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WJE-FLY PEORIA (PIA) - LAS VEGAS (LAS) - 2005-06
FORMED IN 1997 AND STARTED OPERATIONS IN 1998. FORMERLY WESTJET EXPRESS. CHARTER PASSENGER, JET AIRPLANE SERVICES IN MID-SIZE SHORT-HAUL MARKET IN WESTERN USA.
3201 North Buffalo Drive, Suite B-9
Las Vegas NV 89129, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
JULY 1998: FOUNDER IS MITCHELL ALLEE, CHAIRMAN, PRESIDENT & CEO, CMS SOLUTIONS, SOFTWARE DEVELOPER, FOR AIRLINE APPLICATIONS.
STARTED AS "WESTJET EXPRESS AIRLINES" BUT HAD CONFLICT WITH WESTJET AIRLINES (WJI), CANADA, SO CHANGED NAME TO "ALLEGIANT AIR." DEPARTMENT OF TRANSPORTATION (DOT) OK'D AIR OPERATIONS CERTIFICATE (AOC).
"ALLEGIANT" NAME CHOSEN BECAUSE DICTIONARY DEFINITION OF ALLEGIANCE, IS LOYALTY. THE SUNBURST LOGO SYMBOLIZES THE RELIABILITY OF EACH DAY'S SUNRISE. AIRPLANES FIRST CLASS SEATS ARE UPHOLSTERED IN LEATHER.
1 DC-9-21 (47361), EX-AIR TRANS (VAU), MJG LEASED.
JUNE 1999: OPERATES LAKE TAHOE - LAS VEGAS - BURBANK (DC-9-21).
DC-9-51 (47731) EX-(TWA), "C" MAINTENANCE CHECK BY AVTEL SERVICES, MOJAVE, CALIFORNIA. 2 ORDERS DC-9-51'S, EX-(TWA).
SEPTEMBER 1999: IN OCTOBER 1999, LONG BEACH - LAS VEGAS/SACRAMENTO. APPLIES FOR SCHEDULED SERVICES.
1 DC-9-51 (47746), EX-(TWA).
NOVEMBER 1999: CONTINUES ITS AD HOC, CASINO AND SPORTS TEAM CHARTERS, & OPERATES MORE CHARTERS FOR TOUR OPERATORS.
JANUARY 2000: DEPARTMENT OF TRANSPORTATION (DOT) OK'S SCHEDULED SERVICES.
TO LAS VEGAS, BURBANK, AND LONG BEACH.
+1 DC-9 NEXT MONTH.
JUNE 2000: IN JULY 2000, TO RENO - PORTLAND, OREGON (DC-9, DAILY).
JULY 2000: 1 DC-9-51 (47732), EX-(TWA), AVTEL SERVICES, CALIFORNIA, "D" CHECK, STRIP AND PAINT.
AUGUST 2000: LONG BEACH TO LAKE TAHOE.
1999 = -$3.88 MILLION (NET LOSS) (-$704,000): 738 MILLION (RPK) PASSENGER TRAFFIC (+14.3%); 53.2% LF LOAD FACTOR; 51,000 PASSENGERS (PAX) (+292.3%).
OCTOBER 2000: ABS PARTNERSHIP HUSHKIT FOR DC-9-51 (47732).
NOVEMBER 2000: LAS VEGAS TO RENO (DC-9).
DECEMBER 2000: FILES CHAPTER 11 BANKRUPTCY.
WILL CONTINUE TO OPERATE TO LAS VEGAS AND CHARTERS. FURLOUGHED 112 FULL AND PART-TIME EMPLOYEES AND RETAINS 51. FUEL COSTS HAD RISEN FROM 30% TO 40% OF OPERATING EXPENSES.
APRIL 2001: (http://www.allegiantair.com).
MAY 2001: WILL SELL 80% OF NEWLY ISSUED STOCK TO FORMER WESTAIR PRESIDENT, MAURICE GALLAGHER, AS PART OF COMPANY'S BANKRUPTCY REORGANIZATION.
JULY 2001: OPERATES BULLHEAD CITY - LAS VEGAS/ONTARIO/SAN JOSE FOR "AIR LAUGHLIN." IN SEPTEMBER 2001, TO SAN DIEGO.
JANUARY 2002: 2 MD-87'S, 130 ALL-LEATHER SEATS (JT8D-219), (49725; 78), EX-MIAMI AIR (MIB), FOR PAX CHARTERS, DFO PARTNERSHIP LEASED.
FEBRUARY 2002: TO LAS VEGAS - COLORADO SPRINGS (DC-9).
MARCH 2002: 2-YEAR DEAL WITH HARRAH'S HOTEL & CASINOS, TO PROVIDE MD-87 CHARTER FLIGHTS TO RENO FROM CITIES ACROSS THE USA.
May 2002: 3 DC-9-51's (47731; 47732; 47746) sold to Boeing Capital.
October 2002: MD-83 (49786, N860GA), Wells Fargo leased.
December 2002: In February 2002, Las Vegas - Wichita (4/week).
5 MD-80's bought from Scandinavian Airlines (SAS).
January 2003: 2 orders (February 2003) MD-83's (49557), ex-Scandinavian Airlines (SAS).
March 2003: Has Apple Vacations contract to operate Denver - Mexico charters (MD-80's), starting May 2003, Denver - Cancun, Puerto Vallarta, & Cozumel.
April 2003: In June 2003, Las Vegas - Des Moines, IA (MD-83, 4/week).
May 2003: Has extended its contract with Harrah's through 2005 for charters to Reno and Bullhead/Laughlin. With Apple Vacations, Denver - Puerto Vallarta, Cancun, & Cozumel (MD-83 162 PAX, 6/week).
2 MD-83's (49557, N861GA), ex-Scandinavian Airlines (SAS), Sigma Aircraft Management leased.
June 2003: Will move its HQ from Fresno to Las Vegas by September 2003. Its reservations office will remain in Fresno.
July 2003: Lansing, Michigan - Las Vegas (MD-83, 4/week).
MD-82 (49371, N33817), GECAS (GEF) leased.
September 2003: MD-82 (49423, N891GA), ex-(SAS).
October 2003: Las Vegas - Fort Collins (4/week).
November 2003: MD-82 (49911), ex-Scandinavian Airlines (SAS).
December 2003: Has Apples Vacations contract to operate charters from St Louis to Cancun, Cozumel, Puerto Vallarta, and Punta Cana. It currently operates Apple charters from Denver.
March 2004: Las Vegas - Peoria. In May 2004, Las Vegas to Sioux Falls (MD-83, 161Y, 2/week).
April 2004: 1st Quarter = 220.34 million (+326.2%); 77.6% LF load factor; 203,000 passengers (PAX) (+212.3%).
May 2004: Las Vegas - Bismark (2/week); - Sioux Falls (2/week). In June 2004, - Cedar Rapids (4/week). In August 2004, - Bellingham (4/week); - Redding (2/week).
July 2004: 2003 = +1.56 million (-1.98 million): 724 million (RPK) traffic (+221.8%); 74.4% LF load factor; 485,000 passengers (PAX) (+158%).
September 2004: MD-82 (49998, N805GA), bought from Scandinavian Airlines (SAS).
October 2004: MD-82 (49150, N491SH), bought from Investors Asset Holding.
December 2004: 185 employees.
In October 2005, Las Vegas - Madison (4/week).
M-83 (49554, LN-RMA), bought from Scandinavian Airlines (SAS).
January 2005: M-83 (49910), bought from Scandinavian Airlines (SAS).
April 2005: MD-83 (53296, N871GA), Scandinavian Airlines (SAS) leased.
May 2005: 500 employees.
June 2005: MD-83 (53295, N872GA), Scandinavian Airlines (SAS) wet-leased. MD-83 (49658), ex-AeroMexico (AMX), Finova Capital (GRB) leased.
September 2005: 2 MD-83's (53467, N877GA; 53469, N876GA), Boeing (TBC) leased.
October 2005: 1st 9 months = Passenger traffic 888.46 million (RPM) traffic (+35.6%); 826,000 passengers (+36.8%); 80.1% LF load factor.
Allegiant Air (WJE) will inaugurate nonstop service from Orlando to Allentown's Lehigh Valley Airport on December 16th. (WJE) will operate 4 flights a week, on Mondays, Thursdays, Fridays & Sundays, with an MD-80.
MD-83 (49998, N865GA), ex-(SAS), bought off lease. MD-83 (49463, N945AS), ex-Aeromexico (AMX), Finova Capital (GRB) leased.
November 2005: Allegiant Air (WJE) will inaugurate nonstop jet airplane service from Las Vegas to Palm Springs and operate 2 flights a week on Fridays and Sundays. (WJE) will inaugurate nonstop service from Las Vegas to Duluth on Jan 11th and operate 2 flights a week.
(WJE) will launch service between Allentown, Pennsylvania and Orlando Sanford on December 16 and between MidAmerica St Louis Airport and (SFB) on February 1.
MD-83 (53487, N878GA), Boeing Equipment Holding (TBC) leased.
December 2005: Allegiant Airlines (WJE) will inaugurate nonstop service from Las Vegas to Santa Maria, California on January 27th and operate 2 flights a week, on Fridays & Sundays, using an MD-80. On February 1, Las Vegas to Lincoln, Nebraska, using an MD-80. (WJE) inaugurated nonstop service from Orlando's Sanford Airport to Lehigh Valley's Airport last Friday and now operates 4 flights a week on this new route.
MD-87 (49779, N949MA), ex-Aeromexico (AMX), CIT Group (TCI) leased.
January 2006: Allegiant Airlines (WJE) will increase frequencies between Bellingham, Washington and Las Vegas from four flights weekly to six from April 5. (WJE) will inaugurate nonstop service from Las Vegas to Topeka Kansas on March 24th and operate 2 flights a week on Mondays & Fridays using an MD-80.
February 2006: Allegiant Air (WJE) will inaugurate nonstop service from Las Vegas to Killeen, Texas on April 5th and operate 2 flights a week, on Wednesdays & Saturdays, using an MD-80. (WJE) will inaugurate nonstop service from Orlando's Sanford Airport to Youngstown Ohio on May 19th and operate 2 flights a week, on Mondays & Fridays, with an MD-80. (WJE) launched 2X weekly service from MidAmerica St Louis Airport to Orlando Sanford.
March 2006: Allegiant Air (WJE) will operate seasonal summer service from Orlando to McAllen, Texas from June 7th through August 26th and operate 2 flights a week, on Wednesdays, & Saturdays, using an MD-80. (WJE) will increase the frequency on its Las Vegas to Wichita route from 5 to 6 flights a week for the summer season, from June 3rd through August 26th, and operate a Saturday flight . . this means the route will be serviced daily except Tuesdays. (WJE) will increase the frequency on its Las Vegas to Missoula route from 2 to 3 flights a week for the summer season from June 6th through August 15th, and operate a Tuesday flight . . this means the route will be serviced on Tuesdays, Thursdays, & Sundays.
April 2006: Allegiant Air (WJE) will launch twice-weekly Orlando Sanford - Roanoke service on May 24.
May 2006: Allegiant Travel Company, parent of Allegiant Air (WJE), filed a registration statement with the USA Securities & Exchange Commission for a proposed Initial Public Offering (IPO) of its common stock. (WJE), which provides both scheduled and charter services for leisure travelers, operates a fleet of 21 MD-80s and employs 670 people. The number of shares and price range have not been determined. According to analysts from Raymond James & Associates, (WJE)'s revenue for 2005 was $153 million, a +51% increase over the previous year.
2 MD-83's (49708; 49710), ex-Finnair (FIN), bought from Novus Aviation/Muzun, Switzerland.
June 2006: Allegiant Air (WJE) will inaugurate nonstop service from Las Vegas to Grand Junction on July 29th and operate 2 flights a week, on Wednesdays & Saturdays, using an MD-80.
MD-83 (49625, N880GA), bought from Finnair (FIN).
August 2006: Employees = 432.
September 2006: Allegiant Air (WJE) will reduce its operation from Orlando Sanford to Portsmouth, New Hampshire to 2 flights a week and make it a seasonal route operating from November through Spring.
(WJE) will inaugurate nonstop service from Orlando Sanford to Huntington, West Virginia on November 3rd and operate 2 flights a week, on Tuesdays & Fridays, using an MD-80. (WJE) will inaugurate nonstop service from Orlando to Chattanooga on October 31st and operate 4 flights a week, on Tuesdays, Thursdays, Saturdays, & Sundays, using an MD-80. (WJE) will inaugurate nonstop service from Orlando to Shreveport on November 15th and operate 2 flights a week, on Wednesdays & Saturdays, using an MD-80. (WJE) already operates twice a week service from Shreveport to Las Vegas. (WJE) discontinued service from Orlando to Worcester Missoura. (WJE) has announced service on a number of new routes as follows:
St Petersburg to Allentown Pennsylvania, starting November 16th, Tuesdays, Thursdays, Saturdays, & Sundays; St Petersburg to Hudson Valley New York, starting December 13th, Mondays, Wednesdays, & Fridays; St Petersburg to Lansing Michigan, starting December 14th, Mondays & Thursdays; St Petersburg to Peoria Illinois, starting
December 13th, Wednesdays & Saturdays; St Petersburg to Rockford Illinois, starting November 16th, Tuesdays, Thursdays, Saturdays, & Sundays; St Petersburg to South Bend Indiana, starting November 17th, Mondays & Fridays; St Petersburg to Springfield Missouri, starting December 13th, Wednesdays, & Sundays; St Petersburg to Toledo Ohio, starting December 12th, Tuesdays & Fridays.
