Latest news with #AveloAirlines
Al Jazeera
a day ago
- Business
- Al Jazeera
Houston-based Avelo Airlines faces backlash for deportation flights
Avelo Airlines, a struggling, Houston, Texas-based budget carrier, has faced weeks of backlash after taking a contract with the United States government to use its planes to deport migrants, the first commercial airline to do so. Avelo, which started the deportation flights in mid-May, defended the move in an April 3 letter to employees, saying its partnership with the Immigration and Customs Enforcement (ICE) agency is 'too valuable not to pursue'. Founded in 2021, the airline has been in financial turmoil and was projected to have only about $2m in cash on hand by June, the trade publication Airline Observer reported last month. An Avelo spokesperson told Al Jazeera that that reporting is outdated. The airline has not disclosed the terms of the deal with ICE but is said to be using three of its Boeing 737 aircraft for the flights. Avelo has 20 aircraft in its fleet. At the beginning of 2024, Avelo reported its first profitable quarter since its founding but hasn't released any financial results since then. Because it is not a publicly traded company, Avelo is not legally obligated to regularly disclose its financial status to the public. Avelo's deal was brokered through a third-party contractor, CSI Aviation, which received $262.9m in federal contracts, mostly through ICE, for the 2025 fiscal year. While CSI Aviation did not confirm to Al Jazeera the specifics of its deal with Avelo, federal spending records show the company was awarded a new contract in March and received $97.5m in April when the Avelo flights were announced. April's contract marks the biggest for CSI Aviation since it began receiving federal contracts in 2008. Until now, CSI Aviation's highest payouts had come more frequently during Democratic administrations. In October under former President Joe Biden, the federal government paid out more than $75m to CSI Aviation. CEO Andrew Levy has said Avelo operated similar flights under the Biden administration but the public outcry against Avelo this time is because of how Republican President Donald Trump's administration has conducted deportations. 'In the past, the deportees were afforded due process,' aviation journalist and New Hampshire state lawmaker Seth Miller said. '[They were] not snatched off the street, moved multiple times to evade the judicial process and put on planes before they could appeal. In the past, they were returned to their country of origin, not a third country. In the past, they were not shipped to a labour camp from which no one is ever released.' 'These are, to me, not the same deportations as in the past, and any company signing on in April 2025 to operate those flights knows that,' Miller told Al Jazeera. The US government has awarded CSI Aviation $165m for deportation charter flights so far in the current year until August 31, and that could be extended to February 26. The data does not specify how much goes to each subcontractor. However, the March 1 $165m contract was modified on March 25 with an additional $33.7m tacked onto it just days before Avelo announced its deal. Al Jazeera was unable to confirm the specific dollar amount for the Avelo contract. CSI Aviation did not respond to Al Jazeera's request for comment. Avelo, led by Levy – an industry veteran who previously served as CEO of another US-based budget airline, Allegiant, and as chief financial officer for United Airlines – has stood by the deal despite the public outcry. 'We realize this is a sensitive and complicated topic. After significant deliberations, we determined that charter flying will provide us with the stability to continue expanding our core scheduled passenger service and keep our more than 1,100 Crewmembers employed for years to come,' Levy said in a statement to Al Jazeera, comments the company had also provided to other publications. Connecticut Attorney General William Tong pressed the airline for the terms of the deal. Avelo responded by instructing Tong to file a Freedom of Information Act (FOIA) request. FOIA requests typically take several months to process. Connecticut is home to one of Avelo's biggest hubs in New Haven. Avelo declined Al Jazeera's request for information on the terms of its agreement with CSI Aviation, saying in an email that it was not 'authorised to share the details of the contract'. Al Jazeera has submitted a FOIA request for the contract terms. ICE denied our expedited request for the contract terms, saying our request lacked 'an urgency to inform the public about an actual or alleged federal government activity, if made by a person primarily engaged in disseminating information'. The phone number ICE gave to challenge the request through its public liaison did not work when called. 