Two Startups Have Joined To Launch an All-Business Class Airline in the U.S. — But Face Enormous Challenges Right Away

Two airlines that faced significant headwinds are teaming up to offer a new all-business class product in the United States, and I’m both excited and skeptical that this will work.

Northern Pacific Airlines Has The Authority To Be An Airline, Needs Something To Do

Northern Pacific picked up used Boeing 757s, three quarters of them from American Airlines, and wanted to fly between the mainland U.S. and Asia via Anchorage. I was always skeptical this would work, but restrictions barring U.S. airlines from overflying Russia put a nail in those plans. The rebranded as New Pacific and talked about flying between the U.S. and Mexico, and basing out of Saipan in the Northern Mariana islands. They finally offered some limited short domestic flights before ending commercial service in April 2024.

In the process they offered a scammy-sounding investment pitch, akin to a crypto scam, and didn’t bolster confidence further when they announced their frequent flyer currency would be what, too, seemed like a crypto scam (“FlyCoin”).

They’re now in the sports and corporate charter business with 757s configured with 78 business class seats. They have an air operator’s certificate. And they’re looking for a business model.

Maldives All Business Class Startup BeOnd Wants To Go Global

BeOnd is an all-business class startup out of the Maldives, with huge ambitions for growth. They’ve had teething problems – an inability to sell out their flights, operational challenges, and ultimately the Maldives market is highly seasonal. They fly two Airbus narrowbodies – A319 (44 seats) and A321 (68 seats) with flat business class – but have announced plans to grow to dozens. And they can only do this by basing planes in other parts of the world.

These Two Airlines Will Team Up, Launch BeOnd America

New Pacific Airlines and beOnd announced “beOnd America,” where New Pacific will operate flights marketed under the beOnd brand, collaborating on customer experience, scheduling, and network development. This will make the U.S. will be a “key pillar” of beOnd’s multi‑air operator’s certificate strategy.

Eight aircraft will operate with the beOnd brand and product. Routes and timing are “subject to regulatory approvals.”

• Beond needs New Pacific, because by law U.S. domestic flights have to be operated by U.S. airlines – and foreign airlines are limited to 25% stakes in domestic carriers.

• New Pacific has all of the regulatory approvals it needs to operate flights – except that they need new permission to operate in commercial service (under part 121, like a regular scheduled airline such as United).

New Pacific ceased scheduled operations on April 5, 2024 and shifted to charter-only. Under DOT rules, when a carrier ceases scheduled passenger service its interstate scheduled certificate is suspended. After one year of no scheduled flying, DOT revokes it for dormancy, unless the carrier has its fitness redetermined and resumes flying.

It’s been more than a year, so to sell scheduled flights again, New Pacific needs the Department of Transportation to re‑bless its fitness. I’m not seeing a filed DOT docket – or a fleet transaction.

How Can beOnd Launch?

One near‑term path would be to start public charters marketed as “beOnd America.” They’d sell individual seats (under part 380) on charter flights (operated under part 135) and then move to scheduled once DOT fitness is re‑determined. The language “subject to regulatory approvals” fits that sequencing.

beOnd’s brand promise is all‑lie‑flat narrowbodies with a minimalist soft product like tablets for inflight entertainment. That’s incompatible with New Pacific’s current Boeing 757 VIP charter configuration (recliners, not fully flat seats). To claim “beOnd brand and product” across eight aircraft, one of two things must happen:

• Airbus path: New Pacific adds A319/A321 types to its fleet (FAA D085 list), brings in N‑registered Airbus in beOnd layouts, and crews and maintains. That requires pilot and mechanic training, manuals, minimum equipment lists, and (if Hawaii/Caribbean overwater) ETOPS approvals. That’s doable but takes time.

• Boeing 757 retrofit: New Pacific converts 757s to true lie‑flat. That would mean capital spending and approvals, too. It would mean walking away from the current charter business. And it doesn’t get them to 8 planes, since it appears they only have 3 left. So I would think this is less likely.

BeOnd has said they have big plans to grow the Airbus narrowbody fleet so perhaps the 8 aircraft will be Airbus planes leased by BeOnd and registered in the United States to New Pacific.

What Markets Could They Serve?

All business class is tough. Premium markets are limited, and even there airlines often find they don’t fill an entire plane with premium demand. Once they’re flying to sell business class tickets, that extra space can be used to carry coach passengers. beOnd won’t have that luxury. However, they might consider:

• Northeast – Caribbean: New York and to a lesser extent Boston to Turks and Caico, St. Lucia, Barbados, St. Maarten. This is heavily winter-seasonal.

• Northeast – Mexico: New York to Cabo, Puerto Vallarta, Cancun, Cozumel. This is heavily winter-seasonal.

• West Coast – Hawaii: out of LA and San Francisco but this requires ETOPS certification.

• One-off event flights: Las Vegas during CES, Austin for Formula 1, Miami during Art Basel and then flights for the Super Bown and Final Four.

• Seasonal U.S. domestic leisure peaks: New York and Los Angeles to Vail, Jackson Hole, Big Sky at peak times (this wouldn’t work with the 757, and likely not an A321).

This Follow’s beOnd’s Long-Term Strategy

I spoke with BeOnd’s Chairman and CEO last year. I’ve was skeptical of filling an all business class plane even to the Maldives (most airlines go with a mix of products for a reason), skeptical of their limited schedules, and of the limited peak season for Maldives trips. You really want to go November through March.

So they needed a counter-seasonal hub to base planes in during the off-season. But what markets support all business class short- and medium-haul service? He told me that “Maldives is proof of concept and the crown jewel” and that there would be more once Maldives works out and that seasonal destinations “become year-round destinations.”

When they do take on another destination, he’d need a different air operator’s certificate. And they might then choose a different aircraft type, though they hope to stay all-Airbus for the lower cost and complexity that comes with fleet commonality.

What surprised me is that he seemed to suggest that each destination would have its own dedicated fleet. While an airline based in Southern Europe would need a different “AOC” I assumed they’d lease planes from the first one. Move your fleet to the Maldives for November through April, then southern Europe for May through October. But that’s not what they’re doing here – just like he said.

I’m Excited But Skeptical

I love premium products, and innovative ideas. So I’m rooting for Beond and New Pacific to succeed. But whenever I get excited about a new concept in aviation, I’m reminded of Friedrich Nietzsche’s admonition that ‘one cannot fly into flying’.

“He who would learn to fly one day must first learn to stand and walk and run and climb and dance; one cannot fly into flying.” Thus Spoke Zarathustra

Their shot at succeeding as a scheduled airline seems pretty tough. Pure leisure all‑business class is hyper‑seasonal. Selling tickets without a strong loyal customer base or tie-in to an established frequent flyer program is hard. And they won’t have the same schedule frequency, at least at the start, that larger airlines can offer.

Meanwhile, cost per seat mile on 44 – 68 seat narrowbodies is off the charts. They need to feel these seats at super premium prices. beOnd’s execution record (they haven’t delivered on their growth promises) doesn’t inspire confidence. Marrying two startups with checkered histories doesn’t reduce risk. There are days where this can work, but I’d also imagine we’ll see a lot of discount packaged inventory sold through resorts (bundled with rooms to keep the discounts opaque).

The thing to do here is likely watch filings in DOT docket DOT‑OST‑2021‑0146 (although it could potentially come in a new docket) for New Pacific’s fitness redetermination to resume scheduled passenger service, and for any Part 380 prospectus for public charters branded “beOnd America” as wlel as for updates adding Airbus A319/A321s to New Pacific’s D085 fleet list.