(WJE) will inaugurate nonstop service from St Petersburg to Columbia South Carolina on December 14th and operate 3 flights a week, on Tuesdays, Thursdays, & Saturdays with MD-80s. (WJE) will inaugurate nonstop service from St Petersburg - Clearwater Airport to Roanoke on December 12th and operate 2 flights a week, on Tuesdays & Saturdays, using an MD-80.
October 2006: Allegiant Air (WJE) will inaugurate nonstop service from Orlando Sanford to Lehigh Valley International Airport on February 7th and operate a daily flight using an MD-80. (WJE) will increase the frequency on its Orlando to Stewart International Airport and operates 4 flights a week, on Mondays, Thursdays, Fridays, & Sundays. For the holidays, (WJE) will add flights on Tuesdays, Wednesdays, & Saturdays from December 14th through January 3rd, then on February 7th, the service will become daily.
2 MD-83's (48708, N881GA; 49710, N883GA), returned from FlyNordic (NOQ).
November 2006: The Allegiant Travel Company, parent of Allegiant Air (WJE), filed a registration statement with the USA Securities & Exchange Commission (SEC) in anticipation of an Initial Public Offering (IPO) of its common stock. The offer comprises 5 million shares of common stock listed on NASDAQ, or 5.75 million, if underwriters exercise over-allotment options. Merrill Lynch & Co will be sole book-runner, with Bear Stearns & Co and Raymond James as co-managers.
(WJE) will launch four-times-weekly on Mondays, Tuesday, Thursdays & Fridays, Knoxville, Tennesee - Las Vegas service, and twice-weekly on Mondays & Fridays Orlando Sanford - Fort Wayne, Indiana flights on February 15 aboard 150-seat MD-80s.
December 2006: The Allegiant Travel Company, parent of Allegiant Air (WJE), announced the closure of its Initial Public Offering (IPO) of 5 million shares of common stock with net proceeds of $94.8 million. The money will be used as working capital and to pay off company debt.
(WJE) announced it will discontinue service Orlando Sanford - Newburgh, New York's, Stewart Airport with the last service on January 11th and operates 4 flights a week to Orlando Sanford and was to inaugurate service to St Petersburg in January. Starting February 7th, Orlando Sanford - Lehigh Valey, 1/day; & - Newburgh, increased to 7/week; starting February 15th, Las Vegas - Knoxville, 4/week; & Orlando Sanford - Fort Wayne, 2/week; & starting February 16th, St Petersburg - Fort Wayne, 2/week; all flights using MD-80s.
The Allegiant Travel Company, parent of Allegiant Air (WJE), raised $90 million in gross proceeds through an Initial Public Offering (IPO) of 5 million shares of common stock priced at $18 per share. (WJE) granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover any over allotments. The stock will trade on the Nasdaq under the symbol ALGT. (WJE) has operated primarily in leisure markets, linking smaller cities with major tourist destinations such as Las Vegas, Orlando and Tampa/St Petersburg, using a fleet of 26 MD-80s of which 23 are in service. Proceeds from the offering will be used to retire debt, purchase new airplanes in line with the carrier's growth strategy and as working capital.
American Airlines (AAL) signed a four-year, $30 million deal with (WJE) for the provision in Tulsa of heavy Maintenance Repair & Overhaul (MRO), including "C" checks, on (WJE)'s 24 MD-80s. The deal leaves room for additional airplanes if (WJE) grows its fleet.
2 MD-82s (49931, N886GA, ex-(829NK); 49932, N887GA, ex-(N830NK)), Gustav Leasing leased.
January 2007: Starting February 6th, Tampa - Columbia discontinued. Starting February 13th, new 3/week, Tampa - Greenville/Spartanburg, using MD-80s. Starting March 2nd, new 2/week Las Vegas - Fort Wayne, using MD-80s. Starting March 9th, new 2/week Las Vegas - Great Falls, using MD-80s.
February 2007: Allegiant Air (WJE) parent, the Allegiant Travel Company reported a +19.9% rise in full-year net income to $8.7 million as the rapidly expanding company continued to build its leisure travel business. (WJE) increased its MD-80 fleet to 24 from 17 during 2006 and added 19 destinations, including a new base at St Petersburg-Clearwater and 29 new routes. Revenue soared +83.7% to $243.3 million against a +78.1% climb in expenses to $220.8 million, nearly tripling operating profit to +$22.6 million from the $8.5 million earned in 2005. A December, Initial Public Offering (IPO) netted proceeds of more than >$94 million.
(WJE) flew 560.7 million system wide (RPM)s passenger traffic in 2006, up +39.9% from the prior year. Capacity rose +41.8% to 734.8 million (ASM)s and load factor fell -1 point to 76.3% LF. Operating (RASM) was up +11.1% to 8.59 cents against a +3.4% climb in unit costs to 7.59 cents, or +12.1% to 4.34 cents, excluding fuel. Yield on scheduled services grew +7.2% to 9.09 cents.
The company's fourth-quarter net loss of -$1.5 million, widened from a -$404,000 deficit in the year-ago period. Taxes related to the (IPO) dragged it into the red, but its fourth-quarter operating profit more than tripled to +$7.4 million from +$2 million. For the first quarter of 2007, it is projecting revenues of $79.1 to $83.9 million and a 25% to 27% year-over-year increase in capacity.
March 2007: Starting May 17th, Orlando Sanford - Tri Cities, Tennesee. Starting May 22nd, Orlando - Wichita, and May 23rd, Tampa - Des Moines. Starting March 24th, Orlando Sanford - Greensboro; & St Petersburg - Greensboro.
Increased competition from low-cost carriers has resulted in a drop in the percentage of USA airports served exclusively by regional airlines, according to a new report from the Velocity Group. During the first quarter of 2007, regionals exclusively served 257 of the 434 airports that handle scheduled traffic in the lower 48 states, representing 59.2% of the airports receiving scheduled air service, a drop from 65.1% in the year-ago quarter. This represents the first decrease "in nearly two decades," Velocity said. "I expect this trend to continue," the company's Doug Abbey said. Main contributor to the drop was Allegiant Air (WJE), which has expanded into nearly 30 regional-only airports, demonstrating that "small communities support enough traffic, to justify larger jet flights into major O&D markets, rather than typical spoke-to-hub service patterns by smaller airplanes."
MD-82 (49145, N203AA), bought from Aircraft 49145 LLC.
August 2007: The Allegiant Travel Company, parent of Allegiant Air (WJE), reported second-quarter net income of +$10 million, more than double the +$4.7 million earned in the same period a year earlier. Revenue was up +49.1% to $88.9 million, while expenses increased +36.5% to $74.8 million. Operating income soared to +$14.2 million from +$4.9 million. "Our results in the second quarter continue to be in line with our expectations," CEO, Maurice Gallagher said. The carrier, which focuses on leisure and vacation travel, centered on Las Vegas and Orlando, boosted ancillary revenue from $14.63 to $20.94 per passenger, while fares remained level. "Given current high fuel prices and recent weaknesses in credit markets, we are pleased our balance sheet remains one of the best in the industry," he concluded.
The company leased two MD-80s during the quarter, one of which joined the fleet by June 30. The other entered service in July, bringing the MD-80 fleet to 29 compared to 21 at the end of the June 2006 quarter. It has committed to purchasing eight more for delivery through the 2008 first quarter.
(WJE) launched service to seven new cities and on 11 new routes during the second quarter. It flew 774.8 million system wide (RPM)s passenger traffic, up +37.6% from the year-ago period, on a +32% increase in capacity to 928.2 million (ASM)s. Load factor rose +3.4 points to 83.5% LF. Operating (RASM) was up +13% to 9.58 cents, while (CASM) increased +3.3% to 8.05 cents, or +5.5% to 4.24 cents excluding fuel. Yield on scheduled services climbed +4.3% to 9.26 cents, as average stage length dropped -8.3%. "In light of high fuel prices, we are more focused than ever on other costs," Gallagher said.
For the six-month period, the company reported net income of +$19.7 million, a +71% increase from +$11.5 million earned in the first half of 2006. Operating profit more than doubled to +$28.5 million from +$12.3 million. Looking ahead, it expects third-quarter year-over-year capacity growth of "at least" +29% and full-year growth of "at least" +30%. It expects to be operating 32 MD-80s by year end.
(WJE) will open bases at Mesa (Arizona) Williams Gateway and Fort Lauderdale (FLL) this fall. It will fly from Mesa to 13 destinations beginning October 12, and start serving 12 markets from (FLL) on November 14. Routes will be announced by the end of next month.
(WJE) announced the following new routes: Twice-weekly Peoria - Mesa, Arizona, from October 17; twice-weekly Peoria - Fort Lauderdale from December 13; twice-weekly Mesa - Santa Maria from October 26; twice-weekly Mesa - Sioux Falls from October 25; twice-weekly Mesa - Stockton from October 26, and twice-weekly Mesa - Cedar Rapids from October 25.
(WJE) predicts it will hire +52 pilots (FC) by the end of the year.
2 MD-82s (49660, N894GA; 49667, N895GA), bought from (GEF). MD-87 (48673, N673HC), bought from AeroUSA.
October 2007: Allegiant Air (WJE) parent, Allegiant Travel Company promoted Managing Director Planning, Andrew Levy to CFO. Scott Sheldon was named Principal Accounting Officer.
MD-83 (49401, N884GA), bought from (SAS).
November 2007: The Allegiant Travel Company, parent of Allegiant Air (WJE), reported +$7 million in net income for the third quarter, a significant improvement over a -$1.2 million loss, during the same period a year ago. Operating revenue was up +41.7% to $86.3 million, while operating income more than tripled to +$9.5 million from +$2.9 million. Expenses rose +32.3% to $76.7 million. "Our results in the third quarter, historically our weakest, remain in line with our expectations," CEO & Chairman, Maurice Gallagher Jr said. "We more than doubled our operating margin to 11%, despite substantial growth." The carrier, which focuses on service to leisure destinations, said a +18.5% increase in ancillary revenue to $21.3 million, was the largest contributor to the improved margin. (WJE) unbundles airfares, charging passengers extra for such things as checked baggage and onboard service items. It also markets hotel rooms, car rentals and other travel-related services on its website. Capacity was up +31% to 912.5 million (ASM)s, while (RPM)s increased +41% to 767.9 million. Load factor was 84% LF, up +6 points. The airline added three MD-80s during the quarter, bringing its fleet to 29 airplanes, and has a commitment to purchase four more of the type in the first quarter. Nine-month income grew to +$26.7 million from +$10.3 million in the year-ago period, as operating profit more than doubled to +$38 million from +$15.2 million.
First 6 months = 2.43 billion (RPK)s (+32.51%); (+29.5%) (ASK)s; 84.2% LF (+1.9%); 1.56 million passengers (+47.54%).
MD-88 (49761, N158PL), bought from Polaris.
December 2007: Allegiant Airlines (WJE) flew 274.5 million (RPM)s passenger traffic in November, up +64.5% from the year-ago month. Capacity rose +62.3% to 348.1 million (ASM)s, and load factor increased +1.1 points to 78.9% LF.
(WJE) is accepting resumes and actively hiring 16 pilots (FC) per month. (WJE) opened a new pilot (FC) base in Mesa, Arizona in October and opened another pilot (FC) base in Fort Lauderdale, Florida in November. Intends to open another pilot (FC) base in Tunica, Minnesota in January.
MD-88 (49763, N160PL), bought from Polaris.
January 2008: Allegiant Air (WJE) flew 321.1 million (RPM)s passenger traffic in December, a +55% increase from the year-ago month. Capacity climbed +51.6% to 413 million (ASM)s, and load factor rose +1.7 points to 77.7% LF.
2007 statistics: 5.05 billion (RPK)s passenger traffic +39.5%; +34.6% capacity (ASK)s; +2.9 load factor for 81.3% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "WJE-2007-STATS" & (DOT) FIGURES - - "WJE-2007-STATS-A."
(WJE) will launch twice-weekly, Orlando Sanford - Plattsburgh flights, and expand its twice-weekly, Plattsburgh - Fort Lauderdale service to four-times-weekly on February 1.
(WJE) parent, the Allegiant Travel Company appears to have found the right formula in the congested USA market, as efforts to develop ancillary revenue streams, and expansion into high-demand leisure markets, helped produce a +$31.5 million full-year profit, more than triple the +$8.7 million earned in 2006. "We have previously demonstrated the ability, over time, to improve margins in the face of substantial fuel price increases, and we fully expect to do so this time as well. We remain confident in our business model, its profitability potential and our ability to execute," Chairman, President & CEO, Maurice Gallagher Jr said. Full-year operating revenue soared +48.2% to $360.6 million as (WJE) added service to Phoenix, Mesa and Fort Lauderdale, and increased its MD-80 fleet to 32 airplanes from 24. Ancillary revenue per passenger rose +33.6% year-over-year to $21.53. Expenses climbed +43.4% to $316.5 million, and operating profit nearly doubled to +$44.1 million from +$22.6 million. Traffic jumped +39.5% to 3.14 billion (RPM)s against a +34.6% capacity increase in (ASM)s to 3.87 billion, lifting load factor +2.9 points to 81.3% LF. Unit revenue was up +10% to 9.33 cents, with (CASM) rising +6.5% to 8.19 cents.