'For reasons of operational security, US Immigration and Customs Enforcement does not release information about future removal flights or schedules in advance. However, the removal of illegal aliens who are unlawfully present in the United States is a core responsibility of ICE and is regularly carried out by ICE Air Operations,' a spokesperson for ICE told Al Jazeera. Several lawmakers, including Senator Alex Padilla of California and Senator Richard Blumenthal of Connecticut, have voiced concerns over these flights. 'Given the Trump Administration's mission to indiscriminately deport our nation's immigrants – without due process, in violation of the Constitution and federal immigration law, and, in some cases, in defiance of court orders – it is deeply disturbing that Avelo has determined that its partnership with ICE is 'too valuable not to pursue,'' Padilla's office said in a news release. Flight attendants have also raised safety concerns, saying there is no safe plan in the event of an emergency and it is only a matter of time before a tragic incident occurs. As first reported by ProPublica, ICE Air detainees have soiled themselves because they did not have access to bathrooms while being transported to prisons without due process. ICE has denied allegations that detainees lacked access to bathrooms during flights. Avelo's largest investor is Morgan Stanley Tactical Value, whose managing director, Tom Cahill, sits on Avelo's board. Morgan Stanley's fund invested an undisclosed amount in the airline's Series A funding round, the first major investment stage for a company. That round raised $125m in January 2020, weeks before the COVID-19 pandemic was declared a US and global emergency. A subsequent Series B round in 2022 brought in an additional $42m, $30m of which came from Morgan Stanley. Morgan Stanley Tactical Value remains Avelo's largest shareholder. Cahill, who has been with Morgan Stanley since 1990, has not publicly commented on the deal. He did not respond to Al Jazeera's request for comment. Morgan Stanley declined to comment. Avelo has also hired Jefferies Financial Group, an investment bank and financial services company, to raise additional capital in a new investment round, reportedly aiming to raise $100m, according to the Airline Observer, information that Avelo said is outdated. Jefferies did not respond to Al Jazeera's request for comment. Avelo's involvement in the deportation programme has sparked intense public backlash. Upon the launch of the flights, protests erupted at airports in Burbank, California; Mesa, Arizona; and New Haven, Connecticut. A petition calling for a boycott of the airline has garnered more than 38,000 signatures. Avelo did not comment on the petition. 'From a reputational perspective, someone in a boardroom somewhere made the decision that the hit to reputation wasn't as important as staying alive,' said Hannah Mooney Mack, an independent strategic communications consultant. Miller has taken action to raise awareness about the airline's recent contract, funding two billboards near Tweed New Haven Airport that criticise Avelo's participation in deportation flights. The signs read: 'Does your vacation support their deportation? Just say AvelNO!' 'I love almost all of the things that aviation does in helping bring people together and connect communities and things like that. This is decidedly not that. And it rubbed me the wrong way,' the congressman told Al Jazeera. 'I certainly understand that from a financial perspective there may be a need. I happen to disagree with it from a moral perspective and think it's abhorrent.' Miller said he spent $7,000 on the billboards and 96 people contributed to the effort. Avelo reportedly convinced billboard operator Lamar Advertising to take down the ads, citing copyright concerns. Miller has since sued Avelo on First Amendment grounds. He said he's fighting because he thinks people need to know about Avelo's contract. 'I don't like that this is happening, and I think other people should not fly Avelo as long as they are running these deportation flights.'
