Avelo Airlines Risks Subsidy Loss Over Deportation Flight Deal

Connecticut Attorney General William Tong has raised strong objections to Avelo Airlines’ involvement in deportation flights for the U.S. Department of Homeland Security, warning that the state may withdraw public support, including fuel tax exemptions and promotional efforts.
In a formal letter to Avelo’s CEO Andrew Levy, Tong requested clarification on the airline’s contract with Immigration and Customs Enforcement (ICE), especially regarding deportation policies involving children, alleged mistreatment, and cases that defy court orders. Tong gave Avelo until April 15 to respond, warning that failure to provide sufficient information could jeopardize state support.
Avelo has not confirmed whether it submitted a response by the deadline, but told ch-aviation: “We acknowledge the weight of these concerns and have received the CT Attorney General’s letter and will be discussing these concerns with Connecticut leaders as needed.”
The low-cost airline operates two major bases in Connecticut, at Hartford Bradley and New Haven airports. New Haven serves as Avelo’s largest base, accounting for 24% of its total capacity, with domestic flights to 27 U.S. cities. Hartford offers international services to Montego Bay and Punta Cana.
The scrutiny comes as Avelo seeks to raise up to USD100 million in new capital to support growth and reduce debt. According to the ch-aviation fleets module, Avelo operates a fleet of 20 aircraft, including eight Boeing 737-700s and twelve Boeing 737-800s.
The outcome of the state’s review could have financial and reputational consequences for the airline as it continues to expand operations across the U.S.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com