|Founded||1997 (as WestJet Express)|
|Commenced operations||June 1998|
|Company slogan||Travel is our deal|
|Parent company||Allegiant Travel Co.|
|Headquarters||Enterprise, Nevada, USA|
|Key people||Maurice J. Gallagher, Jr. (Chairman and CEO)|
|Revenue||US$779 million (FY 2011)|
|Operating income||US$119 million (FY 2011)|
|Net income||US$49.4 million (FY 2011)|
|Total assets||US$707 million (FY 2011)|
|Total equity||US$352 million (FY 2011)|
Allegiant Air is an American low-cost airline owned by Allegiant Travel Co. (NASDAQ: ALGT) that operates scheduled and charter flights. Allegiant Travel Company is a publicly traded company with 1,800 employees and one billion USD market capitalization. The corporate headquarters are in Enterprise, Nevada, an unincorporated suburb of Las Vegas.
Allegiant Air was founded in January of 1997 by Mitch Allee (Owner, CEO), Jim Patterson (President) and Capt. Dave Beadle (Chief Pilot). The airline received FAA and DOT certification in June of 1998.
Allegiant was founded in 1997 under the name WestJet Express. After a trademark dispute with West Jet Air Center of Rapid City, South Dakota, and with the name's similarity to WestJet Airlines of Canada, the airline adopted the name Allegiant Air and received its operating certificate for scheduled and charter domestic operations in 1998. The airline also has authority for charter service to Canada and Mexico. Wholly owned by Allegiant Travel, the airline has over 1,800 employees.
Scheduled service began on October 15, 1998 between Las Vegas and the airline's original hub in Fresno, California, at the Fresno Yosemite International Airport, with Douglas DC-9-21 and DC-9-51 jetliners. Allegiant was also flying nonstop DC-9 service from the Lake Tahoe Airport nonstop to Burbank, Fresno and Las Vegas at this time. Shortly after the shutdown of WinAir Airlines, Allegiant Air opened a hub in Long Beach, California, mirroring WinAir's network. Allegiant was unable to bring in enough revenue to cover its costs and on December 13, 2000, Allegiant filed for Chapter 11 bankruptcy protection and Maurice J. Gallagher, Jr., the major creditor of the airline, gained control of the business during reorganization.
In June 2001, Gallagher restructured the airline to a low-cost model and moved the headquarters and operations to Las Vegas, where they remain as of 2013[update]. Having formerly worked with WestAir and ValuJet Airlines, Gallagher led the airline's transformation into its present form, focusing on smaller markets that larger airlines did not serve with mainline aircraft. Gallagher remains Chief Executive Officer and Chairman of Allegiant.
In March 2002, Allegiant successfully exited bankruptcy and entered into a long-term contract with Harrah’s to provide charter services to its casinos in Laughlin, Nevada, and Reno, Nevada. At the same time, the airline acquired its first McDonnell Douglas MD80 jetliner. From 2002 through 2004, the scheduled service business model was developed and, by 2004, Allegiant was flying from 13 small cities to Las Vegas offering bundled air and hotel packages.
In November 2006, Allegiant announced it had filed a registration statement with the Securities and Exchange Commission in anticipation of a planned initial public offering of its Common Stock. It is listed on the NASDAQ Stock Market under the ticker symbol "ALGT".
In July 2007, the airline announced plans to open a fourth focus city and operations base at Phoenix-Mesa Gateway Airport in Mesa, Arizona, connecting 13 cities already served by Allegiant and one new city to the Phoenix metropolitan area. The airline began service out of Mesa on October 25, 2007. The airport announced a 10,000-square-foot (930 m2) expansion in August 2008 which increased the number of gates from two to four and allowed Allegiant to triple the number of flights from Phoenix. The expansion was funded by a loan from Allegiant which will be repaid by passenger fees.
In August 2007, Allegiant announced plans to establish its fifth focus city and make an operations base at Fort Lauderdale-Hollywood International Airport, connecting other Allegiant cities to South Florida. The airline began service to Fort Lauderdale on November 14, 2007.
