Avelo Airlines has just placed a massive aircraft order, for a plane that no other US airline has ordered. This is pretty exciting, if you ask me!
Continue reading: Wow: Avelo Airlines Orders Up To 100 Embraer E195-E2s
Share your questions, experiences, and thoughts below.
Why? Avelo is an American LCC in the year of 2025 which means they have razor thin margins and an uncertain future. Used 73Gs and 738s are dirt cheap, and yes the E95-E2s have better margins but the capital outlay to get 50 new planes is substantial. Seems a bad idea
The E2 is not going to work at other US airlines so glad to see Embraer selling them to Avelo.
The E2 is small enough that it might allow Avelo to fit in below the ULCCs and LCCs that use larger aircraft including the 321NEO.
The CASM on the larger E2s is quite good and the short field performance might allow some airports to gain service that larger aircraft cannot do.
Unlike its evil competitor MX, Avelo did the smart thing and chose the proper small mainline jet and not the piece of dog waste A220.
The question is where are they going to fly those planes where Avelo isn't the sites of the US4 and can be served with a regular schedule? 2x per week isn't going to cut it.
Seems there's going to be a fight within the ULCC space, with the legacies having their own army, with maybe one or maybe two winners at the end. Without a hub structure there's a limit on how many direct routes can be served profitably and with a somewhat regular schedule.
What about the additional costs of any tariffs. This may make the cost of the aircraft prohibitive.
If the ULCC carrier can survive the few years needed until they have a viable fleet of 10-15 aircraft to subvert mainline SCOPE clauses… the leadership of Avelo should be able to walk away with some nice golden parachutes, if not some investment capital from a future divestment of the carrier.
New planes are not cheap, and in essence this is a fleet order “Hell Marry,” to attract a suitable solution to the ULCC business model’s failure. A solution being and out of the box and ready
A) 717, 737-700, A220 replacement fleet.
B) A certificate with a fleet suitable for merge
C) A product ready to slot into mainline operators regional divisions directly or indirectly
They're using them for Ice deportation flights so how does that make this a good thing
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Just wondering how many of these new planes will be used for consumers versus deportation flights?♂️
Hopefully by 27 the vast majority of illegals will be gone when the new planes arrive.
Boycott ICE Air ... I hope they stop flying before they ever take delivery of any new aircraft ...