A fourth-quarter profit of +$4.8 million represented a reversal from a -$1.5 million loss in the year-ago period, with special items driving the improvement. Operating income fell -17.8% to +$6.1 million.
The company announced a program to repurchase $25 million in common stock. It said it expects to be operating 40 airplanes by year end (it has added three this month) and will boost full-year capacity by at least +30%. It also said it will base two MD-80s at Bellingham, Washington, from March 1. It operates 14 weekly departures from the airport to four destinations. It will employ 80 people there.
February 2008: Allegiant Air (WJE) flew 304.3 million (RPM)s passenger traffic in January, a +47.1% increase over the year-ago month. Capacity rose +40.3% to 383.7 million (ASM)s and load factor was up +3.6 points to 79.3% LF.
March 2008: Allegiant Air flew 330.4 million (RPM)s passenger traffic in February, up +44.1% from the year-ago month. Capacity rose +36.9% to 394 million (ASM)s and load factor increased +4.2 points to 83.9% LF.
April 2008: Allegiant Air (WJE) flew 427.7 million system (RPM)s passenger traffic in March, a +36.6% increase over the year-ago month. Capacity climbed +32.7% to 492.6 million (ASM)s, and load factor rose +2.5 points to 86.8% LF.
(WJE) parent, the Allegiant Travel Company bucked the first-quarter trend with a performance that Chairman, President & CEO, Maurice Gallagher Jr called "exceptional," posting a +$9.7 million profit that slipped just -0.8% from a nearly identical figure posted the prior year. He said (WJE)'s focus on generating higher load factors, ancillary revenue and a more even spread of departures throughout its network, were key drivers of the result. The company is not immune to the worsening environment, however, and CFO & Managing Director Planning, Andrew Levy said, "our performance in the second quarter of this year will not match . . . last year" if record fuel prices continue. "We believe we can remain profitable," he added. Operating revenue soared +57.8% to $133.1 million, driven by a +112.6% rise in ancillary revenue to $27.1 million ($7 per passenger). Expenses were up +69.6% to $118.8 million and operating income rose +0.4% to $14.4 million. (WJE) operated 36 MD-80s - - it added four during the quarter - - on 103 routes, flying 1.06 billion system (RPM)s passenger traffic, up +41.8%. Capacity grew +36.2% to 1.27 billion (ASM)s and load factor improved +3.3 points to 83.6% LF. The scheduled network enjoyed loads of 86.9% LF. System (RASM) rose +15.8% to 10.48 cents, against a +24.5% increase in (CASM) to 9.35 cents. The latter was up +4.3% to 4.35 cents, excluding fuel.
(WJE) parent, the Allegiant Travel Company announced the purchase from Finnair (FIN) of six MD-80s and three spare engines, that currently are on lease to FlyNordic (NOQ), which was sold by (FIN) to Norwegian (NWG) last year. "Our strong financial condition permits us to purchase airplanes for cash," (WJE) Chairman & CEO, Maurice Gallagher Jr said. (WJE) claimed to be one of only two in the USA to carry more cash than debt as of December 31.
Four of the airplanes will enter service for (WJE) in the first half of 2009 and the remaining two in the first quarter of 2010. It expects to receive around $5.5 million in lease revenue from the planes, while they continue to operate for (NOQ), but expects to incur a similar amount in maintenance obligations. (FIN) said the transaction would not have any significant impact on its financial performance.
(WJE) currently flies 36 MD-80s.
MD-82 (49145), sold to Universal Asset Management. MD-82 (49371), WFU at Goodyear. MD-88 (49765, N162PL), bought from Polaris.
May 2008: Allegiant Air (WJE) flew 298.4 million (RPM)s passenger traffic in April, a +28.6% increase over the year-ago month. Capacity rose +20.6% to 340.9 million, raising load factor +5.4 points to 87.5% LF.
(WJE) operates scheduled services as well as charter flights. It has a significant base of operation at Orlando's Sanford Airport (SFB).
Employees = 841.
(IATA) Code: G4. (ICAO) Code: AAY - ALLEGIANT.
Parent organization/shareholders: Allegiant Travel Company (100%).
Main Base: Orlando Sanford International Airport (SFB).
Domestic, scheduled destinations: Allentown; Belleville; Bellingham; Bismark; Boston; Cedar Rapids; Chicago; Colorado Springs; Des Moines; Duluth; Fargo; Fort Collins/Loveland; Fresno; Green Bay; Idaho Falls; Lansing; Las Vegas; McAllen; Missoula; Newburgh; Oklahoma City; Orlando; Palm Springs; Pasco; Peoria; Rapid City; Sioux Falls; South Bend; Springfield; Toledo; Wichita; & Worcester.
(WJE) launched twice-weekly, Wilmington, North Carolina - Orlando Sanford. (WJE) ended its scheduled service between Wichita, Kansas and Orlando, Florida.
(WJE) expects to interview for Flight Crew (FC) again in late summer. (WJE) will be recruiting pilots (FC) at the FLTops.com "Pilot (FC) Job Fair" in Las Vegas on May 16, 2008.
June 2008: Allegiant Air (WJE) flew 307.7 million (RPM)s traffic in May, a +44.1% increase over the year-ago month. Capacity climbed +34.8% to 342.1 million (ASM)s and load factor was up +5.8 points to 89.9% LF.
(WJE) expects to interview for Flight Crew (FC) positions again in late summer for a fall class.
July 2008: Rising load factor and ancillary revenue, in addition to capacity cuts by competitors, helped Allegiant Air (WJE) parent Allegiant Travel Company to a +$2.6 million second-quarter profit that was a steep drop from the +$10 million earned in the year-ago quarter, but left it as "yet again one of the few companies in our space who are profitable," according to Chairman, President & CEO, Maurice Gallagher Jr. "Once again, the main story for the quarter is the rapid and significant rise in fuel prices and our ability to continue to produce profits," CFO & Managing Director Planning, Andrew Levy said. Key was a +47.9% year-over-year increase in revenue to $131.6 million, a +5.5-point rise in scheduled load factor to 90.5% LF and a +32.5% surge in ancillary revenue per passenger to $27.75. In addition, Gallagher said (WJE) benefitted from "widely publicized capacity reductions in our destination markets, some as high as -15%."
Second-quarter expenses soared +69.7% to $126.9 million, lowering operating profit -67% to $4.7 million from $14.2 million in the year-ago period. The carrier flew 1.04 billion system (RPM)s traffic, up +33.9%, against a +27% increase in (ASM)s to 1.18 billion. System load factor rose +4.5 points to 88% LF. Operating (RASM) was ahead +16.5% to 11.16 cents, while (CASM) rose +33.7% to 10.76 cents, or by +9.7% to 4.65 cents, excluding fuel.
(WJE) launched five new routes during the period and added one airplane, lifting its fleet to 37 MD-80s. It expects to grow capacity by +2% year-over-year in the current quarter.
Half-year net earnings of +$12.3 million represented a -37.5% decline from the +$19.7 million reported in the year-ago semester. Operating profit dropped -33.1% to +$19 million.
September 2008: Allegiant Air (WJE) is interviewing Flight Crew (FC) to fill classes in October. (WJE) is interviewing from resumes on file and is not currently accepting new resumes.
October 2008: Allegiant Air (WJE) flew 200.1 million (RPM)s traffic in September, up +1.7% from the year-ago month. Capacity fell -11.2% to 228.3 million (ASM)s, and load factor rose +11.1 points to 87.6% LF.
(WJE) parent, the Allegiant Travel Company reported a +$4.9 million third-quarter profit, down -30.3% from $7 million in earnings during the year-ago period, citing "aggressive capacity management" as the principal reason for its continued profitability. "The steps we have taken to adapt to record high fuel prices, namely reducing our long-haul flying, trimming capacity in select markets and focusing on increased load factors, are clearly paying off," President & CEO, Maurice Gallagher said.
Operating revenue rose +35.4% year-over-year to $116.9 million against a +41.7% lift in costs to $108.8 million. Operating income slipped -14.9% to +$8.1 million from +$9.5 million in the third quarter of 2007. (WJE) flew 858.1 million (RPM)s traffic, up +11.7%, while capacity rose just +3.7% to 946.4 million (ASM)s. Its load factor was up +6.5 points to 90.7% LF. Operating (RASM) climbed +30.5% to 12.35 cents, and unit cost increased +36.6% to 11.49 cents. Average fare rose +3.6% to $86. (WJE) operated 37 MD-80s at quarter's close, up from 29 the year before. It will take one more before year end, but expects a -3% fourth quarter capacity decline and a +7% year-over-year increase in the 2009 first quarter.
November 2008: Allegiant Air (WJE) flew 248 million (RPM)s traffic in October, up +8.6% year-over-year. Capacity fell -2.4% to 284.1 million (ASM)s, lifting load factor +8.9 points to 87.3% LF.
1st 6 months = 2.76 billion (RPK)s traffic (+38.75%); +32.33% (ASK)s capacity, 87.3% LF (+4); 1.88 million passengers (+48.81%).
(AAR) (ALC) was selected by (WJE) to perform maintenance and modification services on six MD-80s on a nose-to-tail basis at (AAR) Aircraft Services (ALC), Oklahoma. The work on the first airplane began last month.
MD-82 (53246, N408NV), returned from Norwegian (NOQ).
December 2008: Allegiant Air (WJE) flew 302.8 million (RPM)s traffic in November, a +1.1% rise from the year-ago month. Capacity fell -10.3% to 348.1 million (ASM)s, lifting load factor +9.8 points to 87% LF.
2 MD-83's (49623, N405NV; 49900), bought from Norwegian.SE (NOQ).
January 2009: Allegiant Air (WJE) flew 342.6 million (RPM)s traffic in December, up +9.6% year-over-year. Capacity fell -2.6% to 386.1 million (ASM)s and load factor rose +9.8 points to 88.7% LF.
Allegiant Air (WJE) will launch flights from Grand Rapids to Orlando Sanford (thrice-weekly on February 3) and St Petersburg - Clearwater (four-times-weekly on February 4) aboard MD-80s. It no longer will serve Lansing.
MD-82 (53245, N411NV), bought from Aerco Ltd.
February 2009: Allegiant Air (WJE) flew 320.6 million system (RPM)s traffic in January, up +5.4% year-over-year. Capacity fell -2.6% to 373.6 million (ASM)s and load factor rose +6.5 points to 85.8% LF.
(WJE) launched twice-weekly, Oakland - Bellingham, Washington service (increasing to thrice-weekly by May and five-times-weekly by June) aboard an MD-80.
(WJE), as a leisure carrier that touts its service "to/from America's favorite small cities," will open its sixth base on May 1, when it launches operations at Los Angeles (LAX) with flights to 12 destinations. (WJE) will base two 150-seat MD-80s at (LAX) and fly to Bellingham (from May 2), Billings (May 22), Des Moines (May 24), Fargo (May 23), Grand Junction, Colorado (May 1), McAllen, Texas (May 24), Medford, Oregon (May 1), Missoula (May 2), Monterey, California (May 3), Sioux Falls (May 23), Springfield, Mo (May 3), and Wichita (May 23). (WJE) also operates bases at its Las Vegas hub, Mesa, Orlando Sanford, St Petersburg and Fort Lauderdale and, including (LAX), will serve 70 USA cities on scheduled flights.
2 MD-81s (48029; 48031), bought from Arlington Aviation and parted out. MD-87 (49413), bought from Pegasus (PSS) for parts. 2 MD-88s (49759; 49766), (GECAS) (GEF) leased.
March 2009: Allegiant Air (WJE) flew 351.2 million (RPM)s traffic in February, a +6.3% increase over the year-ago month. Capacity rose +1.9% to 401.6 million (ASM)s and load factor climbed +3.5 points to 87.4% LF.
(WJE) says its home base, Las Vegas is “doing fine;” hotel room prices are down -40%.
MD-87 (49413, N399NV), Pegasus (PSS) leased, ex-(XA-TXH).
April 2009: Allegiant Air (WJE) flew 468.5 million (RPM)s traffic in March, up +19.1% year-over-year. Capacity rose +17.3% to 507.9 million (ASM)s and load factor lifted +1.5 points to 92.3% LF.
(WJE) parent, Allegiant Travel Company reported first-quarter net income of +$28.3 million, nearly three times the +$9.7 million earned in the year-ago period, citing rising load factors and an increase in ancillary revenue. "We held our own in a challenging revenue environment, more than offsetting fare weakness with increased load factors," CFO & Managing Director Planning, Andrew Levy said. "At the right price we continue to find strong demand for our product." A +52.2% jump in ancillary revenue to $41.3 million was particularly notable.
Overall revenue rose +6.7% to $142.1 million, while expenses lowered -17.8% to $97.6 million, helped by a -47.4% drop in fuel costs to $33.3 million. Operating income was +$44.5 million, more than triple operating income of +$14.4 million last year. (WJE)'s traffic heightened +9.8% to 1.17 billion (RPM)s on a +4.9% lift in capacity to 1.33 billion (ASM)s, leading to a load factor of 87.6% LF, up +4 points. Operating (RASM) increased +1.8% to 10.67 cents, while (CASM) fell -21.6% to 7.33 cents. (CASM) ex-fuel, rose +10.8% to 4.48 cents. Scheduled services yield slipped -13.3% to 8.18 cents.