In January 2008, Allegiant opened its sixth base at Washington's Bellingham International Airport. The airline bases two McDonnell Douglas MD-80 aircraft in Bellingham as part of the expansion. Routes served exclusively from Bellingham include Las Vegas, Palm Springs, San Diego, San Francisco and Phoenix. Expansion in Bellingham has been largely driven by its proximity to Vancouver, British Columbia.
Along with Southwest Airlines, Allegiant was the only major United States airline to make a profit in the first quarter of the oil-driven economic crisis of 2008. Allegiant’s unique strategy has allowed the company to remain profitable every quarter since 2003 - 39 consecutive quarters - despite industry challenges that include fluctuating fuel costs and an unstable economy.
In February 2010, Orlando International Airport became Allegiant's eighth base. Just nine months later Allegiant, citing an inability to achieve a fare premium at MCO as anticipated, a strong passenger preference for Orlando Sanford International Airport, higher costs at MCO than expected and a more efficient operating environment at SFB, returned its Orlando area operations to Orlando Sanford International Airport.
In February 2010, Allegiant announced its ninth base at Grand Rapids' Gerald R. Ford International Airport in Michigan. The airline based two McDonnell Douglas MD-80 aircraft in Grand Rapids as part of the expansion. On August 12, 2011, Allegiant announced the discontinuation of the Grand Rapids base as of October 31.
In November 2011, Allegiant closed its Long Beach facility and consolidated all Los Angeles area flights at Los Angeles International (LAX).
In March 2010, Allegiant announced the purchase of six used Boeing 757-200 jetliners as part of plans to begin flights to Hawaii, with deliveries from early 2010 to the fourth quarter of 2011. It gained the approval for type with the FAA in July 2011, and then worked with the FAA to obtain the appropriate ETOPS rating in order to be able to serve Hawaii. Allegiant currently operates nonstop Boeing 757 service to Honolulu from Bellingham, WA; Boise, ID; Eugene, OR; Fresno, CA; Las Vegas, NV; Phoenix/Mesa, AZ; Santa Maria, CA; Spokane, WA and Stockton, CA, and also flies nonstop from Bellingham, WA to Maui.
Corporate affairs 
The corporate headquarters are in Enterprise, unincorporated Clark County, Nevada. The building is located in a business park that, as of 2008, is new. The building has no signage on the front stating that it is the headquarters of Allegiant, but the roof has the words "Allegiant" prominently visible from above. The facility's front desk is a replica of an MD-80 tail.
Business model 
Allegiant operates a business model focused on leisure travelers, who have different travel habits and needs than business customers. Allegiant has several primary destinations, such as Las Vegas or Orlando, which have high seasonal demand among vacationers. On the other side of the air route, Allegiant caters to smaller, second-tier cities by offering direct flights to holiday destinations, compared to major carriers which may only offer service via a connecting flight through a big-city hub.
A core focus of the airline is to maintain low costs. Allegiant prefers to use smaller/secondary airports where landing fees cost less, such as Orlando Sanford International Airport and Phoenix-Mesa Gateway Airport, although some major airports are also used, including McCarran International (Las Vegas, NV) and Fort Lauderdale-Hollywood International Airport. The airline also benefits from a reduced schedule when compared to the major airlines. By operating routes two or three times per week instead of daily, fewer crews are required and aircraft maintenance schedules (which are based on flight hours) are spread over longer periods of time.
Allegiant generates significant ancillary revenues from items such as baggage fees and on-board food and beverage service. Additionally, the airline generates revenues from partnerships with hotels, car rental companies and tourist attractions at its primary destinations. Finally, Allegiant maintains control over pricing by offering flights exclusively through its Web site, where ancillary products can also be purchased with the flight.
Allegiant Air targets small cities with limited passenger airline service. Many of the airline's markets, such as Peoria, Illinois, are served only by commuter service requiring a connection at an airline hub. Allegiant, as of October 2009, has competition on only five of its 136 routes.
Other Allegiant destinations are secondary airports that are close to large metropolitan areas. For instance, Allegiant, Frontier Airlines, and Spirit Airlines are the only carriers operating at Phoenix-Mesa Gateway Airport.
