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Houston Air (XP, Houston Hobby) is planning to take its first B737-800, on dry-lease from GECAS, within days as it prepares to launch scheduled operations focusing on connecting second-tier cities in the United States with large leisure markets, founder Andrew Levy told Bloomberg.

The airline, which is based on XTRA Airways (XP, Fort Lauderdale Int'l), will first operate charter flights during summer 2020 before venturing into the scheduled market later this year. Levy did not disclose the target size of the fleet, but he confirmed that the B737-800s would be outfitted in a single-class configuration for up to 189 passengers.

"The best way to compete in the airline industry is to not compete. I think that's what we did at Allegiant Air, and that's what we're looking to do here... In the US market, even a small niche can be a large opportunity. This is about offering choice and taking advantage of a market where the fare structure is relatively high," Levy said.

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