36 start-up airlines line up for take-off. Part 1: Europe
While most of the airline industry is working out how to survive the next two years, burdened by massive debt and confronting an uncertain world still deeply challenged by COVID, would-be airlines are queuing up to enter one of the least profitable industries in commercial history. After 42 startups in the last 18 months, there are at least 36 still to come. Why?
Perhaps startup conditions are more fertile than ever before. The barriers to market entry have always been relatively low; today, much more so. Survival conditions might be another matter though.
Speaking to CAPA Live on 12-May-2021, Air Lease Corporation's executive chairman Steven Udvar-Házy identified the raw ingredients for making a new airline as: "cheap money, capital, cheap aircraft, and pilots".
"Today we have relatively easy access to capital. There's venture money that's available", said the 50-year aviation industry veteran, adding, "There's good young used aircraft at reasonable prices, and there's plenty of pilots and flight attendants that are looking for work. That's a temptation to start a new airline."
Mr Udvar-Házy might have added there are also lots of lessors keen to place surplus existing orders somewhere. According to CAPA's databases, 42 start-up airlines launched operations between Jan-2020 and 12-Jun-2021.
At least 36 more are actively planning to launch within a timeframe of 12 to 24 months, of which 13 are based in Europe, eight in Latin America, eight in Asia Pacific, four in Africa, and three in North America.
This three part CAPA report looks at these 36 start-up airlines, giving a summary of each of them.
- There are currently 36 global start-up airlines yet to launch, in addition to the 42 new airlines that became active between January 2020 and June 2021.
- The majority of these start-ups are based in Europe, with 13 planned airlines in the region.
- The availability of cheap money, capital, cheap aircraft, and pilots has made it tempting for entrepreneurs to start new airlines.
- However, the success of these start-ups is still uncertain, and the industry is highly competitive and challenging.
- Some of the notable European start-ups include Sky Alps, PLAY, Flyr, Airseven, PRAGUSA.ONE, Canarian Airways, Fly Armenia Airways, Jump Air, flypop, Heston Airlines, Emerald Airlines, and Moov Airways.
- These start-ups have different business models, ranging from low-cost carriers to full-service
Summary
- There are 36 global start-ups yet to launch, in addition to 42 new airlines that became active between Jan-2020 and 12-Jun-2021.
- Of those, 13 are based in Europe, eight in Latin America, eight in Asia Pacific, four in Africa and three in North America.
- "The jury's still out" on whether all these start-ups will succeed, according to Air Lease Corporation's Steven Udvar-Házy.
- This, Part 1 of a three part series, looks at the European wannabes.
For Part 2 of this report, please see Part 2: LatAm, AsiaPac
The July edition of CAPA Live, entitled "Surviving a pandemic: LCCs and Full Service Business Models", is on 14-Jul-2021.
Tune in to watch several of the CEOs of new airline startups, along with many other leading voices
There are 36 global airlne start-ups yet to launch
CAPA's global start-up airline database contains 159 names as at 22-Jun-2021. This is on top of the 42 new airlines that have already become active in the COVID-19 era (between Jan-2020 and 12-Jun-2021).
However, a large number of these airlines have been in the database for several years, and there has been no news concerning them for some time. They may or may not still have active plans to launch, but this is currently not clear.
There are 36 start-ups globally that are currently actively expecting to launch; either there is a specified time frame to launch or, in the case of two of them, there is no specified launch, but there are recent news reports of their activities.
The 36 start-ups are shown in the table below, listed in ascending order of expected launch.
Planned start-up airlines that have expected launch dates
|
Name |
Expected launch |
Business model |
Main hub |
Country/Territory |
Region |
|---|---|---|---|---|---|
|
1. FlyWestAf |
May-21 (delayed) |
Low cost carrier |
Banjul Yundum |
||
|
2. Sky Alps |
Jun-21 |
Virtual airline |
Dolomiti |
||
|
3. PLAY |
Jun-21 |
Low cost carrier |
|||
|
Jun-21 |
Full service carrier |
GRU São Paulo Guarulhos |
|||
|
5. Flyr |
Jun-21 |
Low cost carrier |
Avinor Oslo |
||
|
6. Airseven |
Jun-21 |
Virtual airline |
|||
|
7. PRAGUSA.ONE |
Jun-21 |
|
Vaclav Havel |
Czech Rep. |
Eastern/Central Europe |
|
Jun-21 |
|
||||
|
Oct-21 |
|
Mariscal Sucre |
|||
|
10. Connect Airlines |
Oct-21 |
Regional/Commuter |
