300s. Tthe CS300 supports five-across seating (fewer middle seats) and 19 inch seat width (versus 18 on an Airbus narrowbody and 17 on a Boeing narrowbody). Swiss Airlines and air Baltic operates them with 145 seats, and Korean air with 127 seats.

The Bombardier CS300 can fly short transatlantics from the Northeast. So the long range plan includes Providence to Ireland the U.K. as well as Spain and France. They could offer four classes of service including a lie flat premium cabin.

Shannon (Limerick) [Intl], County Clare, Munster, IE nautical miles to (ranked by busiest medium and small airport in Northeast)
2,912 nm PIT Pittsburgh [Intl], PA, US
2,591 nm BDL Hartford/Springfield (Windsor Locks) [Bradley Intl], CT, US
2,768 nm BUF Buffalo [Buffalo Niagara Intl], NY, US
2,554 nm PVD Providence [Theodore Francis Green State Airport], RI, US
2,925 nm RIC Richmond [Intl], VA, US
2,909 nm ORF Norfolk [Intl], VA, US
2,601 nm ALB Albany [Intl], NY, US
2,724 nm ROC Rochester [Greater Rochester Intl], NY, US
2,511 nm MHT Manchester, NH, US
2,670 nm SYR Syracuse [Syracuse Hancock Intl], NY, US
2,446 nm PWM Portland [Intl Jetport], ME, US
2,659 nm HPN White Plains [Westchester County Airport], NY, US
2,648 nm ISP Islip (New York, Ronkonkoma) [Long Island MacArthur Airport], NY, US
2,518 nm BTV Burlington [Intl], VT, US
2,801 nm MDT Harrisburg [Intl], PA, US
2,751 nm ACY Atlantic City [Intl], NJ, US
2,737 nm ABE Allentown [Lehigh Valley Intl], PA, US

The CS300 could reach Shannon, Ireland from Pittsburgh, but it is unlikely to go the extra 335 nmi to Stansted airport, outside of London. BDL and PVD are the two busiest airports (other than large ones) and also are relatively close to Europe

Norwegian Air Shuttle tried single aisle jets from Providence to several places in Europe, but with a crowded 189 seat configuration in a jet where Southwest only puts 175 seats. They weren't very popular except in the summer and were scaled back to a single year round flight to Dublin and seasonal flights to Belfast–International, Shannon, Cork, Edinburgh, Fort-de-France, Pointe-à-Pitre.

Domestically this new airline will fly to smaller airports like Mesa, Arizona rather than Phoenix, Concord not Charlotte, and Fort Worth Meacham. Even Cleveland would be served via Burke Lakefront Airport.

The biggest challenge starting a new airline – beyond credibility and capital – is access to congested airports where the major airlines collude with local governments to lock up gates. This strategy largely sidesteps that.

Nice! Very excited to see a new airline. The mergers have taken the industry way too far into consolidation hell for the travellers. Especially someone who has the means to start with 60 jets. That's a very large opening. I hope they continue to grow, and get to compete.

Thanks very much for the info, Paco.

Quote: Pacomartin

The biggest challenge starting a new airline – beyond credibility and capital – is access to congested airports where the major airlines collude with local governments to lock up gates. This strategy largely sidesteps that.

Proven strategy, that is how Southworst was built. Will be interesting to watch. We have returned to just 4 trunk carriers for a reason, the airline business is an awful business and I do believe anyone entering it needs their head examined. Capital and labor intensive. Fuel can go up. Unions can still be killers. And we are talking about an industry where the net retained profit is still <$0 IIRC.

OTOH, there is a market. From the list it appears they are doing a smart thing and building from the northeast then out.

Quote: beachbumbabs

Nice! Very excited to see a new airline. The mergers have taken the industry way too far into consolidation hell for the travellers. Especially someone who has the means to start with 60 jets. That's a very large opening. I hope they continue to grow, and get to compete.

