Avelo Airways is pulling the plug on its complete 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 in the course of the peak of the COVID pandemic.
The Massive 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 luggage and heading east, the place it has a extra sturdy presence. All however one among Avelo’s plane might be transferred from BUR by 12 August, with the bottom closing totally by 2 December. The remainder of its West Coast routes can 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 resolution? In line with Avelo Airways CEO Andrew Levy, all of it comes all the way down to {dollars} and cents.
“This was not a simple resolution,” Levy mentioned. “Our firm’s deepest operational roots are in BUR, having launched our first flight there over 4 years in the past in the course of the COVID pandemic.”
We consider the continuation of service from BUR within the present working atmosphere is not going to ship satisfactory monetary returns in a extremely aggressive backdrop.
Andrew Levy, Avelo Airways CEO
However, he added, “We consider the continuation of service from BUR within the present working atmosphere is not going to ship satisfactory monetary returns in a extremely aggressive backdrop.”
Clearly, the West Coast market simply isn’t slicing it for Avelo’s backside line. The ULCC mannequin thrives on holding prices low and serving markets with minimal competitors, however the West Coast has confirmed to be a troublesome 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 reaching “sustainable money circulation era.”
In different phrases, Avelo is betting large 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: the town will lose all industrial air service. That’s an enormous blow for a small market, though Salem is just 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 embrace:
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 among these East Coast bases. It’s a beneficiant transfer, however one has to think about it’s nonetheless a troublesome capsule for workers who’ve known 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 properly for Avelo within the East, and the airline is banking on it to gasoline 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 resolution 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 resolution and didn’t influence our enterprise,” mentioned Goff.
Whether or not you purchase that or not (enplanements reportedly haven’t been affected by protests at a number of airports, similar to Eureka), it’s clear Avelo is holding 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 may be, even for a scrappy ULCC. Margins are razor-thin, and the competitors is relentless. Launching in the course of the COVID pandemic was a gutsy transfer, and Avelo Airways made a reputation for itself by bringing reasonably priced fares to smaller, usually missed 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 onerous 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 house 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 sweet, regardless of the trade. However everyone knows the ULCC market, specifically, is a troublesome one. Frontier, Spirit, Breeze, Allegiant, Solar Nation, and Avelo are all vying for a bit of the pie.
Right here’s hoping there’s room on the desk for all of them.
