Mesa: Avelo Airlines has announced its decision to discontinue deportation flights for the US government while simultaneously scaling back its commercial operations and workforce. This announcement was made through a communication from the airline's chief executive to employees.
According to Anadolu Agency - English, Avelo Airlines, which began operations in 2021 with the goal of connecting underserved and smaller cities, had previously withdrawn from several West Coast markets. The carrier subsequently started conducting deportation flights for US Immigration and Customs Enforcement (ICE), a move that sparked protests and criticism from certain lawmakers.
In an internal email obtained by CNBC, CEO Andrew Levy addressed the repercussions of participating in the ICE program, stating, "We moved a portion of our fleet into a government program which promised more financial stability but placed us in the center of a political controversy." Levy further elaborated that while the program offered short-term benefits, it failed to provide consistent and predictable revenue to offset its operational complexities and costs.
As a result, Avelo has decided to shut down its Mesa, Arizona base as it phases out ICE flight operations. The airline plans to return six Boeing 737-700s and close its bases at Raleigh-Durham and Wilmington in North Carolina, although it will maintain flights to these cities. These strategic changes will necessitate job reductions, with Levy noting that while some transfer opportunities will be available, the airline will need to cut positions due to its reduced fleet and network.
Moving forward, Avelo will focus its operations on bases in Connecticut, Florida, Delaware, and near Charlotte, North Carolina, while also opening a new base near Dallas. The union representing Avelo flight attendants has expressed approval of the decision to end ICE flights, expressing hope that this move, along with new financing, will enhance stability for the airline. Avelo has indicated that schedule changes will affect many customers, who will be notified of any impacts. Levy also informed staff that the airline has secured significant new capital, placing it in its strongest financial position to date.