JetBlue’s CEO Just Started Another Airline

JetBlue Airways and Azul Airlines founder, David Neeleman, has announced that Salt Lake City, Utah will be the base for his newest airline, codenamed “Moxy.”

Utah Bound

Neeleman said in a statement, “We’re excited to announce our investment to make Utah our headquarters. Utah’s exceptional workforce and business environment will ensure that we have all the support needed to provide exceptional customer service for our new startup.”

The decision to base the airline in Salt Lake City is interesting. Neeleman may be trying to right a wrong after basing JetBlue in the very expensive New York, something that many of his successors have complained about. Luke Johnson, Moxy’s Chief Commercial Officer, explained the decision in a statement, “People can be working and living everywhere. It doesn’t make sense to be trying to hire in the highest cost of living places. It doesn’t make a ton of sense for a competitive business.” The one issue they have run into with basing operations in Utah is that there are not many executives with airline experience in the state, so the carrier is expected to keep its operations team on the east coast.

New Beginnings With Embraer

The new headquarters will create 400 jobs and generate a $3.2 million capital investment, with nearly $30 million in wages and over $5 million in tax revenue expected. Moxy is set to launch in late 2020 with Embraer E190s, with plans to shift to the A220 starting in 2021. The airline has 60 A220s on order.

Moxy will operate a point-to-point route system, similar to that of Spirit Airlines, to underserved markets. However, they have yet to reveal when and where these routes will be. Furthermore, Neeleman has described Moxy as a “technology company that happens to fly airplanes,” and explained that he wants to focus on using technology to boost the customer experience.

It’s Still Early Days

Although launch plans look promising, Moxy is still working towards obtaining its Air Operators Certificate from the FAA, which can be a major task in itself. Airlines in the past have struggled with lengthy approvals, while others have turned to buying out an existing airline’s certificate to get started.

More details about the airline’s route network and the official name will be announced next year.

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