7th February 2020, Boeing gets a Letter Of Intention (LOI) for 30 new 747-8 aircraft, a deal that could be worth over $10 billion dollars, from Avatar Airlines.
Specifically, Avatar is interested in purchasing 30 new 747-8s (passenger-version) to be delivered within 3-5 years.
Avatar is currently looking to acquire 14 used 747-400s to begin their initial service, but the 747-8 is considered to be the ideal aircraft to replace the older 400s. Management also believes the -8 will provide an increase in passenger/freight load capacity; along with significantly lower operating costs, especially in fuel.
On 19th November 2019, Avatar filed for a 121 certificate with the FAA; also filing with the Department of Transportation for a Certificate of Public Convenience and Necessity.
Avatar’s plan is to operate ultra-low fare, non-stop flights to and from high-density markets within the continental U.S. Initially utilising a Boeing 747-400 aircraft configured with 581 seats, 539 Economy on the lower deck and 42 Business on the upper deck.
Their plan is a radical departure from the current “low cost” competitors that use small aircraft and charge passengers extras for various amenities, that used to be included in the cost of their tickets (i.e. seat selection, baggage, etc.).
Avatar plans 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 also plans to use the Boeing 747 to wholesale commercial cargo, which other low-cost competitors could not do due to the physical dimensions of their fleet. Potential profits will also come from advertising both inside and outside the cabin.
For its frequent flyer program, joining Avatar’s Fly “Free” Club requires a one-time registration fee of $49, plus $249 a year. You will get to fly “Free” on any available Avatar flight (just pay the applicable taxes). Think of it as flying stand-by without a charge.
Boeing and Avatar can reinvent the 747, with its lowest cost per available seat mile, into a gold standard for low-cost mass transportation, bringing increased value to their shareholders and the public.
Barry Michaels, Founder & CEO Avatar Airlines
Sound like an interesting plan? Do not get excited yet. Actually, this business model has been in the work since 1992, initially as Family Airlines.
Moreover, the founder, Barry Michaels, has been charged criminally and was sentenced to 21 months in prison, after pleading guilty to securities fraud and a tax charge in 1997.
It would be quite a surprise if this airline does actually take off.
747 was grand, but let’s not kid ourselves: key 747 suppliers are already shutting down production, major assets have been sold already. It’s a process in motion. Boeing would be expending its own funds and burdening itself with an enormous liability if it were to extend 747 production for a single left-field order from an unknown customer.
For a comparison, look at Airbus’ relationship with Emirates in the final days of the A380.
When did 747’s become “fashionable” again? All US carriers have stopped using them altogether.
if you go to their website, it sure seems like they have quite a few folks on their payroll already – is Barry Michaels bankrolling all these people years before the airline even attempts a launch?
Im proud to see more and more Queen of the skies flying.
ok here’s to ALL YOU NAYSAYERS Say they are certified as a 121 carrier, evedently someone has the money quite a large amount of money to try this colossal business venture.Do you people really think that they haven’t thought of the possible failure scenarios that could befall them also do you really think that he hasn’t considered the fact that all you out there are not going to give him a snowballs chance of success because if i can say these things he has already considered you people in the grand scheme of things such as a laughing stock of business failures??Last but certainly not least because one has been convicted of a felony does not condemn them to failure remember the prodigy son was a convicted felon and still he became head of Amtrak…….also i was a convicted felon and became an A&P/Inspector for over 30 years with an impeccable record until my retirement in 2016
No, Avatar Airlines will not fail because it will never fly. I was involved with Avatar a few years back and the organization is managed by morons that lie and lie and lie. The founder, Barry Michaels, is a convicted felon. They still owe me $57K, which I know I’ll never see.
How will they even build them when one of the 747 suppliers closed shop?
I still have a hope that the 747 can be rescued! My thought is that as air travel grows, the pressure on landing slots grows so airlines will (try) turning to heavies like the 747 and, just maybe, the A380 on heavily trafficked routes to ease the congestion.
As I said, just a hope!
Soooooo, let me get this straight – you think a low-cost startup airline can make a profit buying “brand new” 747-800s?
I get that right?
Oy vey
But then I saw this; “Zhuofan (Neo) Li is currently studying Airline Management and Operation at Purdue University.” And then it all made sense.
Our editor merely report their plan, you can tell Avatar Airlines about your opinion.
The odds of them being a successful/viable long-term U.S. carrier? Slim to none.
Time to dust off the famous joke, “How do you make a small fortune in aviation? Start with a very large fortune.”
Tower air failed quick. So will avatar.
They won’t fail because that would require them to launch (as in operate) first.