Sunday, 29 November 2020

America's newest start up airline Avatar to acquire 10 747's from Thai Airways

Ultra-low fare newcomer Avatar Airlines has extended a letter of intent to Thai Airways to acquire 10 long-haul Boeing 747-400 aircraft. “We’ve developed a creative and considerable investment opportunity for Thai Airways to convert some of its unused and off-lease wide-body aircraft and potentially realise a far greater return than if the aircraft were simply liquidated for cash,” said Avatar’s founder and chief executive Barry Michaels. Due to the nature of the deal, specific terms were not disclosed.
Avatar plans to operate scheduled services between major city pairs throughout the US and Hawaii, with routes including popular domestic vacation destinations and large family-oriented attractions.
“Our offer to Thai Airlines is part of a bigger partnership opportunity that we believe will not only accelerate Avatar’s plans to start flying within 12-18 months,” said Michaels, “but also position Thai Airways for a code share entry into the US market and a long-term relationship between our two companies.” Avatar said it chose to utilise the Queen of the Skies, as it remains highly popular among experienced travellers 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, Avatar said. Avatar’s use of the Boeing 747 will enable it to offer “all inclusive” regular fares such as $49 from New York to Miami and $79 from California to New York, increasing markets for those that fly infrequently and creating new markets for those that don’t fly at all. Avatar’s exclusive use of the Boeing 747 will earn additional significant income by e.g., wholesaling commercial cargo, an operation not available to Avatar’s competing counterparts due to the physical dimensions of their fleet. Several other profit centers are similarly designed for Avatar to earn additional revenue from strategic partners, rather than relying solely on passenger revenue; advertising both inside and outside the cabin is one such profit center.

No comments:

Post a Comment