In February 2007, JetBlue faced a crisis, when a snowstorm hit the Northeast and Midwest, throwing the airline's operations into chaos. Because JetBlue followed the practice of never canceling flights, it desisted from calling flights off, even when the ice storm hit and the airline was forced to keep several planes on the ground. Because of this, passengers were kept waiting at the airports for their flights to take off. In some cases, passengers who had already boarded their planes were kept waiting on the tarmac for several hours and were not allowed to disembark. However, after all this, the airline was eventually forced to cancel 1700 flights because of prevailing weather conditions. The fiasco reportedly cost JetBlue $30 million.

Following the February 2007 incident , JetBlue's board of directors replaced founder and Chief Executive Officer David Neeleman with Dave Barger. He had politicked the board, while Neeleman was busy publicly apologizing. Barger's ascendancy caused widespread demoralization in the ranks. He became JetBlue's new Chief Executive Officer on May 10, 2007. Neeleman, the company's founder and largest individual investor, became a nonexecutive chairman as a result of the change.

Neelman's return to running an airlines, may end up with him taking over JetBlue again.

If you look at the TransAtlantic traffic we see that 50% of the flights and 40% of the seats are on B757s and B767. Nearly all of these flights could theoretically be replaced by the A321neo (long range) which has a range of over 4500 mil and a two class seating capacity of 206 seats. American and Delta have ordered 100 of these jets apiece, while United has ordered over 160 of the B737 max 9/10s.

This new airline will try and capture some of this market with the CS300 with a 3800 mile range.

Quote: Stats TransAtlantic December 2017 (US airlines only); percentages by seats

05.4% Boeing 757-200 -------- 160 average seats -------- 3,366 miles
24.8% Boeing 767-300/300ER -------- 179 -------- 3,378
10.0% Boeing 767-400/ER -------- 243 -------- 4,010
40.1% -------- 188 --------

06.9% Airbus Industrie A330-200 -------- 244 -------- 4,131
12.6% Airbus Industrie A330-300 -------- 291 -------- 4,171
19.5% -------- 272 --------

25.5% Boeing 777-200ER/200LR/233LR -------- 269 -------- 4,667
07.3% Boeing 777-300/300ER/333ER -------- 325 -------- 4,810
32.7% -------- 280 --------

3.4% B787-800 Dreamliner -------- 221 -------- 4,775
4.3% B787-900 Dreamliner -------- 272 -------- 5,142
7.6% -------- 247 --------

Quote: Pacomartin

Neelman's return to running an airlines, may end up with him taking over JetBlue again.

Maybe, JBLU does need to expand eventually. Organic growth does not cut it in that biz, with the exception of LUV.

But I think the guy is a founder, not a great CEO. He needs to get something up and running, then leave and do it again.

Another exclusive airline, Aura, is starting flights. This one also features Bombardier aircraft configured in an all luxury configuration. The business plan requires people to join a club for $100/month to give them access to select prices.

Regular and first class seats





The plan is to connect 6 major airports initially, and expand to other airports and the haunts of the wealthy.

Quote: Pacomartin

Another exclusive airline, Aura, is starting flights. This one also features Bombardier aircraft configured in an all luxury configuration. The business plan requires people to join a club for $100/month to give them access to select prices.

Investor money headed down the drain.

Quote: AZDuffman

Investor money headed down the drain.

They are offering the following initial prices for subscribers for 21 seats on jet. The 8 top seats are more than double.Free 120 lbs over two pieces of luggage. They fly out of private airports or executive hangers at larger airports.

https://www.flyaura.com/

$100 / month subscriber fee for founding member, $250 a month afterwards

Off Peak one way fares - $100 extra for peak
$280 CHICAGO ATLANTA
$330 CHICAGO NYC
$330 SOUTH FLORIDA ATLANTA
$330 NYC ATLANTA
$330 LOS ANGELES DENVER
$380 SOUTH FLORIDA NYC
$480 CHICAGO SOUTH FLORIDA
$580 CHICAGO LOS ANGELES

One way fare from Chicago ORD to NYC (LGA) on Delta is $400 plus $70 for two bags which is more than Aurora even at peak fees. (Not counting subscription price)