(WJE) operated 41 MD-80s as of March 31 and has acquired an additional five of the type that it has not yet placed in service, including three that have been leased to a third party. While it did not provide specific revenue and earnings guidance for the remainder of 2009, Levy predicted an "exceptional" performance "should fuel prices remain at current levels."
(WJE) said it will end Wilmington, North Carolina - Tampa service on May 17 and Bellingham - Reno service on May 29 "due to lack of market demand." It will launch twice-weekly, Columbia - Fort Lauderdale flights on May 27. (WJE) will launch twice-weekly, Oakland - Eugene service on June 8.
2 MD-87s (49405, N205AM; 49585, N214AM), bought from Pegasus (PSS) for parts.
May 2009: Allegiant Air (WJE) flew 422.1 million (RPM)s traffic in April, up +29.4% year-over-year, against a +25.7% climb in capacity to 481.3 million (ASM)s. Load factor was up +2.5 points to 87.7% LF.
(WJE) parent, Allegiant Travel Company announced that PAR Investment Partners, its second-largest shareholder, is offering 2.25 million shares for sale, leaving it with more than >1.9 million following the transaction. Chairman, President & CEO, Maurice Gallagher is the largest shareholder.
June 2009: Allegiant Air (WJE) flew 381.1 million (RPM)s traffic in May, up +23.9% from the year-ago month. Capacity rose +22.9% to 420.5 million (ASM)s and load factor increased +0.7 point to 90.6% LF.
FltOps.com, an assistance service for professional pilots (FC), recently released a report of what each major USA carrier pays its captains and first officers. For the eleven largest USA airlines, including freight carriers FedEx (FED) and (UPS), the average annual pay for a first-year first officer flying the smallest mainline airplane is about $36,000. But the range between the best and worst paying airlines is large, with (FED) paying $51,000 and US Airways (AMW)/(USA) just $22,000. Southwest Airlines (SWA) is the second highest paying at the entry level ($50,000), while Continental Airlines (CAL) and United Airlines (UAL) are tied for second last at $27,000. At the other end of the scale are long tenured captains flying the largest airplanes, who earn an average of $165,000 per year. Again, the cargo carriers are tops with (UPS) and (FED) paying $231,000 and $211,000, respectively. The best paying passenger airline is (SWA) ($181,000), quite remarkable considering its pilots (FC) only fly narrow body 737s. The worst is JetBlue (JBL) ($123,000). Flt.Ops.com notes that pilots (FC) can earn considerably more than their base pay through international overrides, overtime work, per diems and other items.
Recently released federal government employment figures for airline pilots (FC) and mechanics (MT) run counter to data compiled by private organizations and the personal stories of highly-trained pilots (FC) standing in unemployment lines. FltOps.com recently held a pilot (FC) recruiting conference in Dallas-Fort Worth in which only a handful of airlines were on hand to interview pilots (FC). Last year’s event drew 35 airlines, spelling out how drastic the drop in pilot (FC) hiring has been, as air carriers quit hiring and in many case furlough pilots (FC). FltOps.com says the 15 largest USA airlines it tracks hired 2,300 pilots (FC) in 2006 and 2,440 in 2007. But last year, only 1,300 pilots (FC) found jobs. Through the first four months of 2009, only 28 new pilots (FC) joined the 15 air carriers. FltOps.com’s figures jive with that of AIR Inc, the aviation career information service, that for two decades served as a reservoir of data on pilot (FC) hirings. But if anyone needed more evidence of the worsening condition of the airline industry, Air Inc in February this year, shuttered its operation as a result of the sorry state of the economy worldwide, which has produced a dearth of new commercial pilot (FC) jobs as legacy airlines shed capacity, implementing pilot (FC) furloughs and layoffs while also putting off new flight deck crew (FC) hiring.
By the end of 2008, as the recession deepened, it became clear that the future would be bleak for newly minted flight school graduates. Air Inc said airline pilot (FC) hiring totals for 2008 were less than half of what they were the previous year, 6,479 compared to 13,157 in 2007.
However, the federal government says USA scheduled passenger airlines employed +2.3% more pilots (FC) and +5.9% more maintenance (MT) workers in 2008 than in 2007, while total industry jobs declined by -3.0%. According to the USA Department of Transportation (DOT)’s Bureau of Transportation Statistics (BTS), the seven large network carriers employed +1.1% more pilots (FC) and +8.6% more maintenance (MT) workers in 2008 than in 2007. The seven largest low-cost carriers (LCC)s employed +5.2% more pilots (FC) and -6.8% fewer maintenance (MT) workers from 2007 to 2008.
Delta Air Lines (DAL) had the largest increase in pilots (FC) of any network airline from 2007 to 2008,K while Alaska Airlines (ASA) had the greatest percentage decrease in pilot (FC) employment of the network airlines. United Airlines (UAL) had the largest increase in maintenance workers of any network airline from 2007 to 2008, while Northwest Airlines (NWA) had the smallest increase.
All of the low-cost carriers (LCC)s except Frontier Airlines (FRO) added pilots (FC) from 2007 to 2008. Spirit Airlines (SPR) had the largest increase in pilot (FC) employment followed by Allegiant Airlines (WJE). (WJE) had the largest increase in maintenance (MT) workers of any low-cost airline from 2007 to 2008, while (SPR) had the largest reduction. The seven network carriers employed 13.2 pilots per airplane in 2008, down from 13.5 pilots (FC) per airplane in 2007. The (LCC)s employed 11.2 pilots (FC) per airplane in 2008, down -1.8% from 11.4 pilots (FC) per airplane in 2007.
Alaska Airlines (ASA) had 12.0 pilots (FC) per airplane in 2008, down from 12.9 (FC) per airplane in 2007, the fewest of any network airline. Delta (DAL), with 14.9 per airplane, up from 14.3 per airplane in 2008, had the largest increase in the number of pilots (FC) per airplane from 2007 to 2008 and had the most pilots (FC) per airplane of any network carrier.
Allegiant (WJE) had 9.3 pilots (FC) per airplane in 2008, the fewest of any (LCC), compared to 9.6 pilots (FC) per airplane in 2007. Spirit (SPR), with 15.5 (FC) per airplane, up from 12.6 (FC) per airplane in 2007 had the most pilots (FC) per airplane in the (LCC)s group.
As regards airline mechanics (MT), the (BTS) said the passenger airlines had 8.9 maintenance (MT) workers per airplane in 2008, up from 8.3 per airplane in 2007. The network airlines had 12.9 maintenance (MT) workers per airplane in 2008, up from 12.3 (MT) per airplane in 2007. Spending by network airlines for outsourced maintenance increased from 42.5% of total maintenance spending in 2007 to 42.8% in 2008. The (LCC)s had 3.2 maintenance (MT) workers per airplane in 2008, down from 3.7 (MT) per airplane in 2007. Spending by (LCC)s for outsourced maintenance increased from 52.1% of total maintenance spending in 2007 to 54.6% in 2007.
(NWA) had 0.8 maintenance (MT) workers per airplane in 2008, the fewest of any network airline and unchanged from the 0.8 employees per airplane in 2007. (NWA)’s spending for outsourcing maintenance declined from 71.0% of total spending in 2007 to 65.9% in 2008. American Airlines (AAL) had 22.4 maintenance (MT) workers per airplane in 2008, the most of any network airline. (AAL)’s spending for outsourcing was 23.6% of total maintenance spending in 2008, the lowest percentage spending share of the network carriers.
Virgin America (VUS) had 1.7 maintenance (MT) workers per airplane in 2008 the fewest of any (LCC). Of the (LCC)s, Spirit (SPR) spent the smallest portion of its maintenance expense on outsourcing at 22.6%. Southwest (SWA) had the highest percentage share for outsourcing at 61.3%. Frontier (FRO) had 3.9 maintenance (MT) workers per airplane in 2008, the most of any (LCC) but down from 7.7 (MT) employees per airplane in 2007. (FRO)’s spending for outsourcing increased from 20.5% of total maintenance spending in 2007 to 24.9% in 2008.
In the news, Alaska Airlines (ASA) and its mechanics (MT) union produced a tentative agreement on a two-year contract extension, through October 17, 2011. The Aircraft Mechanics Fraternal Association (AMFA) represents 655 airline technicians (MT). (ASA) and the union announced that they expect the results of the ratification vote by late July. (AMFA) is the largest craft union representing airplane maintenance technicians (MT) and related employees and serves members at (ASA), Mesaba Airlines and (SWA).
But (SWA) pilots (FC) rejected a tentative five-year contract that would have increased their salaries and retirement benefits. Work to reopen contract talks with (SWA) will begin immediately, said Carl Kuwitzky, President of the (SWA) Pilots’ Association. Almost 51% of pilots (FC) voted against the agreement, which was reached in January after >2 years of talks. In the interim, the existing contract remains in effect. >95% of pilots (FC) voted. "We are naturally disappointed and acknowledge it was a very close vote," said Chuck Magill, VP Flight Operations for (SWA). "We reached a tentative agreement in good faith, and both sides put a lot of effort into getting to this point. We have an outstanding and highly productive group of Pilots (FC), and we appreciate their active involvement in the voting process. We welcome the opportunity for our negotiating teams to re-engage and work toward an agreement that best meets the needs of our company and our outstanding pilots during these challenging economic times."
Meanwhile, it is reported that the skies aren’t so friendly for Steffan Schmidt and Chris Campbell. They were recently found on a street in Seattle, at rush hour, holding signs more often used by panhandlers. “Two laid-off pilots (FC)” read Schmidt's sign. “Will Fly for Food” Campbell’s sign said. It’s a small industry, and there aren’t a lot of pilot (FC) gigs on Craigslist or Monster, said Campbell, who lost his job flying a corporate airplane. Schmidt was laid off from his job flying a corporate plane three months ago, and figured they would get some “exposure” by standing at a busy freeway ramp. “The normal way to find employment didn’t cut it,” he said. Schmidt said he wanted to get off unemployment, and not “waste any more tax dollars.” They're seeking pilot (FC) jobs, not handouts, but passersby offered them money and books, which they politely declined.
July 2009: Allegiant Air (WJE) flew 468.8 million system (RPM)s traffic in June, up +25.6% year-over-year. Capacity rose +29% to 527.3 million (ASM)s and load factor dropped -2.4 points to 88.9% LF.
(WJE) parent, Allegiant Travel Company continued to defy the shrinking economy during the second quarter, launching 20 new routes and posting a net profit of +$23.9 million that compared to earnings of just +$2.6 million in the corresponding 2008 period. "During the quarter, we substantially increased the size of our nationwide footprint," President & CEO, Maurice Gallagher Jr said. "This further diversifies our exposure to regional economies and offers more protection to us in these uncertain times." (WJE) opened a base at Los Angeles in May.
(WJE) finished the quarter with 43 MD-80s in service, up from 37 the previous year. Second-quarter revenue rose +12.5% to $148 million against a -13.1% decrease in expenses to $110.2 million, resulting in a surge in operating profit to +$37.9 million from +$4.7 million in the year-ago period.
"We saw a steady degradation of the revenue environment . . . April through June. However, we are hopeful June may mark the bottom of revenue softness. Fares for July, including ancillary, are . . . trending slightly upwards" despite a capacity increase, Gallagher said.
(WJE) flew 1.3 billion system (RPK)s, up +25%, while capacity rose +24.7% to 1.47 billion (ASK)s. Load factor inched up +0.2 point to 88.2% LF. Operating (RASM) fell -9.8% to 10.07 cents against a -30.3% plunge in unit cost to 7.5 cents. (CASM) excluding fuel, was level at 4.65 cents. Its averaged scheduled fare dropped -22% to $65.16, but average ancillary revenue was up +16.6% to $32.36. (WJE) has no fuel hedges.
Six-month net profit of +$52 million compared to +$12.3 million in net earnings during the year-ago semester. Operating income rose more than fourfold to +$82.3 million from $19 million.
(WJE) expects third-quarter capacity growth of approximately +35% and a fourth-quarter increase of around +20%, resulting in a full-year (ASM) increase of some +20%.
MD-81 (53300), bought from (JAL) for parts.
August 2009: Allegiant Air (WJE) flew 471.6 million (RPK)s traffic in July, up +32.2% year-over-year, against a +39.5% rise in capacity to 537.5 million (ASK)s. Load factor fell -4.9 points to 87.7% LF.
(WJE) said it expects third-quarter capacity (ASM)s to increase approximately +40% year-over-year on a +35% lift in departures and fourth-quarter capacity to rise some +18% on a +12% increase in departures.
(WJE) said it has given 120-day notice of its intention to cancel its Cuban charter service, which, although profitable, is "exposing the airline . . . to operational complexity inconsistent with our operating philosophy," according to CEO, Maurice Gallagher Jr.
(WJE) also announced the resignation of Managing Director Sales & Marketing, M Ponder Harrison, who will remain with the company "in a strategic advisory capacity."
September 2009: Allegiant Air (WJE) flew 383.3 million (RPM)s traffic in August, up +45.8% year-over-year, while capacity climbed +50.9% to 425.2 million (ASM)s. Load factor slipped -3.2 points to 90.2% LF.
(WJE) will launch twice-weekly, Bangor - Tampa (November 20), Grand Rapids - Fort Lauderdale (November 13), Grand Forks - Phoenix Mesa (November 13) and Duluth - Orlando Sanford (November 20) aboard MD-80s.