In February 2010, Allegiant announced it would begin service from Long Beach, California, but did not immediately disclose where it will fly. On July 1, 2010 Allegiant flew its first flight into Long Beach Airport. The airline also announced it would fly from Bellingham International Airport and Stockton several times a week; however, there is no service at present flown between these two cities although Allegiant continues to serve Stockton with flights to Honolulu and Las Vegas. Long Beach service was abandoned in November 2011. On September 28, 2010, Allegiant announced it would begin service from Bakersfield, California to McCarran starting November 17, 2010. This service has since been discontinued by the airline. In August of 2012, Allegiant announced service from Harrisburg International Airport (MDT) to several markets in Florida.
The airline's focus is on leisure travelers, particularly those in colder northern climates, going to warm-weather tourist destinations such as Punta Gorda, Tampa Bay, Las Vegas, Orlando, or Phoenix. The airline offers a lower frequency of flights and no amenities such as frequent flier points or on-board entertainment. As a result, Allegiant carries few business passengers.
The airline, which attracted investment from the Ryan family of Ireland, owners of Ryanair, follows a similar model which seeks ancillary revenue in addition to ticket revenue. Allegiant earns ancillary revenue through sales of food, beverages, and souvenirs on board as well as charges for checking luggage and advance seat assignments. The airline also offers hotels, cars, show tickets, and tour packages on its website, which generates commissions. The airline sold 400,000 hotel room nights in 2008. As of October 2009, the St. Petersburg Times reported that ancillary revenues were $33.35 per passenger. The total contribution of hotel and rental car packages is up to one-third of the airline's revenue.
Regarding the airline's reliance on additional revenue, Allegiant CEO Maurice Gallagher stated in an article that appeared September 2009 issue of the business journal, "Fast Company", that the advantages of this pricing structure was psychological. He went on to say, "We collect $110 from you at the end of your trip. If I tried to charge you $110 up front, you wouldn't pay it. But if I sell you a $75 ticket and you self-select the rest, you will."
In February 2011, Allegiant announced it has have proposed a new idea for combating increasing ticket prices. The company made a proposal for selling two types of tickets to passengers. The first being a fixed fare at a higher rate and the second being one that is sold at a significantly lower price, but at the time of departure, fees can be added on based on the price of aviation fuel. Many passengers are in uproar about it, others are interested. In 2012, the U.S. Department of Transportation banned the practice as part of wider regulations that also require taxes and fees to be included in airfares. Allegiant, along with Spirit Airlines and Southwest Airlines, are suing the DOT in court to overturn these new rules.
Charter information 
Allegiant also operates air charters which contribute 7% of its revenue. The company has two contracts with Harrah's Entertainment with two aircraft based at Reno-Tahoe International Airport and Laughlin/Bullhead International Airport to ferry customers to Harrah's casinos. Additionally, Allegiant has two aircraft based at Tunica Municipal Airport to support a charter contract to transport gaming customers to Harrah's casinos including Tunica and New Orleans. One additional aircraft is based in Wendover to support charters for Peppermill casinos. It also transports firefighters for the United States Forest Service as well as college basketball teams.
Allegiant had a contract to supply charter flights from Miami to four cities in Cuba. Flights began in June 2009. One aircraft was committed to the contract. The contract was for fixed-fee flying, meaning all the airline was required to do was provide the dry aircraft and the flight crew. The contractor was responsible for all other costs including fuel. However, Allegiant ended this service in August 2009.
The airline tends to offer lower fares, which requires strict cost control. Part of the airline's lower cost structure includes operation of MD-80 jets, which the airline can purchase and refurbish for as little as $4 million. While the aircraft are less fuel-efficient than newer planes, Allegiant is able to purchase them outright for one-tenth the cost of a new Boeing 737. Given the low cost of ownership, Allegiant is able to fly the planes less (seven hours per day versus 13 hours per day at JetBlue), which helps keep labor costs lower. Overall, Allegiant operates with 35 full-time workers per plane compared to more than 50 at other carriers. Allegiant schedules their crew members so that they always return to their domicile at the end of the day, thus avoiding the need for hotel rooms which can be a costly expense for airlines.
The airline seeks to maintain a low permanent operating cost at the airport. Allegiant rents ticket counters on an hourly basis and in Chattanooga, Tennessee and Springfield, Missouri, many duties are handled by airport employees contracted to Allegiant.
