AU MD FLYER

I thought that XTRA Airways was "absorbed" by SWIFT AIR LLC.???

Now this new plan is announced, so did Swift Air only just "absorb" / "acquire" the material assets (planes, parts, mtc. equipment, etc.) from XTRA Airways?

Sounds like XTRA Airways kept their FAA 121 Charter Certificate, but as I understand it...the FAA 121 Charter approval would NOT also allow starting initial FAA 121 "daily" (point-to-point) flying on a repetitive basis? This would require a whole new approval from the FAA, including observations and route checks.

So, it appears this is a new operation for XTRA Airways ONLY, and Swift Air would NOT be involved in this new adventure at all?

Correct?

Also, sounds like they plan on using used B-737's, so are the
-800's becoming more affordable?

It will be very interesting what level of pay and benefits will be offered by XTRA to attract "qualified" pilots in this demanding and changing hiring environment. In fact, just read where regional PSA (AA wholly-owned) just got a pay raise for F/O's and Captains, AND they have a flow to AA as well! Therefore, Envoy and Piedmont will have to follow suit to keep the new F/O's coming in.

AU
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New Ultra-Low-Cost Airline Led By Former United Executive Aims To Take Off This Year
06:13


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April 02, 2019
Seth Kaplan


"There's a lot of room for more airplane seats in the United States," says Andrew Levy, CEO of XTRA Airways. The airline could carry passengers as America's newest "ultra-low-cost carrier" by late this year. Pictured: A passenger aircraft takes off from Hong Kong International Airport. (Kin Cheung/AP)

A second startup airline business with a prominent founder could soon launch in the U.S., after a decade and a half of airline industry consolidation that left consumers with healthier airlines but fewer choices.

XTRA Airways, as it's known today — although the name will probably change — could carry passengers as America's newest "ultra-low-cost carrier," or ULCC, by late this year, according to a document for potential investors seen by Here & Now and confirmed by Andrew Levy, the airline's CEO. He was most recently the chief financial officer of United Airlines.

That's more than a year sooner than a competing airline also in the works, for now dubbed Moxy, led by JetBlue founder David Neeleman. XTRA can launch its new business relatively quickly because the airline already exists as a charter carrier.
"There's a lot of room for more airplane seats in the United States," Levy tells Here & Now. As evidence of the opportunity, the document points to what XTRA considers full flights and high fares in America today.

Levy surprised United employees and investors by leaving the company in May 2018, just as its operations and profits were improving, to "return to the more entrepreneurial pursuits that have defined my career." Previously, he was the co-founder and president of Allegiant Air, a not-always-loved but almost-always-profitable ULCC. Allegiant Air is one of three major U.S. ULCCs, alongside Spirit and Frontier.

Ultra-low-cost carriers typically distinguish themselves from other airlines by including little other than basic transportation with the base fare and charging extra for almost everything else.
"There's a lot of room for more airplane seats in the United States." Andrew Levy, CEO of XTRA Airways

XTRA will distinguish itself from its competition by providing better service, according to the investor document. It says ultra-low-cost carriers in the U.S. are unreliable compared to others around the world, and rely too much on primary airports. XTRA will seek out lower-cost, second-tier airports.
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Could the grounding of all Boeing 737 MAX jets, following a second fatal crash last month, hurt XTRA's ability to find planes at acceptable prices? Levy says he doesn't think so.
"If [the grounding] looks like it's going to be extended, then I think people will start to make alternative plans, whether it's holding onto [older] aircraft longer or other ways to manage through the situation," he says. "But we haven't seen any difference in the supply of aircraft, at least not in the last several weeks."
"I don't think people are going to want to extend aircraft leases and then find out the MAX they were waiting for is going to be ready to fly in two or three weeks," Levy added.

Seth Kaplan is Here & Now's transportation analyst.
This segment aired on April 2, 2019.