Former United CFO raises US$125m for startup US airline

A new budget airline created by a former United executive has raised $125m in funding and plans to start service before the end of the year. The company, operating as Houston Air Holdings, is “getting ready to spool up to transform this little charter airline we bought,” Andrew Levy said Wednesday. The strategy is to offer nonstop flights from secondary airports to midsize and large markets, Levy said. The project is the second new US airline planning to start flights in 2020. “We’re going to grow at a measured pace,” said Levy, a co-founder of Allegiant Travel. “We’re going to build the company a little bit like Allegiant, slowly and steadily,” with a foundation of “far more capital than we think we’ll ever need.” The startup will employ a fleet of Boeing 737-800’s. It will take its first plane next week from General Electric’s aircraft lessor, and use them for charter service over the summer. <br/>