The cost of ticket sales is reduced by selling tickets on its website. The toll-free number was eliminated and Allegiant does not utilize Internet travel agencies.
Criticism of the business model 
Some airport officials have criticized Allegiant for shutting down routes or leaving markets quickly if they are not immediately profitable. In Kinston, North Carolina, the airport authority invested $60,000 in advertising Allegiant's routes and asserted that the load factor was 90% or better. They contend that the airline left the market when they did not earn enough ancillary revenue after only one year.
In Columbia, South Carolina, the carrier departed in February 2007 after less than two months of daily flights to St. Petersburg, Florida, as loads started at 3/4 full and then dropped to half full by February. Allegiant returned to Columbia in February 2009, but pulled out again in late 2009.
The airport director in Worcester, Massachusetts, felt that Allegiant reneged on a commitment to serve the airport for five years given the use of federal grants to assist its startup. However, the airline responded that the market was immediately unprofitable and starting service there was a poor decision; flights were reported to be 80% full. Allegiant's flights average 90% full.
In Lafayette, Louisiana, Allegiant's service to Las Vegas lasted less than four months before the airline ceased all flights.
The U.S. Department of Transportation also cited the airline in 2009 for not including their "convenience fee" in the initial price quote on the website.
Criticism of workers' right to organize 
Flight attendants at the carrier voted to organize their workgroup under the Transport Workers Union of America in December 2010, citing scheduling concerns among other issues in their work rules and the airline's pilots elected to vote on whether to join the International Brotherhood of Teamsters in July, 2012.  Allegiant's chairman and CEO, Maurice J. Gallagher Jr., has been critical of the unionization of airline employees and has stated that "Unionization is one of those things that clogs the arteries and makes you less quick and not as nimble as you need to be on top of your game... In this industry and others that are heavily unionized, you ultimately end up with bankruptcy as the primary driver" 
Allegiant Vacations 
Allegiant Vacations functions as an in-house package vacation vendor. The company has arrangements with 34 hotel properties in Las Vegas and 21 in the Orlando, and Daytona Beach, Florida, areas. The vacations division also has partnerships with several rental car agencies and show-ticket vendors.
Allegiant currently flies from 71 cities to one of 8 destinations throughout the United States. With a few exceptions, all bookings are considered "one way" and begin or end at one of the nine focus cities/operational bases; therefore, travel reservations between any of the other cities must be reserved through separate bookings and checked luggage claimed and re-checked in one of the nine focus cities.
As of May 2013, the Allegiant Air fleet consists of the following aircraft:
|Airbus A319-100||2||1||7||156||Orders are ex-easyJet jets to be delivered between 2012-2015.|
|Airbus A320-200||—||4||5||177||Orders are ex-Iberia jets to be delivered between 2013-2014|
|McDonnell Douglas MD-82||2||—||—||150|
|McDonnell Douglas MD-83||48||—||—||166|
|McDonnell Douglas MD-87||1||—||—||130||Used only for Charter Flights. To be retired in 2013 |
|McDonnell Douglas MD-88||6||—||—||150|
As of May 2013, the average age of the Allegiant Air fleet is 21.8 years.
Allegiant Air is the only US-based carrier to operate all five subtypes of the MD-80 series. On January 4, 2010, the SAS Group announced the sales of 18 surplus MD-80 series aircraft to Allegiant Travel Company. The aircraft were built from 1985 to 1991. Allegiant's smaller MD-87's are currently used exclusively for charters.
In March 2010, Allegiant announced the purchase of six Boeing 757-200 aircraft from Thomson Airways for flights to Hawaii with the delivery of the first two in the following months. In September 2011, Allegiant Air introduced the 757 into service from their main hub in Las Vegas. Allegiant later announced that the 757's will be used for service to Hawaii. Fresno and Las Vegas were the inaugural destinations with nonstop service to Honolulu, Hawaii. Nonstop service to Honolulu has since been added from Bellingham, Boise, Eugene, Phoenix (via Mesa Gateway Airport), Santa Maria, Spokane, and Stockton. Allegiant also now flies nonstop between Bellingham and Maui with the Boeing 757.
