US start-up has a lot of Moxy

Discussion
Founders

Neeleman is chairman of Azul and a co-owner of TAP Portugal. The Moxy business plan characterizes him as a “serial entrepreneur.”

In addition to Neeleman, Robert Milton, one-time CEO of Air Canada and a former chairman of United Continental Holdings, is a founding team member.

Others include Michael Lazarus, who served on the Azul board of directors; and Henri Coupron, head of his own consulting firm, Plane View Partners, and former CEO of International Lease Finance Corp. Coupron also previously held senior positions for the Seabury Group (consultants) and Airbus. He also is on the board of Azul.

Collectively, the people are principals of the Breeze Aviation Group, with Moxy being the proposed airline name.

“Moxy will deliver a door-to-door, fully digital, a-la-carte experience; passengers will breeze through secondary airports, customize their trip, sit in the widest seats and arrive faster,” the plan says.

The plan

The CS300 was chosen for its comfort and range. The aircraft has the widest seats in the business, exceeding the Airbus A320 and the Embraer E-Jet, which hold the previous narrow-body record.

Moxy also says the CS300 will have the lowest costs of any aircraft.

Moxy plans to serve secondary airports near metropolitan areas, a plan that appears patterned after Ryanair, where the term “near” sometimes is measured in scores of miles.

Providence (RI) near Boston, Stewart Airport north of New York City, Gary (IN) near Chicago and secondary airports near Charlotte (NC) and Concord (CA), north of San Francisco are among the airports Moxy may serve.

Any one of three cabin configurations and single- or up to four classes of service may be offered.

The ambitious plan shows airports across the United States that may be served within four years of start-up, which is initially set for 2020. Officials may try to accelerate this date, however.

The firm aircraft purchase agreement is targeted for the third quarter (perhaps at the Farnborough Air Show?).

Delivery slots

Moxy appears to be taking the delivery slots reserved for Republic Airways Holdings.

Republic is the US launch customer for the CS300, ordering the aircraft in 2009 at the Paris Air Show. The order was intended for Frontier Airlines, which was then owned by Holdings. Frontier was, at the time and still is, an exclusive A320 family operator.

The order spurred Airbus to launch the A320neo, which in turn caused Boeing to launch the 737 MAX.

Republic later sold Frontier, but the order staying with the holding company. Holdings later restructured in bankruptcy but retained the orders, to the bewilderment of industry observers. The regional jet airlines remaining within the Holdings structure cannot operate the aircraft under the pilot Scope Clause contracts with US major carriers.

The delivery schedule in the Moxy plans more or less match up well with the Republic delivery positions, according to the Airfinance Journal Fleet Tracker.

Although there was a suggestion that the Moxy order would fill the Mobile (AL) production plant, which is scheduled to open in 2020, for two years, this ignores reality that aircraft deliveries are spread over several years.

The Fleet Tracker indicates the scheduled deliveries to Delta Air Lines from 2020, the balance of its initial order for 75 aircraft. The first airplanes, which are scheduled for delivery this year, will come from Bombardier’s Montreal plant ( by that time, it will be Airbus Canada).

LNC assumes a mid-year start-up for the Mobile production, at a low rate initial production of 2/mo. Assuming an increase to 3/mo the following year and 4/mo the next year, there appears to still be room for orders from other US-carriers the plant is intended to serve.

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