MD-81 (49461, N502PT), bought for parts. MD-83 (49574), bought from Norwegian.SE (NOQ), ex-(SE-RDV).
October 2009: Allegiant Air (WJE) flew 264.7 million scheduled (RPM)s traffic in September, a +59.6% increase year-over-year. Capacity rose +63.2% to 294.7 million (ASM)s and load factor fell -2 points to 89.8% LF.
(WJE) parent, the Allegiant Travel Company concluded the third quarter, which it described as "our historically weakest," with a +$13.8 million profit that represented a nearly threefold gain over the +$4.9 million surplus reported in the year-ago period. "In the third quarter of 2008, we squeezed capacity hard to compensate for extraordinarily high fuel prices. This year, we returned to more normal third-quarter aircraft utilization, which, in combination with a seven-airplane increase in our fleet, resulted in high year-over-year growth against a backdrop of continued industry capacity cuts," Chairman & CEO, Maurice Gallagher Jr said. "Notwithstanding our somewhat dramatic snapback of capacity, our unit revenue declines were largely in line with the industry and we produced a record third-quarter 16% operating margin."
(WJE)'s operating revenue rose +13.9% to $133.1 million, while expenses increased just +2.2% to $111.2 million. Operating profit surged +170.3% to +$21.9 million from +$8.1 million in the third quarter of 2008.
Its average fare dropped -22.3% to $67.09 but ancillary revenue rose +3.3% to an average $33.35 per person. It operated 44 MD-80s at the conclusion of the quarter (40 owned), compared to 37 one year ago. It has two more ready to enter service in the current quarter as it launches nine new routes.
(WJE) flew 1.17 billion (RPM)s traffic during the period, up +36.8%, against a +42.7% lift in capacity to 1.35 billion (ASM)s that cut load factor -3.8 points to 86.9% LF. Operating (RASM) dropped -20.2% to 9.86 cents and unit cost fell -28.4% to 8.23 cents, or by -9.1% to 4.99 cents, excluding fuel.
"We are cautiously optimistic that better times are in the offing. Scheduled fares, both airfare and ancillary per passenger, bounced off their lows of the second quarter," Gallagher said. "It's a little early to declare victory, but we certainly like the trend."
(WJE) anticipates fourth-quarter (ASM) growth of some +23% and a full-year capacity increase of +22%. It is targeting a fleet of 52 airplanes by the close of 2010.
(WJE) will launch twice-weekly service between Wichita and Phoenix Mesa November 20 aboard a 150-seat MD-80.
MD-83 (49965), bought from (0NOQ), ex-(SE-DLV).
November 2009: Allegiant Air (WJE) flew 325.1 million system (RPM)s traffic in October, up +31.1% year-over-year, against a +34.2% lift in capacity to 381.2 million (ASM)s. Load factor dropped -2 points to 85.3% LF.
December 2009: Allegiant Air (WJE) flew 350.5 million (RPM)s traffic in November, up +25.3% from the year-ago month. Capacity rose +24.6% to 387.9 million (ASM)s and load factor increased +0.6 point to 90.4% LF.
(WJE) will transfer part of its Orlando operation from Sanford to Orlando International (MCO) on February 1, a move (WJE) said will appeal to passengers who want easier access to the city's tourist attractions while "improv[ing] our position relative to competitors with service to [MCO]." (WJE) currently flies to 31 destinations from Orlando. In February, it will begin flying from (MCO) to Knoxville, Lexington, (both from February 1), Allentown, Greenville-Spartanburg (both February 8), Grand Rapids (February 12), Springfield, Missouri, Tri-Cities, Tennessee (both February 15), Huntington (February 16), Youngstown (March 4) and Des Moines (March 5). By the first week of March, it will base five MD-80s at (MCO), which will become its eighth base.
January 2010: Allegiant Air (WJE) flew 406.2 million (RPM)s traffic in December, up +18.6% year-over-year. Capacity rose +16.1% to 448.4 million (ASM)s and load factor increased +1.9 points to 90.6% LF.
In the first nine months of 2009, Allegiant (WJE)'s passenger boardings climbed +28.3% to 3.8 million, while (RPM)s were up +28.9% to 3.42 billion and load factor rose +0.5 point to 90.5% LF. (WJE) earned a +$65.8 million profit during the period compared to a +$17.2 million surplus in the first nine months of 2008.
(WJE) parent Allegiant Travel Company posted a record full-year profit of +$76.3 million, more than double the +$35.4 million reported in 2008. Operating revenue rose +10.7% to $557.9 million, while expenses dropped -2.8% to $435.7 million, boosting operating income more than twofold to +$122.3 million from +$55.8 million in 2008. Cost cuts came largely from decreased fuel and airplane leasing expenses.
(WJE) operated 42 MD-80s at year end compared to 36 at the close of 2008 on 136 routes to 69 destinations. Passenger numbers rose +24% to 5.3 million and system (RPM)s traffic were up +23.3% to 4.76 billion. Capacity increased +22.7% to 5.45 billion (ASM)s, lifting load factor +0.4 point to 87.4% LF. Operating (RASM) fell -9.8% to 10.24 cents against a -20.7% cut in unit cost to 8 cents. (CASM) excluding fuel rose +1% to 4.97 cents. Ancillary revenue per passenger climbed +12.4% to $33.07, helping to offset a -17.2% drop in average scheduled fare to $70.38.
The fourth-quarter profit of +$10.5 million was (WJE)'s 28th consecutive three-month period in the black but was down -42.1% from the $18.2 million reported in the year-ago quarter. Operating income slipped -37.1% to $18.1 million on a +10% increase in revenue to $134.7 million.
(WJE) said it sees "an improving pricing environment" ahead and that its 2010 focus will be on upgrading its Information Technology (IT) systems to accommodate its expansion. It expects first-quarter capacity growth of around +15% (ASK)s. The fleet is expected to grow to 48 airplanes by the end of the quarter and 52 by year end. It will take delivery of the 18 airplanes purchased from the (SAS) Group during the first half.
(WJE) parent, Allegiant Travel Company signed an agreement to purchase 18 MD-80s from the downsizing (SAS) Group and will take delivery during the first half of this year. (WJE) currently operates 46 of the type, of which 42 are owned. By the end of 2011, it will place 13 of the 18 (SAS) airplanes (MD-82s/-83s) into operation. Along with two MD-82s/-83s bought from (SAS) in a separate transaction and scheduled for delivery in the current quarter, the 13 airplanes will satisfy "essentially all of Allegiant (WJE)'s currently expected airplane growth through the end of 2011," it said. (WJE) plans to operate at least 52 planes by year end and up to 60 by the end of 2011.
The remaining five airplanes, all MD-87s, will be used for spare parts and engines. (WJE) will pay cash for the planes. It said the cost of placing each MD-82/-83 into service, including purchase price, maintenance, upgrades and modifications, will be less than <$4 million.
"Our ability to acquire such highly reliable airplanes at attractive economics permits (WJE) to closely tailor our capacity to demand, a key element of our leisure-oriented business model. We believe these are clearly the best MD-80 airplanes available, having an unbeatable maintenance pedigree and being sister ships to 11 [former (SAS)] airplanes already in our fleet, thereby enhancing fleet commonality," (WJE) President & CEO, Andrew Levy said. SkyWorks Leasing arranged the sale.
The MD-80s were removed from the (SAS) fleet as part of (SAS)'s restructuring program. It said the 18 airplanes were built between 1985 and 1991. Its fleet will comprise 191 airplanes following the transaction, including 24 MD-80s that will be "kept in (SAS) operation as inexpensive reliable airplanes, as well as airplanes to manage the seasonality effect in the Nordic region." (SAS) said (WJE)'s purchase will reduce the group's financial net debt by around -SEK200 million.
AAR (AFD)/(ALC) signed a five-year deal with Allegiant Air (WJE) to provide maintenance and modification work on (WJE)'s 46 MD-80s.
February 2010: Allegiant Air (WJE) flew 388.3 million (RPM)s in January, a +21.1% increase year-over-year. Capacity rose +20.6% to 450.7 million (ASM)s and load factor was up +0.4 point to 86.2% LF.
(WJE) will base two MD-80s at Grand Rapids (GRR) from April 27 and launch new twice-weekly flights to Myrtle Beach three days later, its sixth destination from the airport. (WJE) will increase its (GRR) service to 34 weekly flights and will have 60 employees based there.
MD-82 (49555, N416NW; 49615, N418NV; 53347, N417NV), bought from (SAS).
March 2010: Allegiant Air (WJE) flew 414.2 million system (RPM)s traffic in February, a +18% increase year-over-year. Capacity was up +17% to 469.8 million (ASM)s and load factor rose +0.8 point to 88.2% LF.
(WJE) parent, Allegiant Travel Company. will add six 757-200s to a fleet currently comprised entirely of MD-80s in order to "expand its leisure travel strategy" with nonstop flights to Hawaii.
(WJE) currently operates 46 MD-80s and in January it announced the purchase of 18 of the type formerly operated by the (SAS) Group. It said the 757s "will not affect its MD-80 growth plans" and that it now expects to have 52 MD-80s and two 757s in service by year end. Acquisition and preparation will cost $75 to $90 million, some of which likely will be financed.
The first two 757s will arrive "within the next two months" and will enter service in the fourth quarter. The airplanes scheduled for delivery in November and January 2011 will begin flying in the first half of next year, and a pair set for delivery in the 2011 fourth quarter will enter service in the first half of 2012. (WJE) said the 757s currently are operated by a European airline. It said it is making the deal "with the express purpose of serving Hawaii, a major leisure destination that it cannot serve with its existing MD-80 fleet."
Chairman & CEO, Maurice Gallagher Jr said the islands are "the most prominent USA leisure destination currently unserved by Allegiant (WJE) and our small city customers have been requesting this service. We are very optimistic about our ability to exploit the large third-party ancillary revenue opportunity we believe exists in Hawaii. We expect the sale of hotels, rental cars and many attractions and activities popular with Hawaii visitors will provide a very meaningful contribution to the success of the service."
President & CEO, Andrew Levy said adding a second type of aircraft is "consistent with our existing business model" centering on serving "large leisure destinations" from cities with "no alternative nonstop service."
Among the possible sellers are British Airways (BAB), which announced the sale of its 757 fleet last year but said it planned to offer them for cargo conversion; Astraeus Airlines (AUA), Finnair (FIN), Icelandair (ICE), and Thomson Airways (TFY).
2 757-204ERs (26963, N901NV; 26964, N902NV), bought from AerCap (DEA). MD-82 (49385), bought from (SAS) for parts. MD-82s (49909, N415NV; 53366, N419NV), bought from (SAS).
April 2010: Allegiant Travel Company, parent of Allegiant Air (WJE), reported +$22.6 million in net income for the first quarter, a -19.8% decrease from its year-ago profit of +$28.2 million. Operating revenue was up +19.4% to $169.6 million but expenses jumped +36.6% to $133.4 million on a +71.8% hike in airplane fuel costs to $57.4 million. This caused operating income to fall -18.5% to +$36.2 million. "We are pleased to announce our 29th consecutive profitable quarter with the results of the first quarter of 2010," CEO & Chairman, Maurice Gallagher said. Average airplanes in operation increased by seven to 46, lifting seat capacity +16.9% from the year-ago quarter to 1.56 billion (ASM)s, while traffic (RPM)s increased +17.7% to 1.37 billion. Load factor was 88.2% LF, up +0.6 point, the "eighth consecutive quarter of load factors near or above 90% LF," Gallagher said.
May 2010: Allegiant Air (WJE) flew 473.98 million (RPM)s traffic in April, up +12.3% year-over-year, on a +12.1% increase in capacity to 539.4 million (ASM)s. Load factor increased +0.2 point to 87.9% LF.
The Allegiant Travel Company, parent of Allegiant Air (WJE), announced it will offer $250 million aggregate principal amount of senior unsecured notes due 2017 to "qualified institutional buyers," planning to use the proceeds to pay for the purchase and induction costs of the MD-80s and 757s it agreed to purchase earlier this year. The remaining proceeds will be used to pay existing debt, and for other potential asset acquisitions, mergers or general corporate purposes, it said.
(WJE) named Northwest (NWA)/Delta Air Lines (DAL) Senior VP Technical Operations, Kris Bauer to the post of Senior VP Operations and promoted Scott Sheldon to CFO. VP Planning, Robert Ashcroft left the company.
Additionally, Brice Seating, a unit of Timco Aerosystems, said that Allegiant (WJE) selected its B3100 Featherweight series seat for MD-80 airplanes being added to its fleet starting in 2011.
June 2010: Allegiant Air (WJE) flew 419.07 million (RPM)s traffic in May, up +10% year-over-year, on a +8.2% increase in capacity to 455.06 million (ASM)s. Load factor increased +1.5 points to 92.1% LF.
(WJE) will launch five-times-weekly, Stockton - Long Beach service July 1 using an MD-80.
July 2010: Allegiant Air (WJE) flew 479.9 million (RPM)s traffic in June, up +7.8% from the year-ago month. Capacity rose +6.2% to 516.7 million (ASM)s and load factor increased +1.4 points to 92.9% LF.
(WJE) will launch twice-weekly, Idaho Falls (IDA) - Long Beach service on October 8 aboard an MD-80, replacing its (IDA0 - Los Angeles service that it launched June 3. (WJE) will launch service from Colorado Springs to Long Beach (five-times-weekly) and Phoenix Mesa (twice-weekly) on September 15 aboard MD-80s.
