COTTONWOOD HEIGHTS — Almost 20 years after disrupting the staid world of U.S. airline service with the launch of JetBlue, Utah native and serial air travel entrepreneur David Neeleman is back with another project.
And once again, he’s looking to shake things up.
On Friday, Neeleman announced the official name of his new carrier, Breeze Aviation, which will also be headquartered in Utah. The move completes a circle that brings Neeleman back to the place where he grew up and also made his first moves into the airline business.
While rumors of the new effort have been circulating for months under the “Moxy” moniker, the company locked down its brand and is moving forward with a timetable aiming to have planes in the air by the end of this year.
“Add a car, add a hotel, cancel a flight, make changes, it will all be there at your fingertips. Completely hassle-free flying.” — David Neeleman, air travel entrepreneur
Breeze will be the fifth carrier startup for a guy who’s built a reputation for being something of a market oracle when it comes to the airline industry. Neeleman’s previous endeavors include Utah-based Morris Air (acquired by Southwest in 1993), WestJet (currently the No. 2 Canadian carrier), JetBlue and Azul (currently No. 3 among Brazilian domestic carriers).
In an interview with the Deseret News, Neeleman said the impetus behind his continued interest in airline startups boils down to a penchant for recognizing opportunity, and acting on it.
“I never started an airline just to start an airline,” Neeleman said. “Right now, we see some pretty gaping holes in the industry.”
While Breeze has not yet announced potential routes, Neeleman’s plan is to identify and leverage nonstop flights between currently underserved airports. Right now, most major carriers require passengers traveling to and from second-tier airports to connect with a regional hub, then travel on to their ultimate destination. Breeze, Neeleman said, is looking to fill in the connection gaps left by an increasingly hub-focused system.
And, he thinks it can be done in a way that scores a win-win for passengers.
“We can cut the fare in half and get them there faster,” Neeleman said. “And we’re going to do it in a completely new way.”
That new approach, according to Neeleman, will prioritize a customer-centric system focused on making all the ins and outs of air travel, well, a breeze. That will include taking a page from the success of marketplace titans like Uber and Amazon, with an app-based toolkit that will allow passengers to find tickets, change or update travel plans, and add other travel necessities like rental cars and/or accommodations without ever having to deal with a customer service network.
“The goal is to have our customers ... never having to speak with anybody, if they don’t want to,” Neeleman said. “Add a car, add a hotel, cancel a flight, make changes, it will all be there at your fingertips. Completely hassle-free flying.”
And Neeleman has a track record for bringing big innovations into the realm of air travel. During a presentation at the recent Silicon Slopes Tech Summit in Salt Lake City, Neeleman noted that while Southwest Airlines is credited by the Smithsonian Institute as pioneering e-ticketless travel, the technology was actually first launched by his debut airline, Morris Air, and became the property of Southwest after the acquisition deal. JetBlue — which pioneered free, in-flight live television programming — and Azul launched service in dozens of Brazilian cities that had previously gone without an airline connection.
Breeze has ordered 60 brand-new Airbus 220-300 aircraft, with deliveries beginning in April 2021, and has leased 30 Embraer 195 aircraft from Azul, which will be delivered starting May 2020. The company said the A220 is ideally suited for nonstop flights between mid-size markets that Breeze expects to serve while the E195s can cost-effectively connect smaller markets.
Neeleman’s latest startup has already earned support from state leaders, with the Governor’s Office of Economic Development announcing a post-performance tax rebate package for the company late last year. The package could earn Breeze as much as $1.1 million in tax rebates on plans to make over $3 million in capital investments and hire about 370 new employees. At this point, Neeleman said he does not anticipate Breeze will be providing service in or out of Salt Lake City International Airport, but other Utah airports may be in the running for new routes.
“Twenty years ago, we brought humanity back to the airline industry with JetBlue,” Neeleman said in a statement. “Today, we’re excited to introduce plans for ‘the world’s nicest airline.’”