In 2018, David Neeleman announced a new carrier would be entering the US market from 2021. Code-named "Moxy," 60 A220s were ordered. In December, the order was firmed up. Let's take a look at Moxy Airways (Airlines?)
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The Man
Moxy is not David Neeleman's first venture into the airline industry. He previously founded JetBlue, Azul Brazilian Airlines, and is an investor of TAP Air Portugal.
As CEO of JetBlue, Neeleman was famous for taking a customer-friendly approach. He would routinely fly in the back of the plane on their non-reclining seats.
His investments have proven to be successful. JetBlue is a major carrier on the East Coast of the United States. Azul has grown from regional routes to transatlantic flights. And TAP Air Portugal just took delivery of the first commercial A330-900neo.
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The Plane
With this startup, David Neeleman announced an order of 60 Airbus A220-300s.
Here is Neeleman's statement on the A220:
"The A220-300 is the right airplane for a new airline that will be focused on passenger service and satisfaction. With a low cost of operation and spacious cabin, the A220 will allow us to provide passengers with lower fares and a high quality, comfortable flying experience."
David Neeleman, Founder of Moxy
The Airbus A220 was founded as the Bombardier CSeries. Bombardier sold a majority stake of the program to Airbus in 2017. This came after Boeing pushed for 300% tariffs on the aircraft.
The A220 fits a niche market of being larger than a regional jet, but smaller than traditional narrowbodies like the 737MAX and A320neo family. At the same time, the A220 is not restricted to regional routes. With a range of up to 3,200 nautical miles, the A220 can comfortably cross the continental United States or, at the top end of its range, a shorter transatlantic hop.
David Neeleman has made it no secret he wants to use these planes for its maximum capacity. After committing to the aircraft, Neeleman said:
"We can fly across the North Atlantic, down into the Cribbean, and into Brazil"
David Neeleman, Founder of Moxy
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Unsurprisingly, Moxy is expected to partner with some other of David Neeleman's ventures in Azul and TAP Air Portugal.
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The Airline
Moxy is expected to operate point-to-point flights from medium-sized cities. The carrier has indicated it will offer a product that will appeal to customers with more legroom and fewer add-on fees.
By connecting previously unlinked city pairs with a new, efficient aircraft, Moxy has the potential to turn an impressive profit.
The US market is dominated by four major carriers. American, Delta, United, and Southwest carry over 80% of the domestic market in the US. The minority 20% is made up of Alaska Airlines, Allegiant Air, Frontier Airlines, JetBlue, Hawaiian Airlines, and Spirit Airlines.
Allegiant, Frontier, and Spirit Airlines operate as low-cost carriers. However, they are also known for their add-on fees and restrictive legroom.
Alaska Airlines, JetBlue, and Hawaiian operate as more regionally focused airlines. JetBlue has a major presence in the Boston, New York, and Fort Lauderdale markets. Hawaiian Airlines operate exclusively from Hawaii.
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This leaves four options for most travelers between the coasts: American, Delta, United, and Southwest. Southwest does not have any transatlantic partners. For most passengers in the central United States, American, Delta, and United are the dominant players for flights to Europe or South America.
Moxy could shake up the industry. By offering passengers in smaller, less-connected cities reasonably priced fares to destinations in Europe and South America, Moxy would tap into a market where they could capture a significant market share.
We're excited to see the launch of this airline. Do you want to fly Moxy? Let us know in the comments below!