United’s former CFO to launch a new US budget airline

The former CFO of United Continental Holdings is betting that the US airline industry needs another budget airline. Andrew Levy, who also helped establish Allegiant Travel Co., is raising money for a new low-cost niche carrier designed to serve secondary airports with a reliable experience that differs from current players in the market. “We think the opportunity exists for a real high-quality, highly reliable, extremely low fare, basic transportation service,” Levy said Tuesday. The airline, which has not yet been named, will offer “a better product and experience but still offer really low prices,” he said, comparing the venture to the past experience of Southwest. “I think Southwest showed that for many, many years.” The Houston-based company has not decided on an aircraft type but is leaning toward leasing Boeing’s 737-800. The planes would seat 189 passengers, a high-density approach designed to help the company offer fares below the industry average. The carrier could start service with around five aircraft late this year or in early 2020, Levy said. The aggressive schedule would place its debut ahead of another planned US airline entrant—dubbed Moxy—that is expected to begin flights in 2021 using the new Airbus A220. <br/>