In September 2010, Allegiant announced plans to reconfigure their MD-80 fleet from 150 seats to 166 seats per plane. The project would involve removing galleys from the planes to add the 16 additional seats. The 130-seat MD-87 jets the company owned would not be reconfigured.
In July 2012, Allegiant announced the future addition of the Airbus A319-100 aircraft to its fleet. The aircraft are used and formerly belonged to easyJet and Cebu Pacific. Two former easyJet aircraft are to enter service in 2013, 1 in 2014, and 6 in 2015. In December 2012, Allegiant cancelled the agreement with Cebu Pacific citing an inability to agree on economic provisions. On May 1, 2013, Allegiant announced the purchase another A319 aircraft previously operated by easyJet and would enter service in the third quarter of 2013. 
In December 2012, Allegiant announced their intention to acquire up to 9 Airbus A320-200 aircraft to the fleet. These aircraft are used and belong to Spanish flag carrier Iberia. Seven of the A320s are planned for delivery in 2013 and will be used for growth into new markets, including destinations in Mexico, the Rocky Mountains as well as airfields such as Charlottesville and Shenandoah Valley in Virginia, and Trenton, New Jersey. By the end of 2013, Allegiant plans to reduce their overall MD-80 fleet to 52 planes.
Accidents and incidents 
- On March 9, 2007, Allegiant Air Flight 758, a McDonnell Douglas MD-80 aircraft that took off from Pease International Airport in Portsmouth, New Hampshire, experienced a hydraulic failure that prevented the nose landing gear from deploying. The plane made a safe landing at Orlando Sanford International Airport, with only one minor injury sustained in the aircraft evacuation.
- On October 8, 2010, Allegiant Air Flight 700, a McDonnell Douglas MD-80, caught fire in the right engine shortly after departing the gate at Orlando Sanford International Airport. The fire was quickly extinguished, and the passengers safely exited the plane with no injuries being reported. The flight was scheduled to depart for Roanoke Regional Airport in Roanoke, Virginia, at 7 a.m.
Awards and recognition 
- Forbes Magazine: America’s 100 Best Small Companies: Listed at 33
- Federal Aviation Administration's (FAA) Aviation Maintenance Technician (AMT) Diamond Award of Excellence: 2009 and August 2010
- Fortune 100's Fastest Growing Companies: Listed at 25
- Aviation Week: Top Performing Low Cost Carrier
- Norwood, Tom; Wegg, John (2002). North American Airlines Handbook (3rd ed.). Sandpoint, ID: Airways International. p. 8. ISBN 0-9653993-8-9.
- Allegiant Travel Company (ALGT) annual SEC income statement filing via Wikinvest
- Allegiant Travel Company (ALGT) annual SEC balance sheet filing via Wikinvest
- "Company Profile for Allegiant Travel Co (ALGT)". Retrieved April 27, 2010.
- "ALLEGIANT AIR ANNOUNCES NEW BASE IN PHOENIX-MESA: Airline to Launch Low-Cost Service Oct. 25" (Press release). Allegiant Air. July 31, 2007. Retrieved July 31, 2007.
- Art Thomason (August 26, 2008). "Allegiant funds Mesa airport expansion". Arizona Republic, archived at website.org. Retrieved September 18, 2008.
- "Allegiant to open base at Bellingham International Airport". Allegiantair.com. Retrieved 2012-10-15.
- Reister, Cami (August 12, 2011). "Allegiant Airlines to close its Grand Rapids base, reduce destinations". The Grand Rapids Press. Retrieved 2012-10-15.
- "Allegiant to acquire 757s for service to Hawaii". Flightglobal.com. March 6, 2010. Retrieved March 6, 2010.
- Sinco, Jennifer (2011-07-07). "Allegiant plans to fly to Hawaii by summer 2012". BusinessWeek. Retrieved 2012-10-15.
- "Contact Us - Allegiant Air. Retrieved on January 2, 2011. "Allegiant Travel Company 8360 S. Durango Drive Las Vegas, NV 89113". Allegiantair.com. Retrieved 2012-10-15.
- "American FactFinder". Factfinder.census.gov. Retrieved 2012-10-15.