Aviation Partners Boeing (APB) announced orders from Allegiant Air (WJE) for blended winglets. Installations have begun for Allegiant (WJE)'s six shipsets of 757-200 blended winglets.
August 2010: Allegiant Air (WJE) flew 553.1 million (RPM)s traffic in July, up +23.7% year-over-year, on a +25.7% increase in capacity to 627.5 million (ASM)s. Load factor fell -1.5 points to 88.1% LF.
(WJE) will launch twice-weekly, Phoenix Mesa - Ft Collins service on October 8 aboard an MD-80. (WJE) will launch twice-weekly, Las Vegas - Moline/Quad Cities service on October 14 aboard an MD-80. (WJE) will start twice daily service from Minot, North Dakota to Las Vegas on October 22, adding to a string of recent successes for Minot International Airport. Delta (DAL), which already serves Minneapolis/St Paul from Minot, started Salt Lake City service in May and has increased its frequencies to Minneapolis, while United Airlines (UAL) began service to Denver in June. With the Allegiant (WJE) addition, the airport will have just over >60 scheduled service
departures per week to four destinations.
September 2010: Allegiant Travel Company, parent of Allegiant Air (WJE), said it will increase the capacity of its 57 MD-80s from 150 seats to 166 seats. It said it will invest $50 million in the retrofit. (WJE)'s three 130-seat MD-87s will not be reconfigured.
"These added seats will allow us to grow our capacity with the least amount of risk," (WJE) President, Andrew Levy said. "This project effectively increases our capacity by +11% (ASM)s, while lowering our cost per seat. In addition, we expect to fund this through internally generated cash-flow."
(WJE) expects the first airplane conversion to be completed in the 2011 third quarter and the last by the end of 2012. The added seats will warrant "substantial" re-design of the cabin including the removal of galleys, as well as the addition of a fourth flight attendant (CA) aboard each of the reconfigured airplanes.
October 2010: While nearly all USA airlines saw their earnings rise in the third quarter, Allegiant Air (WJE) parent, the Allegiant Travel Company reported net income fell -4.5% to +$13.2 million from +$13.8 million in the year-ago quarter. (WJE) cited the "effects of the slowdown in the general economy," for the lower result.
“Unlike business-oriented carriers, this slow down, combined with our substantial growth, led to smaller unit revenue increases than anticipated,” (WJE) Chairman & CEO, Maurice Gallagher stated. “As we have done in the past, we have reduced capacity in the coming quarters to allow us to push unit revenues accordingly. This is critical as we continue to see increases in our energy costs per passenger.”
Revenue rose +22.9% to $163.6 million, while expenses increased +29.7% to $144.1 million, producing an operating profit of +$19.5 million, down -11.2% from +$21.9 million in the prior-year quarter. Ancillary revenue totaled $50.1 million in the quarter, up +24.7% over last year and represented 31% of total revenues.
Scheduled traffic rose +23.8% to 1.36 billion (RPM)s on a +24.1% increase in capacity to 1.51 billion (ASM)s, producing a load factor of 89.6% LF, down -0.3 points. Yield lifted +3.8% to 7.68 cents as scheduled service (RASM) rose +3.6% to 6.89 cents. (CASM) was 8.75 cents, up +6.3% and (CASM) ex-fuel was 4.9 cents, down -0.6%.
Looking forward, Gallagher said (WJE) is continuing to expand the number of small cities served. On Wednesday, it announced it is consolidating its Orlando operation back to the original base at Orlando Sanford. “Our current plans for first quarter 2011 show modest capacity growth of +4% to +7%, but the change in same store capacity is forecast to be down almost -8% year-over-year during that period,” Gallagher said.
November 2010: Allegiant Air (WJE) launched twice-weekly, Lexington, Kentucky - Punta Gorda service aboard a 150-seat MD-80. (WJE) will launch four-times-weekly, MD-80 Long Beach - Las Vegas service on December 15.
(WJE) says planned routes to Hawaii will be delayed by about a year while it awaits (FAA) certification for over-water flights with newly acquired 757s. The 200-passenger jets will be used on other routes starting in the summer of 2011, but flights to Hawaii are not expected to begin until mid-2012, according to CEO, Maurice Gallagher.
December 2010: Allegiant Air (WJE) hired 2 pilots (FC) in November. (WJE) is opening a new base at Wendover on February 15. The pilots (FC) for Wendover are already hired. (WJE) is awaiting word on the 757 program to determine THE need for more pilots (FC). (WJE) should know more about that next month. (WJE) plans to acquire six 757-200 airplanes, with three to be delivered in 2010 and three in 2011. (WJE) plans to use the airplanes to serve the Hawaii market.
January 2011: Allegiant Air (WJE) said that December traffic rose +12.5% (RPM), as (WJE) benefited from a rebound in demand for air travel. (WJE) said it flew 456.8 million (RPM)s for the month, or one paying passenger flown one mile. Capacity rose 13.8% to 510.5 million (ASM)s. Load factor, fell -1.1% points to 89.5% LF.
For the full year, traffic rose +16.4% to 5.21 billion (RPM)s. Capacity was up +16% to 5.74 billion (ASM)s. Load factor rose +0.4% points to 90.8% LF.
(WJE) said it expects capacity to grow +11% in January, 3% to 5% in the first quarter, and 4% to 8% in the second quarter.
Allegiant Travel Company, parent of (WJE), reported a fourth-quarter 2010 net profit of +$12.4 million, up +17.5% over $10.5 million earned in the year-ago period. Net income for the full year fell -13.9%, however, to $65.7 million, from $76.3 million in 2009. "We have concluded another very successful year," Allegiant Travel Company Chairman & CEO, Maurice Gallagher said, noting the company now has been profitable for 32 consecutive quarters and eight straight years.
However, rising fuel prices persuaded (WJE) to temper its growth this year, with first-quarter scheduled capacity (ASM)s now expected to be up +3% to +6% year-over-year rather than +4% to +7% as planned last fall and second-quarter capacity set to be flat to +4% up, versus prior estimates of +6% to +10%. (WJE), which operates a fleet of 51 MD-80s, does not hedge fuel.
Operating revenues for the fourth quarter rose +20.3% to $162 million with operating expenses up +21% to $141.2 million. Operating income climbed +15.5% to +$20.9 million from +$18.1 million the year before.
Full-year operating revenues climbed +18.9% to $663.6 million but this was eclipsed by a +28.3% hike in expenses to $559 million with the result that annual operating profit dropped -14.4% to $104.7 million from $122.3 million in 2009. Biggest contributor to the rise in expenses was a +47.7% jump in fuel expenses as average cost per gallon climbed +30.7% and consumption rose +13.4%.
(WJE) carried 5.6 million passengers on scheduled flights last year, up +14% over 2009. It flew 5.2 billion (RPM)s, up +16.4% and 5.7 billion (ASM)s, up +16%, resulting in a load factor of 90.8% LF, up +0.4 points compared to 2009. Scheduled service yield rose +6.2% to 8.21 cents. Total (RASM) was 10.83 cents, up +5.4%, of which 31% came from ancillary products. Cost per (ASM) was 8.95 cents, up +11.9%. (CASM) excluding fuel climbed just +1.6% to 5.05 cents.
(WJE) announced that Scott Allard will join the company as CIO, having held the same position at Spirit Airlines (SPR). Greg Baden was named VP, Flight Operations Systems Operational Command (SOC); he previously served as Managing Director Flying at Delta Air Lines (DAL). Also, Greg Rehwaldt joined the company as VP Stations. He most recently served as VP Operations for UnitedHealth Group and has an airline industry background prior to that.
In a textbook preemptive move, Alaska Airlines (ASA) began flying to Honolulu from Bellingham, an airport located between Seattle and Vancouver, BC, Canada. The idea is to prevent Allegiant Air (WJE), which already serves eight destinations from Bellingham, from getting a foothold in the Hawaii market, one that’s increasingly key to (ASA)’s fortunes. (WJE) is buying 757s to start Hawaii service. Of course, Air Canada (ACN) and WestJet (WJI) also fly to Honolulu from Vancouver, BC, while (ASA) and Delta Airlines (DAL) have Honolulu non-stops from Seattle. It might not be long before Southwest (SWA) enters the Hawaii market using 737-800s (which start arriving in 2012), although it would probably fly there from California, where it has stronger brand loyalty. (ASA) is also using 737-800s for its new Bellingham flights.
(WJE) will begin service between Minot, North Dakota and Phoenix-Mesa on March 3 with service on Thursday and Sunday. It already flies from Minot to its Las Vegas base. The new route follows an announcement earlier this month that it will begin service February 18 between Moline/Quad Cities, Illinois, and St Petersburg Clearwater International Airport, with flights on Monday and Friday.
February 2011: Allegiant (WJE) is currently evaluating its hiring needs. The company opened a new base at Wendover on February 15. The pilots (FC) for Wendover are already hired. (WJE) is awaiting word on the 757 program to determine its need for more pilots (FC). (WJE) plans to acquire six 757-200 airplanes: three were delivered in 2010 and three in 2011. (WJE) will be attending the http://www.FltOps.com job fair in Las Vegas (LAS) on April 1.
March 2011: Allegiant Air (WJE) will operate seasonal twice-weekly, Shreveport - Orlando Sanford service starting May 19. (WJE) will launch seasonal twice-weekly, Laredo - Orlando Sanford service May 20 through "mid-August."
May 2011: Allegiant Travel Company, parent of Allegiant Air (WJE) reported earnings of $17.2 million for the first quarter, down -24.1% compared to income of +$22.6 million in the year-ago period in large part owing to a +38% rise in fuel costs.
"We are very proud to report our 33rd consecutive profitable quarter," Chairman & CEO, Maurice Gallagher said, adding, "We are especially pleased about these results in light of the rapid increase in fuel prices we experienced during the quarter, in particular during the month of March, typically our most profitable month of the year."
Total operating revenue rose +13.9% to $193.2 million. Ancillary revenue rose +9.9% to $52.3 million, accounting for 27% of total turnover. But operating expenses climbed much faster, up +24% to $165.4 million, and operating profit dropped -23.2% to $27.8 million.
In addition to higher fuel expenses of $79.2 million, employee costs climbed +19.2% to $30.9 million, driven largely, the company said, by rising pilot (FC) wages under the compensation agreement that took effect a year ago. Additionally Maintenance Repair & Overhaul (MRO) costs climbed +27% to $16.2 million, as the company is now choosing to overhaul more MD-80 engines instead of replacing them as they come due for maintenance.
(WJE) carried 1.4 million passengers in scheduled service during the quarter, up +6.5% year-over-year. Scheduled (RPM)s rose +4% to 1.36 billion and (ASM)s rose +2.7% to 1.47 billion. Load factor was 92.9% LF, up +1.2 points.
Total (RASM) including charter services climbed +9.6% to 11.94 cents and (CASM) was up +19.3% to 10.22 cents, or +9.2% to 5.33 cents excluding fuel. (WJE) reduced flying during the quarter, with average airplane daily block hours falling -5.9% to 6.8 hours and average departures per day declining -3.6% to 2.7 hours.
June 2011: Allegiant Travel Company named Michael Reichartz Senior VP Marketing. Reichartz was one of the original employees at Travelscape and has served as Expedia VP Lodging. Reichartz will oversee (WJE)'s third-party products, e-commerce/consumer marketing, advertising and corporate communications groups, said Allegiant (WJE).
July 2011: Allegiant Air (WJE) will begin to operate existing Las Vegas service to McAllen (Texas) and Rockford (Illinois) with a 757-200.
(WJE) said it has gained USA (FAA) approval to begin operating the 757-200 airplane type, the first step toward its planned launch of flights to Hawaii next summer. (WJE) operates a fleet of 51 MD-80s, which don't have the range to reach Hawaii from the continental USA.
(WJE) last year announced it would add 757-200s to its fleet. It currently owns four of the type, three of which are leased to two European carriers through mid-2012. It noted that it has also committed to buying two more 757-200s.
Initially, (WJE) will operate a 757 on existing routes from Las Vegas to McAllen (Texas) and Rockford (Illinois). (WJE)'s 757-200s will be configured to seat 217 passengers in a single-class cabin.
(WJE) said its "next focus" is gaining Extended Twin-engine OPerationS (ETOPS) certification from the (FAA) to allow it to fly to Hawaii, "which (WJE) anticipates achieving in summer 2012."
August 2011: Allegiant Air (WJE) will launch twice-weekly, Phoenix - Duluth, Minnesota service on October 21. (WJE) will launch 2X-weekly, Niagara Falls, NY - St Petersburg service on December 15.
October 2011: The Allegiant Travel Company reported third quarter net income of +$9.5 million, down -27.9% from +$13.8 million in the year-ago quarter, owing mainly to higher fuel prices.
(WJE) Chairman & CEO, Maurice Gallagher Jr said that this year’s elevated fuel prices led (WJE) to restrict capacity and increase fares by +21% in the third quarter.
Revenue rose +17% to $191.5 million, while expenses increased +21.2% to $174.8 million, producing an operating profit of +$16.7 million, down -14.1% from the prior-year quarter.
