Former United CFO raises $125 million for U.S. start-up airline company
A new low-cost carrier was introduced and it is initiated by the former United Airlines’ executive. It raises at least $125 million in funding and plans so they can begin with the service before the year ends. The company is operating as the Houston Air Holding Inc. and it’s getting ready to enter the game and eventually transform this newly created charter airline.
According to Andrew Levy, a co-founder of the Allegiant Travel Co., they will be focusing on offering a non-stop flight commencing from the secondary airports to midsize and eventually huge markets. This project is noted as the second new United States airline company planning to start its services in 2020. On another statement that Andrew Levy released, he said that their company is going to grow at a measured pace. He has a wide knowledge of the industry itself as he’s travel company also specializes in leisure travel. It starts to cater from smaller markets to vacation destinations like Florida and Las Vegas. With that, together with the whole team, they are going to build a company that is similar to Allegiant, slowly but with assurance and steadily. Their foundation is far more capital than they think their consumer needs.
This company is going to be a Houston-based and will make us of Boeing Co. 737-800s. It is scheduled to receive its first plane next week coming from General Electric Co.’s aircraft lessor. It will be used for charter services over the summer. It will then be reconfigured with approximately 189 seats for short-haul passenger service later on.
If you’re aware, Andrew Levy is going through a different path if you were to compare it from David Neeleman’s track, who is also planning to debut his new Breeze Airways later this year. It will make use of Embraer SA E-195 aircraft. Aircraft is leased from his most recent start-up carrier, Azul Brazilian Airlines.
Similarly, the newly introduced carriers will both focus on markets which they viewed as lacking adequate air service after the United States airline consolidation happened over the past decade. The only difference seen now is that Andrew Levy is more focused on shorter-distance routes that connect smaller airports with domestic leisure markets while Breeze Airways plans to offer longer-haul service depending on A220’s range on routes without nonstop competition.
Lastly, the funds were raised from various private equity firms, individuals and even family offices. For now, the company is still in the process of exploring names for the airline and which airport they will serve.