Making Flying to Smaller Regional Airports Easier
The Regional airports in the United States have had a tough run over the last few years. The aviation industry has been rapidly changing dramatically over the last 20 years.
We have seen growth from the Major Airlines as they expand their routes to international destinations and provide code-share agreements with airlines in other countries making it easier for travelers to make it across the world.
With the expansion of long range, wide body aircraft the attention has been taken away from many small regional airports. These airports in the United States serve a great portion of the population that do not live near a large major airport. For some individuals the regional airports near their area do not provide routes that allow them to arrive to their final destination.
These travelers are forced to then travel to a larger hub airport to then connect on another aircraft to finally reach to their destination. And if the time between the two flights is hours away then the individual would have wasted time waiting for the connection that the time that would have been saved with a direct route.
Breeze Airways the newest airline to have been announced is stating to provide to those airports that have been underserved over the last few years. The airline has been in development for quite some time and with the official release of the name and potential livery projections are that we may see flights starting by the end of the year, all dependent on the approval of the FAA.
David Neeleman, Aviation Entrepreneuer
On February 7th, 2020 David Neeleman Announced the official name of the new airline which will be the 5th airline that David has Started. David Neeleman has shown his ability to begin and develop airlines at a rapid rate. Morris Air was started in Utah by David and the routes and fleet were sold to Southwest who has allowed them to develop to where the are today.
Canada’s Westjet took on competing with Air Canada and has put up quite the fight. They have been able to develop a large fan base with their ability to provide incredible service to their domestic and international destinations.
JetBlue which started in the year 2000 has developed to over 100 routes. Their presence throughout the east coast has allowed them to create a profitable business within their early years of operation.
The airline is looking to start operations with a fleet of 30 Embraer E195 Jets that will be leased from Azul Airlines, a Brazilian Airlines which was also started by Neeleman.
The Interviews that Neeleman participated in provided us with insight on his business goals and strategy. The idea behind Breeze is directly to fly to the airports that many of the larger major airlines are overlooking. He is not anticipating that Breeze will have much competition as he will be looking to create routes that would typically not be possible without at least one or more stops. With hundreds and hundreds of city pairs there are many routes that have been demanding direct flights to eliminate travelling across the country to then go back.
“It’s really just trying to find a cluster. You can’t be popping all over the place. We’re working on a couple of airports and we’ll see who actually comes to the to the party,” Neeleman said. “We don’t want to spread ourselves too thin.”
Starting with the end in mind.
The vision behind the company aside from directly serving to the expressed wishes of the flying public is to also ensure that their satisfaction is met. When starting a new airline gaining trust is often one of the greatest hurdles to overcome with the public as many traveler are quite loyal to their airline.
Breeze Airways aims to make the flight experience enjoyable and Easy. This is expressed in the logo with the “EZ” in the lighter color under the Checkmark. This is the focal point of the brand in their goal to make the experience enjoyable from the technology that is used to the service on board.
Neeleman has expressed his vision for Breeze to lead the market with extraordinary customer service and satisfaction. JetBlue to this date is highly rated as one of the highest in customer satisfaction in the states which is something that they take immense pride in.
“20 years ago, we brought humanity back to the airline industry with JetBlue,” Neeleman said in a statement. “Today, we’re excited to introduce plans for ‘the World’s Nicest Airline’.”
No Plans for IPO?
With David Neeleman having a strong business understanding and ability to develop profitably companies, what is the potential of Breeze becoming a publicly traded company. JetBlue, Westjet, Azul, are all companies that are currently being publicly traded.
Jetblue Airways Corp (NYSE: JBLU) launched their stock on the market in 2020 and experienced a strong rally within the first 5 years. The stock since then has leveled out and has began to regain strength overtime and maturation. The stock currently trades just under $20 and reports revenues over 8.09B.
Azul (NYSE: AZUL) became public back in 2017 starting off at the price of around $20 a share and has since climbed up to the current price of just under $40 at the time of writing this article. With the massive and rapid growth of the middle class in South American countries as tourism rates rise Azul has been able to meet the demands of the travelers.
Westjet Airlines is currently listed on the Toronto Stock Exchange. The company is currently trading publicly around the range of $30 a share. In recent news Onex Corps’s (TO: ONEX) has proposed an acquisition of Westjet Airlines. Air Canada in retaliation files a challenge offer of C$3.5B to outbid Onex in purchasing its current largest direct competitor.
Now my question to you is having seen the previous history of how David Neeleman has been able to start airlines and then launched their IPO to the public market can one through deductive reasoning begin to hypothesis that there could potentially be a new Airline IPO to come to the market in the near future.
Chris Sloan, Airways Senior Correspondent in a interview asks … “THIS IS A COMPANY THAT YOU FORESEE WILL REMAIN PRIVATE FOR THE FORESEEABLE FUTURE?”
David responds “Yes, it doesn’t need to go public ever I don’t think. For now, we intend on keeping it private.”
With little competition in the market that Breeze aims to serve should the demand meet the forecast, they have a great path ahead of them for whats to come. Wishing the best to David Neeleman and his endeavors ahead on his newest Airline Breeze.
Sources:
https://airwaysmag.com/interview/david-neeleman-breeze/
https://www.travelandleisure.com/airlines-airports/breeze-airways-new-budget-airline
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