Avelo Airways is pulling the plug on its total West Coast operation by the top of 2025.
It’s a notable transfer for a service that kicked off its journey in California simply over 4 years in the past throughout the top of the COVID pandemic.
The Large Retreat: Avelo’s West Coast Exit
Avelo Airways is formally waving goodbye to its West Coast operations, with the shutdown set to wrap up by early December 2025. This contains closing its base at Hollywood Burbank Airport (BUR), which was Avelo’s inaugural base. The Houston-based service launched on 28 April 2021 with a flight from BUR to Charles M. Schulz-Sonoma County Airport (STS) in Santa Rosa, California.
Since then, Avelo has expanded operations, offering West Coast vacationers on the lookout for reasonably priced flights to smaller, underserved airports that the large airways usually overlook.
However now, the service is packing its baggage and heading east, the place it has a extra strong presence. All however one in every of Avelo’s plane might be transferred from BUR by 12 August, with the bottom closing solely by 2 December. The remainder of its West Coast routes may even finish on or round that date. It’s a major shift for a service that, simply 4 years in the past, planted its flag in BUR and expanded to areas up and down the West Coast and the Intermountain West.
Why the Pullback? It’s the $$$, of Course
So, what’s driving this choice? In keeping with Avelo Airways CEO Andrew Levy, all of it comes all the way down to {dollars} and cents.
“This was not a simple choice,” Levy stated. “Our firm’s deepest operational roots are in BUR, having launched our first flight there over 4 years in the past throughout the COVID pandemic.”
We imagine the continuation of service from BUR within the present working setting won’t ship sufficient monetary returns in a extremely aggressive backdrop.
Andrew Levy, Avelo Airways CEO
However, he added, “We imagine the continuation of service from BUR within the present working setting won’t ship sufficient monetary returns in a extremely aggressive backdrop.”
Clearly, the West Coast market simply isn’t reducing it for Avelo’s backside line. The ULCC mannequin thrives on preserving prices low and serving markets with minimal competitors, however the West Coast has confirmed to be a tricky nut to crack. Levy sees “extra environment friendly longer-term progress prospects” on the East Coast, the place Avelo will now focus its efforts on attaining “sustainable money circulate era.”
In different phrases, Avelo is betting massive on its japanese operations to maintain the airline afloat.
The West Coast Footprint Will Disappear
Avelo’s West Coast community was constructed round connecting smaller airports to leisure locations, very like its ULCC cousin, Breeze Airways. From BUR, Avelo served 13 routes, stretching throughout California, Oregon, Washington, and even Montana. However when the curtain falls on 2 December, the next airports will see Avelo’s Boeing 737s fly away for good:
Harry Reid Worldwide Airport (LAS) | Las Vegas, NV
Charles M. Schulz-Sonoma County Airport (STS) | Santa Rosa, CA
California Redwood Coast-Humboldt County Airport (ACV) | Eureka/Arcata, CA
Rogue Valley Worldwide Medford Airport (MFR) | Medford/Rogue Valley, OR
Redmond Municipal Airport (RDM) | Bend/Redmond, OR
Salem-Willamette Valley Airport (SLE) | Portland/Salem, OR
Eugene Airport (EUG) | Eugene, OR
Tri-Cities Airport (PSC) | Pasco, WA
Glacier Park Worldwide Airport (FCA) | Kalispell, MT
Flights to FCA, SLE, STS, and LAS will finish as early as August 2025, whereas the remaining will wrap up by December. Salem-Willamette Valley Airport (SLE) will bear a very powerful hit with Avelo’s pullout: town will lose all industrial air service. That’s an enormous blow for a small market, though Salem is barely about an hour south of Portland Worldwide Airport (PDX).
What Occurs to the Planes and Individuals?
Avelo’s fleet of 20 Boeing 737s (eight -700s and twelve -800s) gained’t be sitting idle. The airline is relocating almost all of them to its East Coast bases, which embody:
Lakeland Linder Worldwide Airport (LAL) | Lakeland, FL
Orlando Worldwide Airport (MCO) | Orlando, FL
Raleigh-Durham Worldwide Airport (RDU) | Raleigh-Durham, NC
Tweed New Haven Airport (HVN) | New Haven, CT
Wilmington Airport (ILG) | Wilmington, DE
Wilmington Worldwide Airport (ILM) | Wilmington, NC
Bradley Worldwide Airport (BDL) | Hartford, CT
Harmony-Padgett Regional Airport (USA) | Charlotte, NC
Avelo Airways is providing to switch West Coast-based employees to one in every of these East Coast bases. It’s a beneficiant transfer, however one has to think about it’s nonetheless a tricky capsule for workers who’ve referred to as BUR dwelling because the airline’s launch.
Avelo Airways’ East Coast Focus: What’s Subsequent?
With the West Coast quickly to be within the rearview mirror, Avelo is doubling down on its East Coast operations. The airline at present serves 53 cities throughout 21 states and Puerto Rico, plus three worldwide locations: Montego Bay, Jamaica (MBJ), Cancun, Mexico (CUN), and Punta Cana, Dominican Republic (PUJ). After the West Coast shutdown, Avelo will nonetheless fly to 40 locations within the central and japanese US, together with these worldwide spots.
Avelo’s enterprise mannequin of serving secondary and underserved cities, whereas offering exemplary service, stays unchanged. This technique has labored nicely for Avelo within the East, and the airline is banking on it to gas future progress.
The ICE Controversy: A Non-Issue?
One wrinkle in Avelo’s story has been its contract to function deportation flights for US Immigration and Customs Enforcement (ICE) out of Phoenix-Mesa Gateway Airport (AZA). The deal sparked protests and criticism from some corners, however Avelo insists it’s unrelated to the West Coast shutdown.
Protests, nor our contract with DHS, had any impact on our choice and didn’t influence our enterprise.
Courtney Goff, Avelo Airways Spokesperson
Avelo spokesperson Courtney Goff says the choice was purely monetary. “Protests, nor our contract with DHS, had any impact on our choice and didn’t influence our enterprise,” stated Goff.
Whether or not you purchase that or not (enplanements reportedly haven’t been affected by protests at a number of airports, reminiscent of Eureka), it’s clear Avelo is preserving its give attention to the financials, not the headlines.
A Bittersweet Farewell
Avelo’s retreat from the West Coast is an unlucky byproduct of the uber-competitive airline enterprise. Everyone knows how brutal the airline enterprise will be, even for a scrappy ULCC. Margins are razor-thin, and the competitors is relentless. Launching throughout the COVID pandemic was a gutsy transfer, and Avelo Airways made a reputation for itself by bringing reasonably priced fares to smaller, usually ignored markets like Eureka, Pasco, Bend, and others. However the numbers don’t lie, and the West Coast wasn’t delivering the returns Avelo wanted.
Because the airline shifts its singular focus to the East Coast, it’s laborious to not really feel a bit nostalgic for these early days at BUR. Avelo’s first flight to Santa Rosa in 2021 marked the beginning of one thing particular: a brand new participant within the ULCC area with a knack for serving the underdog airports.
Now, as Avelo doubles down on connecting underserved markets elsewhere, we’re rooting for them. Wholesome competitors is nice, irrespective of the trade. However everyone knows the ULCC market, particularly, is a tricky one. Frontier, Spirit, Breeze, Allegiant, Solar Nation, and Avelo are all vying for a chunk of the pie.
Right here’s hoping there’s room on the desk for all of them.
