Breeze Airways, a low-fare carrier founded by aviation entrepreneur David Neeleman and headquartered in Cottonwood Heights, will expand its Utah operations over the next 10 years and add 570 jobs to its local workforce. As part of a post-performance tax reduction incentive award with the state, the airline said it will spend $4.5 billion on the expansion. Photo courtesy of Breeze Airways.
AEROVIRONMENT TO BRING 517 JOBS
Brice Wallace
Business Journal
A pair of companies that put things into the sky plan to expand in Utah, with each adding more than 500 employees in Salt Lake County.
Breeze Aviation Group Inc., a Cottonwood Heights-based company that provides passenger air service, will spend $4.5 billion and add 570 jobs over the next 10 years. Virginia-based AeroVironment Inc., which produces unmanned aircraft systems and tactical missile systems, will grow by 517 new jobs over fifteen years in a $42 million project.
Both companies were approved for project incentives by the Governor’s Office of Economic Opportunity board at its February meeting. AeroVironment also was awarded a tax incentive from the Utah Inland Port Authority board.
Breeze serves 68 cities in 31 states, mostly along the U.S. East Coast, “which is actually why there was serious consideration to moving there, but Utah’s been so great, we’re actually really happy to be staying here,” Eric Fletcher, vice president of government and airport affairs, told the GOEO board. “Utah has been fantastic to us.”
Founded by aviation entrepreneur David Neeleman, Breeze provides direct air service at underserved secondary markets. Its first flights were in May 2021. Last year, it moved over 4 million passengers, a figure expected to reach 6 million this year. Revenue is projected be about $1 billion this year. The company had its first profitable quarter in the 2024 fourth quarter.
The company has between 2,200 and 1,300 employees, including about 650 in Utah. In addition to its headquarters, it has a training center near Salt Lake City International Airport and offers 10 routes from Provo Municipal Airport and one route from Ogden-Hinckley Airport.
“Utah has proven to be a great location for us to build Breeze, and establishing our headquarters here has had many benefits,” Neeleman, the company’s CEO, said in a prepared statement. “With a thriving economy, low cost of living, and vibrant community atmosphere, Utah offers both a strong environment for business growth and a desirable place for our team members to live and work.”
GOEO officials said Utah competed with other states for the headquarters expansion project. “This is one Utah had to fight for, so we’re really excited to get this announcement, Eric,” Lance Soffe, GOEO’s senior business development director, told Fletcher during the GOEO board meeting. “We want Breeze here. It is, like I said, a disruptor and a company that we really want, and losing this company would have been a big loss.”
The board approved a tax credit incentive of about $11.4 million over 10 years for the Breeze project from the state’s Economic Development Tax Increment Financing (EDTIF) program. New state tax revenue is projected to be over $38 million during that time, and total wages are expected to reach nearly $780 million. The new jobs are expected to pay an average of $141,902. The board’s acting chair, Jesse Turley, recused himself from the incentive discussion and vote.
“We’re also excited for your growth and cheering you on for continued success,” board member Katelin Roberts said, adding that GOEO was “very excited to help you grow in any way we can. … We’re excited to give more accessibility to all these smaller towns and hopefully lots of new jobs in Utah.”
“Investing in aerospace fuels Utah’s economy, creates high-paying jobs, and enhances access to affordable, convenient air travel,” Ryan Starks, GOEO’s executive director, said in a prepared statement. “Expanding air travel options strengthens our tourism industry, boosts business growth and connects Utah to the world, making it easier for residents and visitors to experience all our state has to offer.”
“We are proud to have Breeze Airways call Cottonwood Heights home, with its headquarters at the iconic Cottonwood Corporate Center, nestled at the base of the Wasatch Mountains,” said Mike Weichers, Cottonwood Heights mayor. “Its commitment to innovation and growth has brought valuable jobs and economic vitality to our community, and we look forward to its continued success taking flight from right here in our city. We appreciate Breeze’s engagement in our community, including David Neeleman’s participation in a promotional video for the city. We wish the airline continued success and hope to partner with it as it reaches its goals.”
The state incentive is the second for Breeze. In May 2022, the company was approved for a tax credit of up to $270,037 over five years for an $8 million project to add 78 high-paying jobs at the Provo airport.
In a news release, AeroVironment said its new advanced manufacturing facility will be called FreedomWerx and said production will begin in the second half of 2025. While the company plans to grow by 517 new jobs, its tax credit incentive is tied to 230 of those jobs, which will pay an average of $136,338.
In its 54th year, AeroVironment has about 1,200 employees at 13 U.S. locations, mostly in California.
Mark Lewis, an AV senior manager, told the GOEO board that Utah will become home to a production facility for its LMS (loitering munition systems) division. LMS allows warfighters to launch, fly, track and engage beyond-line-of-sight targets across land, maritime and air-launched environments, all while remaining at the battlefield’s edge.
The division’s primary customers are the U.S. government and more than 55 allied companies. Lewis said the division had more than 150 percent growth in its employee total in the past fiscal year and is expected to grow more than four times financially during the next three years.
The new production facility will have slightly more than 200,000 square feet. Most of the jobs will be skilled labor, including technicians, engineers, support staff and management.
AV produces intelligent, autonomous robotic systems that serves defense, government and commercial customers.
Wahid Nawabi, chairman, president and CEO, said the company’s autonomous precision-strike systems “have revolutionized modern warfare, providing warfighters with the ability to neutralize high-value threats with unprecedented accuracy while minimizing risk to friendly forces. This facility represents a critical step in our mission to expand manufacturing capacity, ensuring our forces have the technological superiority needed to deter and, if necessary, decisively defeat adversaries.”
The GOEO incentive is a tax credit of nearly $4 million over 15 years. New state tax revenue is estimated to be $15.8 million during that time. New total wages are expected to be $393.5 million.
“Utah is the ideal hub for advancing aerospace and defense technologies that are vital to national security and economic growth,” Starks said in a prepared statement. “Strategic investments like this create jobs, accelerate innovation, and reinforce Utah’s leadership in aerospace and defense. Supporting companies like AV strengthens our state’s economy while driving cutting-edge advancements in the industry.”
In addition to GOEO’s incentive, AV received approval from the Utah Inland Port Authority board for an incentive that allows up to 10 percent of AV’s property tax liability to be rebated over 25 years.
“AV’s expansion in Salt Lake County underscores Utah’s growing prominence in the aerospace and defense industries,” said Ben Hart, UIPA’s executive director. “By supporting strategic investments like this, UIPA is helping to create high-quality jobs, strengthen our state’s advanced manufacturing capabilities, and enhance critical infrastructure to support long-term economic growth. We are excited to work alongside AV and our partners to ensure their success in Utah.”
“We’re thrilled to welcome AV to Salt Lake City,” said Scott Cuthbertson, president of the Economic Development Corporation of Utah. “As a leading defense tech company, AV’s expansion will not only bring high-quality jobs to the region but will also further solidify Salt Lake City’s position as a premier hub for cutting-edge industries. We look forward to the long-term contributions the company will make to our economy and community.”
“We’re excited to welcome AV and the over 500 jobs it will bring to Salt Lake City,” said Lorena Riffo-Jenson, director of Salt Lake City’s Department of Economic Development. “Our city has a long history of being a place where cutting-edge tech companies come to flourish, and AV is a great fit for our aerospace cluster.”