Avelo Airlines Now Announces Closure of West Coast Operations, Shifts Focus to East Coast

Avelo which has become known for being a budget carrier (and quite solely on short-haul flights) believes the shift will allow them to now concentrate on markets where they can better serve their communities and fly more profitably.

Effects on California Employees and Customers

Avelo expects all existing California-based employees to have the opportunity to transfer to an East Coast base. But that offer to move is only to locations in Connecticut, North Carolina and Delaware, so employees will have to decide whether to relocate or start their job search outside of the airline.

The Controversial Avelo-ICE Partnership

The decision to pull the plug on its West Coast operations is a pivot for Avelo Airlines as it adjusts its strategy to better reflect the direction the air travel landscape is going. Despite being able to establish itself as a modest player in the affordable/low cost carrier subsector of low cost travel, market dynamics and increasing operating costs make it hard for the airline to continue playing in the west coast.

By relocating the hub to more lucrative East Coast locales, Avelo hopes to sort out and expand its business in markets that still seem to hold some potential for price-conscious passengers. Unclear, as the airline pivots and restructures, is how these adjustments will affect its future in a U.S. airline industry growing more competitive.