Is Avelo starting flights as travel picks up?

As the demand for the air travel is increasing at a quick rate, U.S. is reopening from the Covid-19 pandemic. Andrew Levy finds it the perfect time for launching a new airline.

Avelo’s CEO Levy is a low-cost carrier based Burbank, Calif which will be starting the flight in the end of April to eleven airports  markets in the western part of U.S. where there is little .

Levy mentioned that “We see light at the end of the tunnel and it is coming soon. “We stand in a great place to get started here and especially being up and running for the summer peak season, which should be good.”

Notably, Levy wanted to join the launch Avelo a year ago, but the pandemic has become a barrier in fulfilling those plans. However, Levy and his team spend last year by ensuring Avelo must be ready when the travel showed signs of coming back. As per the International Air Travel Association, the Covid scenario has cost the airlines more than $380 billion.

On the other hand, the prime aim of Avelo’s is to offer low-fares to travelers in the markets or the ones near airports which have little airline services. However, this involves place like the Grand Junction, Colo: Eugene, Ore. And Ogden, Utah. Basically, these are markets or regions which the travelers typically have for routing the trips through the bigger cities hubs like Denver or Salt Lake City.

Undoubtedly, Levy finds a massive potential which is exploiting the negatives which perfectly goes with the larger airports.

He mentioned, “It takes a long time to get there, you have long lines and there are a lot of headaches and hassles. Small airports, quite honestly, are just simply a better experience and I think all customers would agree with that.”

Levy is much aware of the small airport strategies which can pay off for the start-up airlines, if it is not properly executed. However, in the late 1990s, he supported Allegiant Airlines launch services out of the small airports like Rockford, Ill., that is roughly an hour northwest of Chicago’s O’Hare Airport.

Soon, after several years of supports Allegiant grows its operations, Levy moved on to the united Airlines. Before leaving in 2018, he rose through the ranks and finally became the CFO.

Susan Donofrio which is an aviation consultant FTI Consulting thinks that Avelo is capable of replicating Allegiant’s success.

Donofrio mentioned, “While the legacy airlines are focused on leisure growth out of their hubs, this has left a lot of opportunity on the table for airlines like Avelo to grow unchallenged in underserved markets.”

For the timing, Levy’s focusing on the clean launch without hiccups that may often hinder start-up companies. Avelo is now taking off with a fleet of three boeing 737s and plans of adding three more in this summer.

Being a CEO Levy is currently focusing on the low costs, he is enjoying the fact that he has brought two airlines from the industru that is looking for unload aircraft for saving millions of dollars.

Levy exclaimed, “The two we purchased were probably about a third lower (in price) than they would have been ahead of Covid, so that represented, between the two planes, in the range of a $15 million discount.”

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