Scheduled traffic decreased -0.6% to 1.35 billion (RPM)s on a -3.3% fall in capacity to 1.46 billion (ASM)s, producing a load factor of 92.2% LF, down -2.6 points. Yield rose +21.2% to 9.31 cents as scheduled service (PRASM) rose +24.5% to 8.58 cents. (CASM) was 10.97 cents, up +25.4% and CASM ex-fuel was 5.69 cents, up +14.7%.
As of September 30, (WJE) had an operating fleet of 52 MD-80 airplanes and one 757 airplane. Gallagher said (WJE) introduced the first of six 757-200s in July, the first step toward its planned launch of flights to Hawaii next summer. (WJE) currently operates two routes to/from Las Vegas. “For a nominal amount of additional fuel burn, we are generating +67 additional profit-potential seats he said. “We continue to push ahead with our Extended Twin-engine OPerationS (ETOPS) certification from (FAA) and expect more progress after the first of the year.”
Gallagher said the conversion of its MD-80 fleet to 166Y seats is expected to be completed by year end. “ We now have two 166Y-seat MD-80s in service on our Bellingham routes. We expect to have 9 to 10 airplanes available by year end,” he said.
(WJE), famous for profitably connecting small USA cities with big leisure destinations, will for the first time connect two of its largest leisure bases with each other. Flights between Las Vegas and Mesa airport near Phoenix will begin six times a week (that’s a high-frequency market by (WJE)’s standards) in November. (WJE) is marketing both cities as destinations for consumers living in the other (still, the majority of demand will likely originate in Phoenix). The market will also, notably, be among (WJE)’s shortest routes (just 276 miles in the air), meaning it will compete not just against other airlines like Southwest (SWA), which operates about as many frequencies (using Phoenix’s main airport) before breakfast each day as (WJE) will operate all week, but also against car travel. Could this be a sign that (WJE) is running out of small-city-to big-city opportunities? Well remember (WJE) (with its variable-cost model featuring old MD-80s that are cheap to own but expensive to operate) would always rather park an airplane than fly it unprofitably. So it must sense opportunity thanks to, among other things, the fact that Phoenix and Las Vegas surprisingly lack a fast interstate connection, meaning a rather slow drive. Mesa airport, too, is particularly convenient for people in Phoenix’s southern suburbs, and it’s easy to use and features cheap parking. Plus Southwest (SWA)’s fares in the market are rather high (yes, (SWA) chases yield these days) and strippers commuting to Las Vegas each weekend don’t care about Bags Fly Free.
(WJE) won’t, however, soon begin serving Gary airport in northwestern Indiana, south of Chicago, following a bizarre week in which the airport scheduled an event to announce service and then abruptly canceled it. Range limitations because of a runway that’s essentially shortened by a nearby rail line were apparently the issue.
(WJE) will eliminate service at Long Beach in southern California on November 28. It began service from the airport on July 1, 2010. Nearby Los Angeles is one of (WJE)’s leisure bases. Its slots at capacity-constrained Long Beach, where JetBlue (JBL) dominates, will be distributed to other airlines.
(WJE) is apparently having more success at Moline/Quad Cities in Iowa, where it will add twice-weekly Orlando Sanford service beginning in February. It already flies from Moline to Las Vegas, Phoenix Mesa and Tampa/St Petersburg. (WJE) launched 2X-weekly, Owensboro, Kansas - Las Vegas service.
November 2011: Allegiant Air (WJE) launched 2X-weekly, Appleton, Wisconsin - Phoenix Mesa service. (WJE) launched 2X-weekly, Knoxville - Las Vegas service; 2X-weekly, Asheville - Orlando Sanford service; and 2X-weekly service to Ft Lauderdale from Lexington, Kentucky and Bangor, Maryland. It will launch 6X-weekly, Mesa, Arizona - Oakland International on January 18.
The Allegiant Travel Company has inked a purchase agreement with Scandinavian Airlines System (SAS) for up to 13 MD-80 airplanes and 12 (JT8D-219) spare engines in 2012 and 2013.
According to Allegiant Air (WJE), these purchases will primarily be used to “replace engines that will be coming due for major overhauls over the next two years, thus helping (WJE) to optimize its engine-related maintenance expense.”
The agreement also gives (WJE) the flexibility to use several of the airplanes for additional MD-80 fleet growth in the future, it said.
(WJE) reported net income of +$9.5 million, down -27.9% from +$13.8 million in the year-ago quarter, owing mainly to higher fuel prices.
December 2011: Allegiant Air (WJE) outsources all its "C" maintenance checks and anything heavier.
January 2012: Allegiant Air (WJE) will launch 2X-weekly, Bloomington, Illinois - Orlando Sanford service on May 16.
(WJE) will conduct a new Flight Crew (FC) class this month with another class of pilots (FC) predicted for February. (WJE) will be taking delivery of additional airplanes in 2012. See FltOps.com and FAPA.aero.
February 2012: The Allegiant Travel Company, parent of Allegiant Air (WJE), reported a fourth-quarter 2011 net profit of +$10.8 million, down -12.7% over +$12.4 million earned in the year-ago period. Net income for the full year fell -24.8% to +$49.4 million from +$65.7 million in the year-ago period.
(WJE) Chairman & (CEO), Maurice Gallagher said that “while fuel put a dent in the operating results for the year, we made excellent progress in our ongoing projects including introduction of our 757 airplanes, beginning our 166-seat conversion and automation upgrades.”
Revenues for the fourth quarter rose +19.7% to $194 million with expenses up +23.1% to $174 million. Operating income declined -3.2% to +$20.2 million from +$20.9 million the year before.
Senior VP & (CFO), Scott Sheldon said that fuel, maintenance and depreciation expense “continued to place pressure on our cost structure during the fourth quarter of 2011. Our fuel cost per passenger increased nearly +$9, or +19.7%, to $54 during the quarter.”
Full-year revenues rose +17.4% to $779.1 million, while expenses rose +24.1% to $693.7 million, producing an operating income of +$85.4 million, down -18.4% in 2010.
Scheduled traffic for the year rose +2% to 5.3 billion (RPM)s, on a +1% increase in capacity to 5.8 billion (ASM)s, producing a load factor of 91.7% LF, up +0.9 points compared to 2010. Scheduled service yield rose +18% to 9.69 cents. Total (RASM) was 12.5 cents, up +15.4%. Cost per (ASM) was 10.9 cents, up +21.8%. (CASM) ex-fuel, climbed +12.9% to 5.70 cents.
Gallagher said (WJE) expects to have “at least 16 166-seat MD-80 airplanes in service by the end of the first quarter 2012, and we are on track with our forecast for Extended Twin-engine OPerationS (ETOPS) certification later this year, which will allow us to begin our Hawaii service.”
Allegiant Air (WJE) will open a new base at Oakland International (OAK) April 26, with two 166-seat, MD-80 series airplanes. It will launch service from (OAK) to Billings, Montana (April 26); Bozeman, Montana (April 27); Kalispell, Montana (April 27); Idaho Falls, Idaho (April 27); Medford, Oregon (April 26); Missoula, Montana (April 27); and Redmond, Oregon (April 26).
March 2012: Allegiant Air (WJE) will launch 2X-weekly, Hagerstown, Maryland - Orlando Sanford service on May 25.
April 2012: Las Vegas-based, Allegiant Travel Company, parent of Allegiant Air (WJE), reported earnings of +$21.7 million for the first quarter, up +26.5% compared to +$17.2 million in the year-ago period.
Total operating revenue increased +23.1% to $237.9 million, while expenses climbed +21.9% to $201.5 million, producing an operating profit of +$36.3 million, up +30.5% from +$27.8 million in the year-ago quarter.
Total ancillary revenue was up +22.9% to $64.3 million, compared to $52.3 million in the year-ago quarter.
(WJE) Chairman & (CEO), Maurice Gallagher said that fuel expenses have continued to be the biggest weight on (WJE)’s profit margins. Airplane fuel rose +29.3% in the first-quarter to $102.4 million, compared to $79.2 million in the first-quarter of 2011. To offset fuel increases, (WJE) said it has raised fares +6%, has started charging for carry-on bags and has aggressively adjusted capacity.
Scheduled traffic during the quarter rose +19.6% to 1.63 billion (RPM)s, on a +22% increase in capacity to 1.79 billion (ASM)s, producing a load factor of 91.1% LF, down -1.8 points compared to the year-ago quarter. Scheduled service yield rose +5.1% to 9.93 cents. (PRASM) increased +3.1% to 9.04 cents. (CASM) ex-fuel was down -3% to 5.17 cents.
“We are focused on the business of performing well, and will adjust accordingly to maintain our profitability and our margins,” Gallagher said.
(WJE) has announced a new base at Punta Gorda, Charlotte County airport (PGD), Florida, where it will base a single MD-80, and its first flights to Hawaii on April 10. (WJE) had announced plans to start serving Hawaii over 2 years ago which at the time was given as the reason for adding 757-200s to the fleet.
(WJE) will inaugurate service from Punta Gorda Airport (PGD) to Fort Wayne (FWA), Indiana (June 28); Niagara Falls (IAG), New York (June 29); Peoria (PIA), Illinois (June 28), and South Bend (SBN), Indiana (June 27). It will also launch Honolulu service to Fresno (FAT), California (June 30); and Las Vegas (LAS) (June 29).
(WJE) and Spirit Airlines (SPR) will have to suspend their routes to Niagara Falls International (IAG) between mid-May and the end of June as a result of major repair work being carried out on the airport's runway. Allegiant Air (WJE) currently serves Orlando Sanford International (SFB) and Tampa International (TPA) and plans to add Fort Lauderdale Hollywood International (FLL) and Punta Gorda Charlotte County (PGD) after the airport reopens for commercial service. Spirit (SPR) currently operates to Niagara Falls from Fort Lauderdale Hollywood International (FLL) and Myrtle Beach International (MYR).
(WJE) will launch 2X-weekly, Fort Lauderdale - Niagara Falls service on July 1.
May 2012: Allegiant Air (WJE) now flies from Orlando Sanford Airport in Florida to Central Illinois Regional Airport at Bloomington. (WJE) addeds services to Billigins, Medford, Redmond-Bend, Bozeman, Idaho Fall, Kalispell and Missoula from Oakland, California.
June 2012: The Allegiant Travel Company, parent of Allegiant Air (WJE), has been granted (FAA) Extended Twin-engine OPerationS (ETOPS) certification and flag carrier status, clearing the way to begin flights to Hawaii this month.
"Obtaining (ETOPS) and flag carrier status not only clears the path for our new service to Hawaii, but also opens up potential international opportunities and will play an important role in our company's future growth," (WJE) President, Andrew Levy said.
(WJE) said it will begin nonstop Las Vegas - Honolulu service on June 29. Through November, it will also begin flights to Honolulu from the California cities of Fresno, Monterey, Santa Maria, and Stockton; from Bellingham (Washington); and from Eugene (Oregon). Flights from Bellingham to Maui, Hawaii, will also begin in November.
(WJE) will operate 757-200 airplane on its Hawaiian routes. The company operates four 757-200 airplanes and owns two more, which are on lease to a European carrier. “These airplanes are expected to be introduced into (WJE)'s fleet during the fourth quarter of 2012 and the first quarter of 2013,” the company said.
(WJE) launched 2X-weekly, Orlando Sanford - Scranton, Pennsylvania. service on June 21.
July 2012: Allegiant (WJE) will launch 2X-weekly, Ogden, Utah - Phoenix service on September 20.
Las Vegas’ McCarran International Airport (LAS) has opened its new Terminal 3. At 1.9 million sq ft, the terminal is the largest public works project in Nevada’s history, costing $2.4 billion and taking five years to construct.
(WJE) said it will lease 19 used Airbus A319s to begin entering its fleet in the 2013 second quarter.
(WJE) plans to use the A319s to support planned capacity growth and to replace at least two older airplanes. “The A319 is a new airplane type for Allegiant (WJE), but we otherwise see this as a continuation of our existing business model,” President, Andrew Levy said. “A319 asset values have significantly declined and now mirror the environment we saw when we first began buying MD-80s.”
(WJE)’s fleet currently comprises 58 MD-80s, as well as four 757-200s it is using to launch Hawaii services; it also owns two additional 757-200s.
(WJE) said it will lease nine former easyJet (EZY) A319s from (GE) Aviation Capital Services (GEF) and 10 A319s from Cebu Pacific Air (CEB); it plans to eventually buy the 10 A319s from (CEB). At this time, (WJE) only plans to retire two MD-80s, portending strong capacity expansion over the next several years. All of the A319s are expected to be in service with (WJE) by the 2015 third quarter.
Noting that the A319’s range is 3,600 nautical miles compared to the MD-80’s 1,400 nm range, (WJE) said the A319s will open “many new route opportunities.”
COMMENT IN "ATW DAILY NEWS:" In these current times where politicians are pushing "buy American products" and "create jobs for American workers" it is ironic that an airline based in Las Vegas would gamble on its future success by making the incredible decision of acquiring European airplanes. Well at least there will be some American jobs created by Airbus opening their new manufacturing satellite at Mobile, Alabama, USA. Also Airbus considers it is "the largest export customer for the USA aerospace industry. Since 1990, Airbus has spent $127 billion with USA suppliers - $12 billion in the last year alone!"
August 2012: The Allegiant Travel Company, parent of Allegiant Air (WJE), reported earnings of +$25.2 million, more than doubling its year-ago net income of +$11.9 million.