Toronto City |
||
|
11. Green Africa |
Jul-21 |
Full service carrier |
|||
|
12. Avatar Airlines |
2H2021 |
Low cost carrier |
|||
|
13. FLY-CD |
3Q2021 |
Full service carrier |
Bonaire Flamingo |
||
|
14. Zambia Airways |
2Q2021 |
Full service carrier |
Kenneth Kaunda |
||
|
15. Flycana |
2Q2021 |
Low cost carrier |
Las Americas |
Dominican Rep. |
|
|
16. Breeze Airways |
2Q2021 |
Low cost carrier |
|||
|
17. SKS Airways |
2Q2021 |
Charter |
South East Asia |
||
|
2Q2021 |
Low cost carrier |
Rayong-Pattaya |
South East Asia |
||
|
2Q2021 |
Full service carrier |
Zvartnots |
Eastern/Central Europe |
||
|
20. Jump Air |
2Q2021 |
Charter |
Eastern/Central Europe |
||
|
21. Aeroperu |
2021 |
Full service carrier |
Jorge Chavez |
||
|
22. AVA Airways |
2021 |
Full service carrier |
Las Americas |
Dominican Rep. |
|
|
23. flypop |
2021 |
Low cost carrier |
London |
||
|
2021 |
Regional/Commuter |
Birsa Munda |
|||
|
25. Air Premia |
2021 |
Full service carrier |
|||
|
26. La Nova |
2021 |
Virtual airline |
|||
|
27. NELLA Airlines |
2021 |
Regional/Commuter |
|||
|
28. Ultra Air |
2021 |
Low cost carrier |
Medellín Jose Maria Cordova |
||
|
29. Heston Airlines |
2021 |
Charter |
Eastern/Central Europe |
||
|
2021 |
Low cost carrier |
||||
|
31. Pasifika Air |
2021 |
|
|||
|
32. Canh Dieu Airlines (Kite Air) |
2022 |
Full service carrier |
Chu Lai |
South East Asia |
|
|
33. Toki Air |
2022 |
Low cost carrier |
|||
|
34. Emerald Airlines (Ireland) |
2023 |
Regional/Commuter |
|||
|
35. SkyBird Airlines* |
? |
Charter |
|||
|
36. Moov Airways* |
? |
Low cost carrier |
EuroAirport Basel/Mulhouse/Freiburg |
Europe: 13 planned start-up airlines
Sky Alps
Sky Alps is an Italian Virtual airline to be based at Bolzano Dolomiti Airport. In Apr-2021 it agreed with Chorus Aviation to lease two Bombardier Dash 8-400 aircraft for delivery by May-2021.
Launching with a service to Rome, it is expected to add Catania, Cagliari and Lamezia in summer 2021. Sky Alps' launch is expected in Jun-2021.
PLAY
PLAY is a proposed Icelandic LCC, based at Reykjavik Keflavik. Previously known as WAB air, PLAY was founded by former executives of the bankrupt LCC WOW air, with Avianta Capital initially holding a majority stake.
The airline's CEO, Birgir Jonsson, is former Deputy CEO of WOW air.
Originally expected to launch in Summer 2020, it plans to serve destinations in the United States and Europe with Airbus narrowbodies.
It received an AOC and finalised A321neo lease agreements with AerCap in May-2021. PLAY has announced plans to launch a twice weekly Reykjavik-London Stansted service on 24-Jun-2021, increasing to four times weekly on 1-Jul-2021.
It is planning to add services to Alicante, Barcelona, Tenerife South, Berlin, Copenhagen and Paris by Aug-2021.
PLAY plans to grow its fleet to six to eight A321s in 2Q2022 and to operate more than 10 aircraft by 2023. Unlike WOW air, it does not plan to add widebodies to its fleet.
Flyr
Flyr is a new LCC based in Norway. Its founders, including its CEO Tonje Wikstrøm Frislid and investor Erik Braathen, have experience with airlines, including Braathens Regional Airlines, Norwegian, SAS and Widerøe.
Mr Braathen first announced plans for a new airline in early Oct-2020; it launched its website in Dec-2020 and listed shares on Euronext Growth in Mar-2021.
Flyr will initially focus on domestic services, but aims to expand to international destinations in Europe such as Copenhagen, Nice, Barcelona, Alicante, Málaga and Stockholm.
Operating Boeing 737-800s, Flyr plans to expand to a fleet of 28-30 aircraft. It intends to be an efficient and sustainable airline with a digital product, and fewer but more targeted routes and schedules.
Flyr expects its workforce to grow to 350 by the end of 2021, from 45 in early Apr-2021. It received its AOC from Norway's Civil Aviation Authority on 17-Jun-2021, after taking delivery of its first aircraft on 9-Jun-2021. It plans to launch with an Oslo-Tromsø service on 30-Jun-2021.
Airseven
Airseven, a proposed Danish virtual start-up based at Copenhagen Roskilde Airport, received its first two Boeing 737-400 aircraft in Dec-2020.
It plans to operate charter and ACMI leasing services for Primo Tours, Århus Charter and Sun Charter, using the air operator's certificate of Copenhagen Air Taxi, and its investors include the Danish tour operator Primo Tours.
Airseven reportedly plans to launch flights to Spain in Jun-2021.
PRAGUSA.ONE
PRAGUSA.ONE, based in the Czech capital Prague, intends to offer travel packages and direct scheduled services with a fleet of A330 and A350 aircraft.
The airline plans to operate from bases in Prague and Dubrovnik, serving Beijing, Chengdu, Johannesburg, Kuala Lumpur, Los Angeles, New York, Singapore and Tokyo.
