Start-up Avatar Airlines sees opportunity as debt-stricken competitors refocus, resize, retrench
“An industry that’s been devastated by COVID-19 just opens the door for those with the vision and fortitude to move into position with a new and better airline, one free of debt and well capitalized.” — Barry Michaels, CEO & Founder
BOCA RATON, FLORIDA, USA, September 1, 2020 /EINPresswire.com/ — The major U.S. airlines are continuing to warn investors that slower domestic passenger traffic resulting from drastic reductions in business travel and continued concerns about COVID-19 will reshape the industry.
But even as conventional wisdom warns that air travel might take years to return to its pre-pandemic levels, one unconventional start-up airline sees an unprecedented opportunity to revolutionize the industry. Avatar Airlines1 is preparing to take to the skies in late 2021 with a cost-efficient, debt-free and well-capitalized fleet and projected fares 30 percent to 50 percent less than the regular fares of Avatar’s competitors
“An industry devastated by COVID-19 opens a door for those with the vision and fortitude to move forward with a new and better airline, one free of debt and well capitalized, and offering highly competitive hauling rates and passenger fares,” said Barry Michaels, founder and chief executive officer of Avatar, a different kind of airline based in South Florida with an optimistic view of the future of domestic air travel. “As other carriers are grounding more of their planes and laying off highly talented, experienced workers, it’s a tremendous opportunity for us to build a new airline that won’t be burdened by restructuring costs and mountains of debt.”
With a looming Oct. 1 expiration date for federal stimulus payments tied to airline employment protections, industry analysts expect at least 75,000 jobs could be eliminated this fall. That presents a unique opportunity for Avatar, said Michaels, noting that the company has begun hiring a team of management and skilled operations leaders and started reaching out to potential investors.
“Why put new investment dollars into old deals and ideas?” said Michaels. “As domestic leisure travel returns and the demand for cargo transportation increases, Avatar will be able to accommodate both kinds of customers, and we’ll do it without the burden of debt or paying the leases on surplus planes and equipment.”
While planning to be a U.S. leader in ultra-low passenger fares, with no baggage or change fees, Avatar plans to generate income through a number of other revenue streams, including external and in-flight advertising, cargo transportation and partnerships with popular attractions and vacation destinations.
The centerpiece of Avatar’s launch plan is to take advantage of the current buyers’ market for unused and off-lease Boeing 747 aircraft, which have been largely taken out of service over the last few years. The long-haul 747, known in aviation circles as “Queen of the Skies,” remains highly popular among experienced travelers and offers a roomy cabin built to accommodate as many as 581 comfortable seats. Its considerable cargo space also enables more efficient point-to-point commercial hauling of storage containers and pallets, ideal to meet the growing needs of e-commerce retailers and customers.
“The major airlines are eliminating unprofitable routes, going to smaller planes, and facing a future of debt and huge financial losses,” said Michaels. “Avatar will be prepared to enter the market with no debt and a strong, talented leadership team2. And we believe there will be a huge demand from both commercial shippers seeking affordable cargo capacity and cost-conscious passengers who want to experience the pure pleasure of flying in a 747.”
About Avatar Airlines
Avatar Airlines believes it’s time to fly big again. Powered by an experienced team of leaders and flight operations professionals, Avatar plans to revolutionize the airline industry by transforming the traditional long-haul Boeing 747 aircraft into an innovative, cost-efficient supersized passenger and cargo airline brand. For more details, visit avatarairlines.com.
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