Yahoo
6 days ago
- Business
- Yahoo
New airline takes flight at Ford Airport with $49 nonstop trip to North Carolina
CASCADE TOWNSHIP, Mich. (WOOD) — A new airline has been added to Gerald R. Ford International Airport's offerings. Avelo Airlines on Friday announced it is now flying out of the Ford Airport, beginning with a twice-weekly direct flight to Raleigh-Durham International Airport in North Carolina. In June, Avelo will also add a route to Lakeland International Airport in Florida. Both flights will fly out on Mondays and Fridays. Avelo is offering one-way fares from Grand Rapids to North Carolina for $49, but with some caveats: That price is available for flights between Sept. 5 and Sept. 29, and it must be booked by May 30. Still, one-way fares currently appearing on the website range from $39 to $119. Allegiant offers $42 rates for two new nonstop flights from Ford Airport 'We're excited to welcome Avelo Airlines,' Gerald R. Ford International Airport Authority President and CEO Tory Richardson said in a release. 'These routes give West Michigan travelers convenient access to Raleigh-Durham's thriving tech and research triangle, and to the sunshine and family-friendly attractions of Central Florida.' Ford Airport has been touting its direct flight options as it works to add more. It currently has direct flights to almost 40 destinations, including both seasonal and year-round flights. Allegiant Air on Thursday added a nonstop flight to Myrtle Beach, South Carolina, and on Friday added a nonstop flight to Jacksonville, Florida. Earlier this month, Delta Air Lines announced it is adding a nonstop flight to Orlando starting in December. The airport has also been working to add a federal inspection station, which will make way for international direct flights, like a potential nonstop flight to Cancun. GR direct to Cancun? What it takes to add a new nonstop flight The airport, which saw a record-breaking 4.17 million passengers in 2024, is in the midst of a major $600 million project called Elevate. Crews are building a consolidated car rental facility and working on the terminal enhancement project, which will relocate ticket counters. The air traffic control tower is set to be relocated and a new parking garage is set to be built. In 2023, the airport opened a newly expanded Concourse A. Other recent additions include an indoor animal relief area and a sensory room, along with several food and beverage options. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
New York Times
16-05-2025
- Business
- New York Times
A Campaign Against an Airline That Flies Deportees for ICE Lands in Court
Avelo Airlines, a carrier that serves small cities mostly on the coasts, quashed a boycott campaign over its polarizing decision to operate federal deportation flights. Now, the creator of the campaign is suing to keep it going. Seth Miller, an independent aviation journalist and state lawmaker in New Hampshire, began the campaign last week with advertisements on two billboards near Avelo's busiest airport urging travelers to avoid the airline. The ads, near Tweed New Haven Airport in Connecticut, featured a modified Avelo logo and the message, 'Does your vacation support their deportation? Just say AvelNO!' Days later, a lawyer for the airline sent Mr. Miller a letter saying that he had violated Avelo's trademark. Mr. Miller said the airline also persuaded the billboard operator, Lamar Advertising, to take down the ads. In response, he sued the airline Friday afternoon in Nevada, where the airline is incorporated, asking a court to affirm that he was only exercising his freedom of speech. 'I have the right to raise objections to their business actions, just as much as they have the right to advertise their business,' Mr. Miller said in an interview. Avelo declined to comment. Lamar did not immediately respond to requests for comment. Avelo, which is based in Houston, began the deportation flights on Monday, despite a fierce backlash in recent weeks from consumers and lawmakers across the country. The airline's decision was unusual. Immigration and Customs Enforcement relies heavily on private carriers, but most are little-known charter airlines. Commercial airlines, like Avelo, typically avoid this kind of work so as not to get involved in politics. Avelo said it had carried out deportation flights under President Joseph R. Biden Jr. The airline is also under financial pressure and its chief executive, Andrew Levy, has described the opportunity as too good to pass up. Mr. Miller said he was disturbed to learn of the decision last month because he believed that the deportations were being carried with insufficient due process and that the flights were unsafe because of the how passengers were reportedly bound by shackles. 'This contract was signed after we knew that they were sending people to the wrong countries, that they were doing it without hearings,' he said. 'I think that's disgusting and needs to be called out.' Mr. Miller, a Democrat who lives in Dover, N.H., said he debated getting involved because he also reported on the business of aviation. After several conversations with his wife, he decided he had no choice. Mr. Miller posted on social media about the idea of starting a boycott campaign, created the advertisement and raised about $6,000 to pay for the billboards, he said. The ads were displayed starting on Monday, May 5. Four days later, Mr. Miller said he received the letter from the Avelo lawyer accusing him of trademark infringement and unfair competition. The airline said that it had heard of 'instances of actual confusion' among customers who mistakenly believed that Mr. Miller's billboard was affiliated with the airline. The lawyer said that Avelo could recoup damages of $150,000 per infringement and asked that the billboards and an associated website be removed by 5 p.m. on Friday to 'avoid any escalation of this matter.' Mr. Miller said he had no intention of taking down the ads and instead hired a lawyer to fight back. But a representative for the billboard operator, Lamar, told Mr. Miller this week that it had received a similar letter from Avelo and had taken down the ads to avoid getting involved in a legal fight. The argument behind the lawsuit Mr. Miller filed Friday is a simple one, said Charlie Gerstein, the lawyer representing him. The billboard makes clear that the ad was paid for by an organization that Mr. Miller founded for this purpose, Mr. Gerstein said. 'The First Amendment protects Miller's speech here and the principle underlying that is that Avelo can make its own speech,' he said. 'Avelo is free to respond to Miller in the marketplace of ideas but is not free to use baseless threats of litigation to silence him.' Mr. Miller was not alone in criticizing the airline's decision. Groups around the country, including the New Haven Immigrants Coalition, a collection of groups that support immigrants' rights, protested and started campaigns to pressure Avelo to drop its work with the government on deportation flights. Gen-Z for Change, a youth-led progressive group, introduced a tool last week that would allow people to overwhelm Avelo with useless applications in response to its job postings for the deportation flights. The Democratic governors of Connecticut and Delaware denounced Avelo, while lawmakers in Connecticut and New York released proposals to withdraw state support, including a tax break on jet fuel purchases, from companies that work with ICE. In a statement, the immigration agency described the backlash against Avelo as 'nothing more than a tired tactic to abolish ICE by proxy.'
