Avelo Airlines launched operations in 2021. As it starts 2022, it has announced it raised $42 million in Series B funding. This second round of funding increases the airline’s invested capital base to over $160 million. The money will help the airline continue to invest in the airline as it plans to more than double its fleet and network in 2022.
Avelo successfully raises $42 million
Avelo has announced it raised $42 million in Series B funding. The Series A funding raised approximately $125 million and closed in January 2020, helping give the airline the initial base to acquire aircraft and start operations. The $42 million from Series B provides the carrier an added cushion to continue investing in the airline.
Avelo Founder, Chairman, and CEO Andrew Levy stated the following on the funding:
“The incremental capital we’ve raised is a significant vote of confidence in Avelo’s initial momentum and the enormous opportunity ahead of us. This additional capital significantly bolsters our already strong balance sheet and enablesthe acceleration of Avelo’s growth trajectory in 2022 and beyond.”
Morgan Stanley Tactical Value (MSTV) invested an additional $30 million beyond the Series A investment through a managed investment fund. The additional funding makes MSTV Avelo’s largest shareholder and expressed confidence in the airline.
The primary funders in the second-round offering were Series A shareholders. This includes Levy, members of management, and board members or the entities they represent. This includes personal investments. In total, these shareholders have collectively invested more than $34.7 million in the airline.
Avelo plans to grow in size
Avelo Airlines has committed to significant growth in 2022. It ended 2021 with six Boeing 737 Next Generation aircraft, split evenly between 737-700s and 737-800s. In 2022, it has committed to add at least nine more aircraft in its fleet over the year. All are expected to be Boeing 737 aircraft.
This will allow Avelo to expand its network. It wants to grow from 19 destinations to at least 40 markets across the United States. The carrier’s initial network has primarily targeted leisure-oriented travelers, and the network will continue to lean into those groups of travelers.
It will also be hiring as it takes on new aircraft and grows its network. In 2022, it expects to add more than 450 crewmembers to its ranks. Avelo is currently actively hiring for various roles, including flight attendants and pilots.
Avelo looks ahead after launching in 2021
Avelo officially launched services on April 28th, 2021. The airline chose Hollywood Burbank Airport (BUR) in the Los Angeles area as its first base and has maintained a sizable presence at the airport. On November 3rd, the airline turned its eyes to the East Coast, with its second base at Tweed-New Haven Airport (HVN), connecting Connecticut to top leisure gateways in Florida.
Ending the year with six Boeing 737 Next Generation jets, the airline touted it flew 345,000 passengers on 3,000 flights. It also delivered a completion factor of 99.8%, only canceling seven flights since its inaugural departure.
Launching an airline is not an easy task. History has a host of startups that have never made it past the drawing board. One of the hurdles airlines have to overcome is getting their name out in the marketplace alongside the traditional investment and marketing to make routes successful.
The new round of funding will be a net benefit for Avelo. With the added capital, it can target growth, offering more utility to more customers while also having a cushion to keep flying as it ramps up its operations.
from Simple Flying https://ift.tt/3qRqp5y
via IFTTT
Comments
Post a Comment