There could be a new airline flying from secondary airports to midsize and large markets in the US by the end of 2020.

The Los Angeles Times reports that the as-yet unnamed airline, currently operating as Houston Air Holdings Inc, is led by Andrew Levy, former chief financial officer at United Airlines.

Levy recently raised $125 million in funding for the venture, which will be used to lease B737-800 aircraft in 189-seat configuration for short-haul passenger service.

The company will launch with charter service and switch to scheduled service later this year.

“We’re going to grow at a measured pace,” said Levy. “We’re going to build the company a little bit like Allegiant, slowly and steadily,” referring to low-cost Allegiant Airlines, which he also co-founded.

The new airline will be based in Houston and look to serve markets with minimal competition from major carriers. Levy said the target market will be travellers who are price-sensitive and eager to avoid congested large airports.

“We’re not looking for world domination here,” he said. “This is about offering choice and taking advantage of a market where the fare structure is relatively high.”