Al Jazeera
15-05-2025
- Business
- Al Jazeera
Avelo Airlines faces backlash as it begins deportation flights
Avelo Airlines, a Texas-based budget carrier, is facing backlash from both customers and employees over its decision to operate deportation flights under a new contract with the Trump administration. Avelo, which has been struggling financially, signed a contract with the United States Department of Homeland Security (DHS) last month to transport migrants to detention centres inside and outside the US, according to an internal company memo reviewed by the Reuters news agency. On Monday, the airline flew its first flight under the deal from Arizona to Louisiana, data from flight-tracking services FlightAware and Flightradar24 showed. Avelo plans to dedicate three aircraft to deportation operations and has established a charter-only base in Mesa, Arizona, specifically for these flights, according to the company memo. The union representing Avelo's flight attendants called the contract 'bad for the airline', and one customer has helped organise a petition urging travellers to boycott the airline. US President Donald Trump has launched a hardline crackdown on undocumented immigration, including the deportation of Venezuelan migrants he accuses of being gang members to a maximum-security prison in El Salvador. Immigration authorities also detained and moved to deport some legal permanent US residents. Trump's policies have triggered a rash of lawsuits and protests. Tricia McLaughlin, assistant secretary for public affairs at DHS, said Immigration and Customs Enforcement (ICE) was deporting illegal aliens who broke the country's laws. She called the protests 'nothing more than a tired tactic to abolish ICE by proxy'. 'Avelo Airlines is a sub-carrier on a government contract to assist with deportation flights,' McLaughlin said in a statement. 'Attacks and demonization of ICE and our partners is wrong.' The airline on Wednesday confirmed its long-term agreement with ICE and said it was vital to Avelo's financial stability. It also shared a statement from CEO Andrew Levy acknowledging that it is a 'sensitive and complicated topic', but saying that the decision on the contract came 'after significant deliberations'. The statement added that the deal would keep the airline's 'more than 1,100 crewmembers employed for years to come'. Avelo said it will use three Boeing 737-800 planes in Mesa, Arizona. 'Flights will be both domestic and international,' the company said, declining to share more details of the agreement. Avelo, which launched in 2021, was forced to suspend its most recent fundraising round after reporting its worst quarterly performance in two years. In a message to employees last month, Levy said the airline was spending more than it earned from its customers, forcing it to seek repeated infusions of capital from investors. 'I realize some may view the decision to fly for DHS as controversial,' Levy wrote in the staff memo, which was reviewed by Reuters, but said the opportunity was 'too valuable not to pursue'. The Association of Flight Attendants-CWA, which represents Avelo's crew, has urged the company to reconsider its decision, which it said would be 'bad for the airline'. 'Having an entire flight of people handcuffed and shackled would hinder any evacuation and risk injury or death,' the union said. 'We cannot do our jobs in these conditions.' The Trump administration has deported hundreds of migrants labelled as Venezuelan gang members to El Salvador. Photos and videos have shown deportees in handcuffs and shackles. Customers have also expressed outrage. Anne Watkins, a New Haven, Connecticut, resident, said she has stopped flying with Avelo. She and her co-members at the New Haven Immigrants Coalition have launched an online petition urging travellers to boycott the airline until it ends its ICE flight operations. The petition has garnered more than 38,000 signatures. Watkins, 55, said the coalition also organised a vigil on Monday to mark the launch of Avelo's deportation flights. 'Companies can decide to operate in wholly ethical and transparent ways,' she said. 'Avelo is not choosing to do that right now.' Connecticut Attorney General William Tong, a Democrat, has threatened to review the state's incentives for Avelo, which has received more than $2m in subsidies and tax breaks. In California, Los Angeles resident Nancy K has co-founded a campaign called 'Mothers Against Avelo'. She plans to lead weekly protests every Sunday in May at Hollywood Burbank airport, one of Avelo's six operating bases.
