Breeze Airways is gearing up for a launch. Its founder and CEO, David Neeleman, spoke about the airline’s schedules. While he did not name specifics, Mr. Neeleman indicated that 80% of the airline’s summer schedules have no nonstop competition. This is an impressive number that could spell the recipe for success.
Breeze plans summer schedule
Speaking at the World Aviation Festival, Mr. Neeleman was asked about the summer schedule available seat miles (ASMs) and generating traffic. He stated the following:
“80% of the ASMs on our summer schedule have no nonstop competition. So, what happens in that case is that you generate maybe 6, 7, 8, up to 10 times more traffic than you actually take from everyone else. If you’re in a really small market, we’re not talking about just medium-sized markets, we’re talking about small markets, where maybe you connect through a hub and it would have taken you three hours to get there. Now we can get you there in an hour and 15 minutes.”
Breeze stays true to its mission
Breeze had consistently stated its focus was building up a route network that targeted smaller and medium-sized cities that had either lost air service over the last few years amid market consolidation or else had too little air service with a focus on nonstop point-to-point routes.
From a revenue perspective, having fewer competitors on a route is usually better. Assuming there is enough demand to service those routes, airlines can typically get a revenue premium for nonstop routes over connecting itineraries. While Breeze Airways is still planning to focus on offering lower-cost travel, it could perhaps price out some nonstop itineraries slightly higher than connecting itineraries in the hope that passengers will pay a slight premium for a nonstop operation.
Not planning to compete with JetBlue
Mr. Neeleman’s most well-known venture was JetBlue. Currently, a large airline out of New York, Boston, Florida, and California, the airline has made a reputation for offering mostly point-to-point services. It has also sought to provide a better customer experience than other airlines, and Mr. Neeleman is looking to replicate some of the customer satisfaction.
When asked if Breeze would end up overlap or competing with JetBlue, Mr. Neeleman said the following:
“I don’t think there’s going to be any overlap. There’s so many opportunities out there. JetBlue is a great airline. I don’t necessarily want to compete against them ever because now they’ve got a great product and great people. There are so many things that we can do. I don’t envision any overlap with JetBlue.”
The first routes will be shorter as Breeze Airways focuses on flying Embraer aircraft to start until it gets more Airbus A220s. The Embraer E190s and E195s, according to Mr. Neeleman, are better on shorter flights as, on longer flights, the aircraft’s fuel burn increases trip costs, which is something the carrier is seeking to avoid. The airline is running proving runs with the Embraer aircraft in advance of getting full regulatory approval to fly.
There’s nothing like a cool Breeze in the morning! We’re thrilled to see one of the proving runs of @BreezeAirways today at our airport. The new airline brought in their E195 (fleet will also include A220s) once commercial services start this year. pic.twitter.com/Ox41fevhih
— Orlando International Airport (@MCO) March 31, 2021
More announcements should come soon. In an email message, Breeze teased that it would reveal its first nonstop destinations and promotions soon. As the world waits for an announcement from Breeze Airways, it is pretty much set that the airline will be flying routes that most airlines currently are not flying.
Are you excited about Breeze Airways? Let us know in the comments!
