Breeze Airways' Business Plan

“When you start from scratch like this you can do things that no one has been able to do, and I know Breeze can do this so much better than everyone else."

Every graphic was (re)created by me

David Neeleman, founder of Morris Air (later integrated into Southwest), WestJet, JetBlue, and Azul, is about to start with his newest and arguably most interesting start-up. Breeze Airways, formerly branded under the name of Moxy, will serve un(der)served routes in the US, but also plans to go international.

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Breeze Airways is going to be a low-cost carrier, just like many others in the US already are (Allegiant, Spirit, Southwest, …). So what is going to set them apart from all the others?
One important factor is their so-called “super app” which allows their customers to do everything they need for their flight within the app. While this seems quite normal the app will also offer services for when you arrive, like rental car services, the booking of hotel rooms, and so on.

As mentioned above, the airline will serve many unsaturated or even unserved routes and markets. According to simpleflying.com, 80% of the airlines’ initial routes will be without any competitor. While this seems weird at first glance, this also has a reason. Many of the routes Breeze will initially serve are connections with very low demand, hence no other airline with bigger aircraft could serve those markets profitably, or follows the business model of being a hub airline, and connecting most of its flights through one of the the the their hubs.

Breeze will create direct and faster flights by building up a net of low-demand routes, that will shine when it comes to being non-stop rather than with an extra leg via a connection hub by a major airline.
In order to serve those routes, the airline plans to acquire up to 120 A220-300’s build in Mobile, Alabama. Following the current plan, the airline will receive 1 per month for the next 10 years, starting October of this year, even though, this rate will most likely ramp up over time, given the success of the start-up. For building its core routes up in the beginning and to start earlier, the airline will use E190s, 4 of which they already leased. At the end of 2021, Breeze wants to operate 15 of this type. Those, however, will be phased out relatively soon, making space for the more modern, efficient, and comfortable aircraft, the A220.

In a flightglobal.com interview, David Neeleman showed his excitement for this type. Besides, being able to operate regional routes the E190s will have build-up, the aircraft opens up a new spectrum of routes thanks to its “7 hours of range”. This range is partly available thanks to him, as he partnered up with Airbus to fit his A220-300s with auxiliary fuel tanks.

Routes Neeleman has already in his sight to operate in the future, which also includes “long-hauls”. According to him, “that means we can go from the northeast US into Europe, and Florida into South America. We can go into Hawaii from anywhere west of Kansas. We can do things no other plane [in that market segment] can do.” In interviews he gave a while ago, he confirmed plans to operate flights from Florida to Brazil but also eyed flights to Europe, similar to what JetBlue is about to do. For those kinds of flights, he highlighted the ability of the aircraft “being able to quickly reconfigure the aircraft cabin to include, someday, a luxury first-class cabin with lie-flat seats.”

When serving smaller airports, airlines are often limited to shorter routes because of runway length limitations. This problem was significantly diminished by the A220, making the A220-100, even though not the model Breeze will use, takeoff and land at London City Airport. This gives a good general idea, of how short the runway for an A220 can be at MTOW.

All this is why the airline chose the A220 to be the long-term workhorse for the airline. "We can’t fly an E195 for three and a half hours and make money doing that. But we can fly an A220 for six or seven hours and make money doing that,” he said.

At the moment, Breeze has 150 employees but looks to increase this number significantly in a short amount of time, following the fleet growth accordingly. In order to do so, Breeze partnered up with local universities, from which they’ll get young staff and will allow them to start into the work-life without student debt.
After all, Breeze seems like a very promising airline with a very unique and interesting business model. The fast rate of vaccinations and market recovery in the US further play into the hands of Breeze and its CEO David Neeleman, who seems to be close to starting another major airline, making it 5 in total.

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Thanks for reading
Maximilian

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David neelman won’t have a break, any time soon, will he?

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He need them green papers ;)

I don’t know if those long-haul routes will work out for them they should worry about their US routes the most.

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That’s what they plan to do in the beginning. With their E190s they have no choice anyway. In the long run, plans are to do those long hauls in a similar way like airlines will do with A321LRs, as the A220 features similar performance.
Here is once more what he said in regards to that, and I believe he asked Airbus for a range upgrade for a reason, so they probably already have plans that would be profitable:

According to him, “that means we can go from the northeast US into Europe and Florida into South America. We can go into Hawaii from anywhere west of Kansas. We can do things no other plane [in that market segment] can do.

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I mean at some point he will most likely stop working and retire, so this is most likely his last airline start-up I estimate

Breaking news,

David neelman starts new airline called:

NeelmanAir

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I think he is rather on a blue streak (JetBlue, Azul and Breeze (identity and colors are all blue, also Breeze → Sea))

That’s true, very true

Not the full set of routes just yet, but there’s confirmation of some destinations:

  • First route is Tampa (TPA) to Charleston (CHS)

Will add:

  • Pittsburgh (PIT)
  • Nashville (BNA)
  • New Orleans (MSY)

"At launch, Breeze will fly 49 direct routes from 15 cities, beginning with Tampa to Charleston, [South] Carolina; other cities include Pittsburgh, Nashville, and New Orleans. Think Rust Belt to Sun Belt.”

Also A220s will have a business class… or something.

“Breeze won’t pile people on top of one another, won’t slam them with excessive fees, and will offer three seating categories: Nice, Nicer, and Nicest—the last a value-priced business-class option on the A220s”

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Breeze Airways Confirmed (aka approved) to fly to the following airports. They still have to get slots, but they CAN fly to these airports. Any airport with a “*” next to it means they officially have slots.:

  • Albany
  • Atlanta
  • Atlantic City
  • Baltimore
  • Bradley Windsor Locks
  • Charleston
  • Charlotte
  • Columbia
  • Daytona Beach
  • Fort Lauderdale
  • Fort Myers
  • Greensboro
  • Greenville/Spartanburg
  • Harrisburg
  • Islip*
  • Jacksonville
  • Macon
  • Miami
  • Myrtle Beach
  • New York - JFK
  • Newburgh
  • Norfolk
  • Orlando*
  • Philadelphia
  • Providence
  • Raleigh
  • Richmond
  • Savannah
  • Tallahassee
  • Tampa*
  • Washington Dulles
  • West Palm Beach
  • White Plains

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Wow that’s a lot o_o

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ISP VIBES!!! @Balloonchaser come look

I don’t think R means they have an official slot though. According to @Ishrion’s tweet, it means it’s a MX base for them.

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Ahhhh that’s what that means 🤔

Oh and yeah, they officially received their Air Carrier Certificate and now are awaiting approval to transport passengers from the DOT.

I can’t wait for that!!

I can’t describe just how much I admire David Neeleman, he is unstoppable. Think of how many jobs this man has created over the last 30 years.

Breeze is going to be a real force to be reckoned with.

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So no west coast yet

I agree. He is so successful. If I wanted to be any aviation entrepreneur, I would be him. He founded pretty much all of my somewhat favorite airlines. Of course my favorite, JetBlue, along with WestJet (my favorite in Canada), and Azul. He also helped a lot with Southwest getting founded, and they are my third favorite US airline.

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they’re selling tickets next week and their first route is from TPA-CHS