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Avelo Airlines, a Houston-based ultra-low-cost carrier, has adopted a unique business model that sets it apart from other airlines in the United States. Emerging from rebranding efforts of former charter-oriented carriers, Avelo is backed by a former United Airlines executive and aims for long-term growth by launching flights in new markets globally.
The airline's strategy focuses on creating new markets by entering city pairs previously unserved by nonstop flights. Unlike other low-cost carriers that compete on price against full-service airlines, Avelo avoids operating out of major cities and busy air travel markets. Instead, it targets secondary cities with its point-to-point network model using Boeing 737 aircraft.
"Avelo Airlines has an incentive to avoid larger markets due to the high amounts of competition and the increased costs associated with operating in such spaces," according to industry analysts. This approach allows Avelo to maintain lower operational costs and minimize competition.