- Brown, David Parker (December 30, 2010). "Touring Allegiant Air's Headquarters in Las Vegas". Seattle Post-Intelligencer. Retrieved January 2, 2011.
- Justin Bachman (May 14, 2008). "Allegiant: The Other Profitable U.S. Airline". Business Week, archived at webcite.org. Retrieved August 15, 2008.
- Charisse Jones (October 21, 2009). "Allegiant profits by catering to passengers in small areas". USA Today.
- [dead link]
- "Allegiant Air begins service to Long Beach". Press-Telegram. Retrieved March 11, 2011.
- BY JOHN COX, Californian staff writer. "Flights to Las Vegas could be just the start". Bakersfield.com. Retrieved March 11, 2011.
- Donna Hogan (July 19, 2008). "Low-cost airline helps Gateway buck trends". East Valley Tribune, archived at webcite.org. Retrieved August 15, 2008.
- Donna Hogan (September 23, 2007). "Allegiant Air adds Mesa airport as a hub". East Valley Tribune, archived at webcite.org. Retrieved August 15, 2008.
- Jeff Bailey (September 21, 2006). "Flying Where Big Airlines Aren’t". New York Times. Retrieved August 15, 2008.
- Peter Pae (May 13, 2009). "Allegiant Air's prudent ways help it soar amid slump in travel". Los Angeles Times, archived at webcite.org. Retrieved May 17, 2009.
- Greg Lindsay (September 1, 2009). "Heard of Allegiant Air? Why It's the Nation's Most Profitable Airline". Fast Company. Retrieved March 11, 2010.
- Steve Huettel (October 21, 2009). "Allegiant Air most profitable airline in the country". St. Petersburg Times.
- "Airline Proposes Fluctuating Ticket Prices". KSN 3 News. April 8, 2011. Retrieved April 12, 2011.
- Richard N. Velotta (May 15, 2009). "Las Vegas-based Allegiant sets sights on – no kidding – Cuba". Las Vegas Sun. Archived from the original on 17 May 2009. Retrieved May 17, 2009.
- Jane Roberts (December 20, 2007). "Tunica hopes for more flights". Memphis Commercial Appeal. Retrieved May 17, 2009.
- "Allegiant to take over Wendover flights : Elko Nevada News". Elkodaily.com. 2010-10-08. Retrieved 2012-05-25.
- "Allegiant Air Raises 3Q Capacity View, Trims 4Q Estimates". Wall Street Journal, Dow Jones Newswires. August 24, 2009.
- Jerry Cornfield and David Chircop (August 5, 2008). "Allegiant loved in some cities, but not all". The Herald (Everett, Washington), archived at website.org. Retrieved August 15, 2008.
- Neil Nadel (September 16, 2006). "Chattanooga Airport Employees to Handle Baggage, Ticketing". WDEF-TV, Chattanooga. Retrieved August 15, 2008.
- Tim O'Reiley (July 3, 2012). ""Allegiant Air could face third union battle in less than two years"". Las Vegas Journal-Review. Retrieved 2012-10-15.
- "Allegiant Air". ch-aviation.ch. Retrieved 2013-05-13.
- "Management Presentation - Forward Looking Statements". Files.shareholder.com. Retrieved 2012-11-17.
- "Allegiant cancels A319 deal with Cebu Pacific". flightglobal.com. 2012-12-28. Retrieved 2012-12-31.
- "Allegiant Air Fleet Details and History". planespotters.net. 2013-05-08. Retrieved 2013-05-13.
- Business Wire (2010-01-04). "SAS sells 18 MD-80 surplus aircraft to Allegiant Travel Company". Business Wire. Retrieved 2012-10-15.
- "Allegiant - Allegiant Travel Company to Purchase Six Boeing 757 Aircraft". Ir.allegiantair.com. 2010-03-05. Retrieved 2012-10-15.
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|Wikimedia Commons has media related to: Allegiant Air|
- Allegiant Travel
- Franklin, John (November/December 2005). "Allegiant Air: Finding a Niche in Las Vegas and Orlando". Airliners: The World's Airline Magazine (World Transport Press). pp. 35–39.