Yahoo
15-05-2025
- Business
- Yahoo
Avelo Airlines faces backlash over Trump deportation flight contract
By Rajesh Kumar Singh (Reuters) - Avelo Airlines, a Texas-based budget carrier, is facing backlash from both customers and employees over its decision to operate deportation flights under a new contract with the Trump administration. President Donald Trump has launched a hardline crackdown on illegal immigration, including the deportation of Venezuelan migrants he accuses of being gang members to a maximum-security prison in El Salvador, and has also detained and moved to deport some legal permanent U.S. residents. Trump's policies have triggered a rash of lawsuits and protests. Avelo, which has been struggling financially, signed a contract with the U.S. Department of Homeland Security last month to transport migrants to detention centers inside and outside the U.S., according to an internal company memo reviewed by Reuters. On Monday, the airline flew its first flight under the deal, from Arizona to Louisiana, data from flight-tracking services FlightAware and Flightradar24 showed. Avelo plans to dedicate three aircraft to deportation operations and has established a charter-only base in Mesa, Arizona, specifically for these flights, according to the company memo. The union representing Avelo's flight attendants called the contract "bad for the airline," and one customer has organized a petition urging travelers to boycott the airline. Avelo is defending its decision. The airline on Wednesday confirmed its long-term agreement with U.S. Immigration and Customs Enforcement and said it was vital to Avelo's financial stability. It also shared a statement from CEO Andrew Levy acknowledging that it is a "sensitive and complicated topic," but saying that the decision on the contract came "after significant deliberations." The statement added that the deal would keep the airline's "more than 1,100 crewmembers employed for years to come." Avelo said it will use three Boeing 737-800 planes in Mesa, Arizona. "Flights will be both domestic and international," the company said, declining to share more details of the agreement. Avelo, which launched in 2021, was forced to suspend its most recent fundraising round after reporting its worst quarterly performance in two years. In a message to employees last month, Levy said the airline was spending more than it earned from its customers, forcing it to seek repeated infusions of capital from investors. "I realize some may view the decision to fly for DHS as controversial," Levy wrote in the staff memo, which was reviewed by Reuters, but said the opportunity was "too valuable not to pursue." "THE HELP OF CORPORATES" The Association of Flight Attendants-CWA, which represents Avelo's crew, has urged the company to reconsider its decision, which it said would be "bad for the airline." "Having an entire flight of people handcuffed and shackled would hinder any evacuation and risk injury or death," the union said. "We cannot do our jobs in these conditions." The Trump administration has deported hundreds of migrants labeled as Venezuelan gang members to El Salvador. Photos and videos have shown deportees in handcuffs and shackles. Customers have also expressed outrage. Anne Watkins, a New Haven, Connecticut, resident, said she has stopped flying with Avelo. She launched an online petition urging travelers to boycott the airline until it ends its ICE flight operations. The petition has garnered more than 38,000 signatures. Watkins, 55, also organized a candlelight vigil on Monday to mark the launch of Avelo's deportation flights. "Companies can decide to operate in wholly ethical and transparent ways," she said. "Avelo is not choosing to do that right now." Connecticut Attorney General William Tong, a Democrat, has threatened to review the state's incentives for Avelo, which has received over $2 million in subsidies and tax breaks. In California, Los Angeles resident Nancy K has co-founded a campaign called "Mothers Against Avelo." She plans to lead weekly protests every Sunday in May at Hollywood Burbank Airport, one of Avelo's six operating bases. "It's important to not only look at Trump because he's not really doing anything alone," she said. "He's doing it with the help of corporates."