PRAGUSA.ONE plans to launch Dubrovnik to New York Newark and Los Angeles services in Jun-2021. It will offer business class and economy class to both destinations and a first class cabin on its Los Angeles service.
Canarian Airways
Canarian Airways is a proposed Spanish airline to be based in Tenerife, with investment of EUR700,000 from the Canary Islands government in 25% of its capital.
It is expected to launch with a service to Vigo in Jun-2021, using A319 aircraft, and reportedly is planning to add other destinations in mainland Spain and elsewhere in Europe, including the UK and Germany.
Fly Armenia Airways
Fly Armenia Airways is a proposed full service airline to be based at the Armenian capital, Yerevan.
The airline obtained its AOC in Jul-2020 and took delivery of its first aircraft, a Boeing 737-400, in Nov-2020. According to its website, it offers flights from Yerevan to the Russian cities Anapa, Moscow, Novosibirsk, Rostov on Don, St Petersburg and Saratov.
Jump Air
Jump Air, to be based in Lithuania's capital, Vilnius, plans to launch passenger and cargo charter and ACMI operations with ATR 72-500 equipment in 2021.
flypop
Flypop is a proposed low cost long haul carrier based at London Stansted Airport, to operate between the UK and the Indian cities of Amritsar and Ahmedabad. On 11-Apr-2021 flypop announced a multiple aircraft A330-300 lease deal with Avolon, for delivery until 2023.
Flypop has been planned for at least five years, and the lease agreement now enables its application to the UK Civil Aviation Authority for an air operator's certificate. It hopes to launch operations by Oct-2021 with one aircraft, and then plans to add an extra aircraft every six months.
A rewards-based crowd-funding programme was launched in Jun-2016 and it has raised further funds through the UK Government's Future Fund, announced in Nov-2020.
Flypop founder and CEO Nino Singh Judge aims to build the airline on underserved VFR demand for direct flights between the UK and secondary cities in India (which were previously served only via Delhi or Mumbai). There is also potential to expand over time from UK-India to include destinations across all of South Asia.
Mr Judge had planned to launch operations before COVID-19, but it may now be a beneficiary of the delay. Unlike competitors that are already operational, it has not incurred costs during the crisis. Moreover, it is now likely to be benefiting from the reduced operating costs resulting from the pandemic - for example, lease and labour costs.
la nova
La nova is a Swiss virtual start-up to be based at Geneva Airport. It plans to operate scheduled regional services to European destinations from Geneva and Zurich. It originally expected to launch services in 2018, but has deferred its launch plans to spring 2021.
According to its LinkedIn page, "Flylanova ltd is a privately-owned, limited liability company based in Geneva and founded by aviation and finance professionals.
"The company is registered with the Geneva Commercial Registry since November 2017. Through ' La Nova brand, we offer our clients a premium air transport services and operate as a 'virtual' airline by selling seats on aircraft bearing the company visual. We therefore act as flight broker and as such arrange carriage by air on behalf of our clients by chartering aircraft from third-party European aircraft operator as their agent.
"This model of operations is widely use in the industry as it avoids most of the costs linked to highly expensive infrastructure as well as heavy staff and administrative requirements, whose do not fit into the initial risk strategy of our business model. thus allowing an important reduction of costs. This strategy was used by easyJet during its startup years and commonly used by legacy or low cost airlines to meet the capacity increase during peak seasons."
For now, its website currently only displays a post-it image saying "We'll be back soon", but it does not say how soon.
Heston Airlines
Heston Airlines is a Lithuanian A320 family operator based in Vilnius and focused on charter and ACMI markets. According to the lessor Genesis, Heston Airlines has taken delivery of two aircraft and obtained AOC approval.
Its website says that it had planned to launch from May-2021 (and still said this on 22-Jun-2021). It reportedly plans to grow its fleet to seven aircraft by 2022. The airline is part of Heston Aviation, which focuses on aviation assets leasing, trading and MRO.
Emerald Airlines (Ireland)
Emerald Airlines is a proposed regional airline to be based in Dublin, Ireland. Backed by the Irish aviation entrepreneur Conor McCarthy, it has been linked with a bid for the Aer Lingus Regional contract.
Emerald is awaiting an AOC and the delivery of its first two ATR72 aircraft. It aims to operate up to 15 ATR72s eventually. The airline plans to launch operations in 2023.
Moov Airways
Moov Airways (formerly Swiss Skies) is a proposed low cost long haul service operator to be based at EuroAirport Basel.
It plans to operate from its main hub in Basel, as well as bases in other European destinations. It is evaluating destinations in North America, South America, the Caribbean, Middle East, African and India.
It is considering Airbus A321XLR aircraft to develop a long haul network for secondary markets.
Moov Airways was originally expected to begin operations in 2019, but was delayed due to difficulty in raising start-up capital. A revised launch date has not been specified, but the A321XLR is not due to enter service before 2023.
To follow: Part 2. Latin America: eight planned start-ups