Breeze Airways, a new airline based in Salt Lake City, Utah, has secured a fundraise of US$ 200 million in a Series B funding round held on August 18 2021. BlackRock and Knighthead Capital Management led the financing round and additional capital by the airline’s existing backers, Utah firms Peterson Partners and Sandlot Partners. This latest investment has raised the company’s subsisting valuation to a near-total of US$ 300 million. 

Fund Utilisation

Founder and CEO of Breeze Airways, David Neeleman, declared that the new funding would be used to help expand Breeze’s long suit of connecting smaller U.S. airports with new, nonstop service. Breeze currently provides service to 16 cities and flies 39 routes with 13 single-class, Brazilian-made Embraer aircraft.

“Welcoming funds and accounts managed by BlackRock and Knighthead and additional funding from our existing investors further validate our business strategy to offer new nonstop flights at reduced fares between smaller cities where the Guest’s only choice today is a lengthy connecting flight through a large hub airport. We look forward to working with our new investors, humbled to be considered the best-funded startup in U.S. aviation history, and are excited about the growth that it will fuel,” said Neeleman in a statement. 

Following the launch of onetime Utah-based provider Morris Air, JetBlue, Canada’s WestJet, and Brazil’s Azul Airlines, serial entrepreneur David Neeleman founded his fifth latest airline startup Breeze Airways, in 2018. 

Neeleman stated that his latest airline would focus on catering service linking U.S. cities to secondary market airports, alongside pushing back a long-running industry bent toward directing operations and flights at select hub facilities. Breeze aims to embrace a slew of tech tools and flexibility options that utilise a customer-centric business approach to lower prices. This, supposedly, will make the newest airline venture stand out among competitors, according to Neeleman.

He adds, “A staggering 95% of Breeze routes currently have no airline serving them nonstop. With the seamless booking, no change or cancellation fees, up to 24-months of reusable flight credit and customised flight features delivered via a sleek and simple app, Breeze makes it easy to buy and easy to fly.”

The company says, in October, it will be receiving a delivery of 60 new Airbus A220 aircraft, delivered at a rate of about one per month for the next five years. Also, the new planes will be flown on routes more distant than two hours’ flight time.

What the Investor has to say

Partner at Knighthead Capital, Investor Adam Zirkin, “Breeze’s use of right-sized and efficient aircraft to offer new nonstop service between smaller U.S. cities constitutes a true competitive advantage and delivers a better experience for travellers whose only current options are connecting flights. Moreover, the airline’s unique use of technology allows for better service at lower cost, eliminating the missed connections, delays, and extended customer service hold times that are such an unfortunate part of air travel as we know it.”

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