Former United Airlines Exec Plans to Launch New Airline

By Paul Riegler on 2 April 2019
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A Boeing 737 cockpit

A Boeing 737 cockpit

The former executive vice president and chief financial officer of United Airlines plans to launch a new U.S.-based ultra low-cost carrier this year.

Andrew Levy, who most recently served as United’s CFO as well as its executive vice president, also served as president of Allegiant Air for almost 14 years. Allegiant is one of three ultra low-cost carriers in the United States.

“There’s a lot of room for more airplane seats in the United States,“ Levy told old Here & Now, the NPR radio program, which first reported the news.

The basis of the new airline will be XTRA Airways, a former charter airline, which Levy acquired last August after which he sold all but one of its aircraft. Levy is seeking to raise $100 million to get the new airline off the ground and he expects to complete his fundraising by June of this year.

“We’re well on our way and expect to be done relatively quickly,” Levy told Here & Now.

Levy resigned from United in 2018, saying in a statement at the time that he planned to pursue more entrepreneurial pursuits.

The airline will distinguish itself by operating from lower-cost, second-tier airports and providing better service than its competition, currently Allegiant, Frontier, and Spirit, according to the prospectus for the company, which was viewed by Here & Now. It plans to have five aircraft in the air by the end of 2019 and 45 in its fleet by the end of 2023.

(Photo: Accura Media Group)

Accura News

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