[Breeze] Airways
#101
Line Holder
Joined APC: Mar 2017
Posts: 58
This would be the most likely scenario in my opinion. It solves all the problems. Find a struggling regional carrier that is shrinking due to pilot attrition, maybe one that doesn't have pay scales based on the number of seats, and transition out of the regional airline business slowly.
At this point, you are adding a new aircraft type to your certificate, slowly adding airplanes and crews with a new business model, all while shutting down the fee for departure model and letting contracts with major airlines just expire.
At this point, you are adding a new aircraft type to your certificate, slowly adding airplanes and crews with a new business model, all while shutting down the fee for departure model and letting contracts with major airlines just expire.
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#102
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,569
Moxy is planned to be a startup with a new operating certificate. He wants a clean sheet airline. Untangling current agreements and disposing of a existing fleet would be far more expensive than starting from scratch with all first year employees. The delivery schedule on the airframes is timed to allow the certification process to be complete before the airframes arrive.
#103
Line Holder
Joined APC: Aug 2016
Position: Pilot ;)
Posts: 91
Domestic norwegian air
Moxy is planned to be a startup with a new operating certificate. He wants a clean sheet airline. Untangling current agreements and disposing of a existing fleet would be far more expensive than starting from scratch with all first year employees. The delivery schedule on the airframes is timed to allow the certification process to be complete before the airframes arrive.
His claim is, USA needs competition because demand has risen while there have been no new Airlines entering service. See: Apples and Oranges. If he was to compare Apples to Apple, he would compare the DEMAND of air travel with the SUPPLY of ASMs. In fact, as of the past couple years, ASM growth has outpaced actual Passenger Miles flown. This is because Spirit, Allegiant, and Frontier have been growing at double digit growth rates. The legacy carriers, Southwest, Alaska and Hawaiian are also growing Domestic market significantly.
What this guy does should be criminal. He is nothing more than another Lorenzo or Icahn. He creates new companies with Year 1 labor, new planes, sweetheart deals, no unions ETC. This creates an unfair operating cost advantage. The airline will offer predatory pricing to squeeze into the market and take jobs away from established carriers who offer passengers and employees stability. Sometime before the notes on the aircraft come due, heavy checks need to be performed ($$$), labor groups unionize, etc, He will dump his stock and move on to the next one - Rinse and Repeat.
Don't believe me? First Morris Air then Jetblue then Azul next Moxy. Look at why Jetblue lags the market in yield. They've never had to worry about the costs that every other airline has: Union wages, heavy maintenance costs, aircraft notes etc. So, they've never had to control costs and watch capacity discipline like everybody else. Now they're struggling to catch up with ideas such as Mint, 321LRs etc.
#104
I hope this bottom feeder Neeleman fails miserably with this venture. His M.O. is to start airlines and sell them before the $H!T hits the fan. Now, His whole case for needing a new airline is "No new entrants" in the market. He compares Apples to Oranges to make a sensational argument for his company.
His claim is, USA needs competition because demand has risen while there have been no new Airlines entering service. See: Apples and Oranges. If he was to compare Apples to Apple, he would compare the DEMAND of air travel with the SUPPLY of ASMs. In fact, as of the past couple years, ASM growth has outpaced actual Passenger Miles flown. This is because Spirit, Allegiant, and Frontier have been growing at double digit growth rates. The legacy carriers, Southwest, Alaska and Hawaiian are also growing Domestic market significantly.
What this guy does should be criminal. He is nothing more than another Lorenzo or Icahn. He creates new companies with Year 1 labor, new planes, sweetheart deals, no unions ETC. This creates an unfair operating cost advantage. The airline will offer predatory pricing to squeeze into the market and take jobs away from established carriers who offer passengers and employees stability. Sometime before the notes on the aircraft come due, heavy checks need to be performed ($$$), labor groups unionize, etc, He will dump his stock and move on to the next one - Rinse and Repeat.
Don't believe me? First Morris Air then Jetblue then Azul next Moxy. Look at why Jetblue lags the market in yield. They've never had to worry about the costs that every other airline has: Union wages, heavy maintenance costs, aircraft notes etc. So, they've never had to control costs and watch capacity discipline like everybody else. Now they're struggling to catch up with ideas such as Mint, 321LRs etc.
His claim is, USA needs competition because demand has risen while there have been no new Airlines entering service. See: Apples and Oranges. If he was to compare Apples to Apple, he would compare the DEMAND of air travel with the SUPPLY of ASMs. In fact, as of the past couple years, ASM growth has outpaced actual Passenger Miles flown. This is because Spirit, Allegiant, and Frontier have been growing at double digit growth rates. The legacy carriers, Southwest, Alaska and Hawaiian are also growing Domestic market significantly.
What this guy does should be criminal. He is nothing more than another Lorenzo or Icahn. He creates new companies with Year 1 labor, new planes, sweetheart deals, no unions ETC. This creates an unfair operating cost advantage. The airline will offer predatory pricing to squeeze into the market and take jobs away from established carriers who offer passengers and employees stability. Sometime before the notes on the aircraft come due, heavy checks need to be performed ($$$), labor groups unionize, etc, He will dump his stock and move on to the next one - Rinse and Repeat.
Don't believe me? First Morris Air then Jetblue then Azul next Moxy. Look at why Jetblue lags the market in yield. They've never had to worry about the costs that every other airline has: Union wages, heavy maintenance costs, aircraft notes etc. So, they've never had to control costs and watch capacity discipline like everybody else. Now they're struggling to catch up with ideas such as Mint, 321LRs etc.
More and more regionals have “flows” to legacies and your not leaving unless it’s a very good job and commesurate with your Legacy job that’s “in the bag”.
I know there are people that love to say the pilot shortage is BS, but it isn’t. I live in a medium/large sized city in the US and our local corporate flight departments are really starting to see a shortage. It’s not going to get any better.
#105
Many pilots who have gotten out during the lost decade and in desk jobs have decided to jump back in. RTP has started up, as has Cadet programs. RJ FO starting pay has doubled.
The hiring boom really hasn’t fully hit. It is grinding away at the supply sources. At some point the shortage really will hit, and the airlines will have to take further, more drastic actions.
We live in interesting times.
#107
Given that this is not 10 years ago, by the time Moxy starts (24-36 months) he is going to have an extremely difficult time having an airline with anything other than competitive and legitimate pay rates. The days of offering some garbage (old Spirit contract) or current book Frontier are over. It’s not happening.
More and more regionals have “flows” to legacies and your not leaving unless it’s a very good job and commesurate with your Legacy job that’s “in the bag”.
I know there are people that love to say the pilot shortage is BS, but it isn’t. I live in a medium/large sized city in the US and our local corporate flight departments are really starting to see a shortage. It’s not going to get any better.
More and more regionals have “flows” to legacies and your not leaving unless it’s a very good job and commesurate with your Legacy job that’s “in the bag”.
I know there are people that love to say the pilot shortage is BS, but it isn’t. I live in a medium/large sized city in the US and our local corporate flight departments are really starting to see a shortage. It’s not going to get any better.
Yeah, he's not going to get away with going cheap on pilots, especially at a startup which needs smart, experienced people in the early days. Anybody who has startup captain qualifications has options (including possibly just staying at a comfortable regional).
#109
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,569
The above is simply not true. He will have no trouble finding pilots to staff the operation. He will offer a strong stock option package and wages well above the regionals. There are plenty of experienced pilots at the regionals who have a reason or two they are stuck there. They will flock to join Moxy.
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