Total operating revenue increased +15.3% to $231.2 million, while expenses rose +5.3% to $189.3 million, producing an operating profit of +$41.9 million, more than twice the +$20.7 million operating profit in the year-ago quarter.
(WJE) Chairman & (CEO), Maurice Gallagher told reporters and analysts that nonfuel unit costs were down -14%. “Maintenance in this instance was the big driver in this reduction,” he said, adding that maintenance and repairs expense per passenger decreased -34.9% due primarily to a -64% decline in engine overhaul expenses.
Gallagher said the company “saw all unit costs decline in every category, save depreciation and amortization. A +18% growth in capacity (ASM)s year-over-year and modest increases in absolute cost will generate these reduced amounts,” he said.
(WJE) said airplane fuel expense per gallon declined -2.5% or $.08 per gallon. Ancillary revenues per passenger were $39.67 in the second quarter, the highest in the company’s history.
Scheduled traffic during the quarter rose +18% to 1.56 billion (RPM)s, on a +20.4% increase in capacity to 1.73 billion (ASM)s, producing a load factor of 90.1% LF, down -1.9 points compared to the year-ago quarter. Scheduled service yield was down -3.7% to 9.71 cents. (PRASM) decreased -5.6% to 8.75 cents. (CASM) ex-fuel declined -13.9% to 5.1 cents.
Allegiant Air (WJE) will launch non-stop service from two new mainland USA markets to Hawaii in February 2013, taking its total number of planned Hawaii routes to ten.
(WJE) will begin flights between Spokane, Washington and Honolulu from 8 February, and between Boise, Idaho and Honolulu from 9 February. Spokane and Boise are currently not served by (WJE) which will operate weekly on both routes.
(WJE) started serving Hawaii in June, and has already announced eight routes this year serving the island state. It has started operating on two routes and will launch flights on the remaining six in November.
(WJE) received extended range operations certification from the Federal Aviation Administration in June to operate its 757s on the Hawaii flights.
It has four 757s in service currently and will add two more in the first quarter of 2013 when the airplanes are returned to Allegiant (WJE) from a UK carrier leasing them. (WJE) has said it could grow its 757 fleet further to feed expansion in Hawaii. (WJE) will be the only airline operating on the two new routes.
(WJE) will suspend Los Angeles, California service to Billings, Montana; Pasco, Washington; and Sioux Falls, South Dakota August 31, due to a decline in allotted gate space.
(WJE)'s 350 pilots (FC), previously non-unionized, have voted to join the International Brotherhood of Teamsters (IBT) union. “Pilots (FC) want fair work rules, improved scheduling, improved pension and health care benefits and the security of a Teamster contract,” (IBT) said, adding that unionization was a “major victory” for Allegiant (WJE)'s flight deck crew (FC).
“Allegiant (WJE) respects the right of the pilot (FC) group to elect third-party representation, and we will work with the (IBT) to the best interests of both our employees and the company,” (WJE) (CEO) & Chairman, Maurice Gallagher said. “Contract negotiations can be a lengthy process and we do not anticipate any disruptions to our business or operations.”
As of August 1, (WJE) has 30 166Y economy seat MD-80s and expects all West Coast-scheduled MD-80s to have 166 seats by the end of the third quarter. It has been operating four 757s since July 2.
September 2012: Allegiant Air (WJE) added the state of Utah to its network on 20 September when (WJE) launched flights from Phoenix-Mesa, Arizona airport (AZA) to Ogden, Utah airport (OGD). The airport, located only 50 kilometers north of Salt Lake City and therefore functioning as a secondary airport for Utah’s capital, will now be connected twice-weekly with the airport serving Arizona’s golf and sunshine resorts. This is the only scheduled commercial service at Ogden Airport.
(GE) Capital Aviation Services (GEF) leased nine A319s to Las Vegas-based, Allegiant Air (WJE). All nine A319s are powered by (CFM56-5B) engines and are scheduled for delivery to (WJE) beginning in November through 2015.
October 2012: The Allegiant Travel Company, the parent of low-cost leisure carrier Allegiant Air (WJE), reported third-quarter net income of +$16.9 million, up +78% from a +$9.5 million profit in the year-ago period. (WJE) said ancillary air-related revenue per passenger has grown to $37.05 in the third quarter 2012, a +$4.66 increase since the first quarter, and an increase of +22% over third quarter 2011.
The third quarter is the 39th consecutive profitable quarter for (WJE). “The third quarter is typically our weakest quarter of the year, and yet we were able to produce the highest third-quarter earnings per share in the company’s history. This is particularly noteworthy to have done this in a quarter with the average oil price at $92 per barrel and in a demand environment that has been slightly weaker than historical norms,” Maurice J Gallagher, Jr, Chairman & (CEO), said.
Third-quarter revenue rose +13.2% year-over-year to $216.86 million, while expenses increased +7.6% to $188.1 million, producing an operating profit of +$28.7 million, up +71.8% from a +$16.7 million operating profit in the prior-year quarter.
(WJE) traffic rose +12.2% to 1.6 billion (RPM)s on a +14.7% increase in capacity to 1.8 billion (ASM)s, producing a load factor of 87.4% LF, down -2 points.
Yield dipped -5.9% to 8.76 cents as (RASM) lowered -1.3% to 11.86 cents and (CASM) decreased -6.2% to 10.29 cents. (CASM) ex-fuel was 5.37 cents, down -5.6%.
(WJE) is adding 15 new routes in the fourth quarter. It will also add more destinations to Hawaii. (WJE) began service to Honolulu at the end of June from Las Vegas, Nevada and Fresno, California. Maurice Gallagher said the Hawaii service is exceeding expectations. On November 12, (WJE) will take delivery of its first of nine A319s leased from (GE) Capital Aviation Services (GECAS) (GEF). (WJE) has also purchased another 10 A319s from Cebu Pacific (CEB).
(WJE) expanded its network out of Orlando Sanford, Florida (SFB) on 25 October when (WJE) became the only operator of scheduled commercial traffic at Columbus Rickenbacker, Ohio (LCK), the secondary airport for Ohio’s capital city that was left without services when Vision Airlines (VIS) left the airport in early September. (WJE) operates the route twice a week with its MD-80s. Indirect competition at Port Columbus International comes from Southwest Airlines (SWA)’s 15 weekly flights and its subsidiary AirTran (CQT)’s daily operations to Orlando International.
The Allegiant Travel Company has formed a mobile technology joint venture (JV) with airline technology consultant, AvIntel and mobile data product developer, Lixar (IT). The (JV), called Allegiant Systems, will provide mobile technology services to the commercial aviation industry.
Former AvIntel Managing Director, Andrew Kemmetmueller has been named (CEO) of the new company, which will initially provide software-as-a-service solutions to (WJE) and other airlines. The cloud-based model can assist airline operations in areas including electronic flight bag (EFB), in-flight operations such as buy-on-board, and cabin crew automation.
Allegiant Air (WJE) will be giving passengers the option of wirelessly streaming entertainment content to their personal electronic devices with Row 44's video-on-demand service. The ultra-low cost carrier (LCC) will retrofit equipment for the system on its 757s starting in 2013. These airplanes primarily fly from destinations in the mainland USA to Hawaii. (WJE) operates four 757-200s.
(WJE) has opted for a version of Row 44's on-demand service that does not receive content from a satellite connection. Instead, content is stored on a 1.8 terabyte server in the airplane streams movies, television shows, games, flight maps and music to personal devices within the cabin.
The set-up that (WJE) is installing will require the same set of equipment as Row 44's Ku-band wifi service, but the main difference is that it does not require an antenna for satellite streaming. In that regard, this system differs from Row 44's live television service that Southwest Airlines (SWA) is currently testing. That platform uses a Ku-band satellite to stream video channels to passengers. (WJE) has instead opted to offer on-demand content in a configuration where it is stored locally on the server, rather than arriving through a satellite link.
(WJE) joins the growing amount of operators streaming on-demand content wirelessly to personal electronic devices. Delta Airlines (DAL) secured a deal with Gogo at the Airline Passenger Experience Association Expo earlier this month to install the Gogo Vision on-demand streaming product on more than >950 airplanes, and Inmarsat is working with OnAir to provide on-demand video via SwiftBroadband with (SBTV).
Allegiant Air (WJE) is hiring pilots Flight crew (FC).
See FAPA.aero: Pilot Career Conferences & Job Fairs
...For Future & Active Pilots (FC).
November 2012: Allegiant Air (WJE) took on Alaska Airlines (ASA) on two routes to Hawaii out of Bellingham, Washington (BLI), the secondary airport for Vancouver, Canada. (WJE) also launched a further three routes to Honolulu (HNL) as it expanded in the Mainland USA to the Hawaii market with its 223Y-seat 757s. (WJE) also began operating two routes to Palm Springs (PSP) and one to Fort Lauderdale (FLL).
(WJE) returned to MidAmerica St Louis (BLV) on 7 November when (WJE) resumed services from Orlando Sanford (SFB). The secondary airport for St Louis had been left without scheduled commercial services when (WJE) pulled out at the beginning of 2009. (WJE) last operated the route from Sanford in August 2008. Twice-weekly flights, on Thursdays and Sundays, are now operated with (WJE)’s MD-80s. Indirect competition between Lambert-St Louis and Orlando International comes from Southwest (SWA)’s 29 flights a week.
(WJE) launched four new routes, each operating twice-weekly with (WJE)’s MD80s. Notably, all destinations are new to (WJE)’s network or have seen (WJE) return. Harrisburg, Pennsylvania (MDT) got new services from two Florida airports; Orlando Sanford (SFB), Florida on 31 October and St Petersburg/Clearwater (PIE), Florida on 2 November. The Sanford route faces indirect competition at Orlando International from Frontier (FRO)’s four weekly flights. On 1 November, (WJE) resumed the route from Orlando Sanford to Lansing (LAN), capital of the state of Michigan, which it previously operated between 2005 and 2008. The same day, (WJE) also connected its Phoenix/Mesa (AZA) Arizona with Rochester (RST) Maine, a distance of just over >2,000 km.
(WJE) will start gradually retiring its MD-80 fleet throughout next year starting with one of its two MD-87 by the end of this year and a second MD-87 as well as five additional MD-80s next year that will be replaced by the A319-100s Allegiant (WJE) will start putting into scheduled service from spring 2013. (WJE) currently operates 4 MD-82s, 46 MD-83s, 2 MD-87s and 6 MD-88s. The MD-87s will be cut from the fleet as it has lost its charter contract with casino operator Ceasar to Frontier Airlines (FRO). In other news, Allegiant has announced that it is looking at launching international flights to Mexico from late 2013 or early 2014 from its bases at Las Vegas McCarran International (LAS) and Orlando Sanford International (SFB). It is also considering launching Cancún International (CUN) as a new destination market from smaller USA cities around the same time.
December 2012: In the southwest of USA, Allegiant Air (WJE) will fly to its Phoenix Mesa leisure base from Provo, Utah, home to Brigham Young University. (WJE)'s only other destination in Utah is Ogden. (WJE) does not fly to Salt Lake City, where Delta Air Lines (DAL) and Southwest Airlines (SWA) have a large presence.
(WJE) launched three new routes on 15 December. (WJE) now flies to Montrose, Colorado (MTJ), one of the primary gateways for the popular ski resort of Telluride, from both Oakland, California (OAK), and Phoenix-Mesa, Arizona (AZA). Telluride Tourism Board President, Michael Martelon, said: “There has never been a more affordable or more accessible way for people in Phoenix and the Bay Area to discover what makes Telluride one of the world’s premier winter vacation destinations.” In addition, Allegiant Air (WJE) inaugurated services from the Phoenix airport to St Cloud, (STC). All new routes are offered with twice-weekly frequencies and operated using MD-80s.
The Allegiant Travel Company said it will buy up to nine ex-Iberia (IBE) A320 airplanes (seven in 2013 and two in 2014).
At the time of delivery, the 177-seat airplane will have an average age of 12 years. It expects to place the first airplanes into service late in the third quarter of 2013; all nine will enter service by the end of 2014.
Allegiant (WJE) President, Andrew Levy said the A320 will “enable us to continue cost-effective growth for years to come.” They are powered by (CFMI) (CFM56) engines.
(WJE) said it does not expect the additional airplanes to affect its 2013 capacity as it will vary MD-80 utilization; it is not planning to retire MD-80s as a result of the transaction.
(WJE) now expects its 2013 total capital expenditures to be between $270 and $280 million versus the previously forecast of $150 to $160 million. (WJE) recently leased nine A319s from (GECAS) (GEF) and purchased 10 A319s from Cebu Pacific (CEB).
January 2013: Allegiant Air (WJE) inaugurated two new low-frequency routes over the Christmas period. On 20 December, (WJE) commenced services on the route from Las Vegas (LAS) to Plattsburgh, New York (PBG), which at just over 3,600 km is (WJE)’s longest overland routing. Given Plattsburgh’s close proximity to greater Montreal, (WJE) hopes to tap into a potentially strong market of Canadian travelers, who’ll cross the Canadian border by car and then fly to Nevada as domestic passengers. On the same day, (WJE) also commenced flights from Phoenix-Mesa, Arizona (AZA) to Casper, Wyoming (CPR). (WJE) already offers twice-weekly flights from Casper to Las Vegas. Both new routes are offered with twice-weekly frequencies and operated using MD-80s.
Allegiant Travel has canceled its proposed transaction to acquire 10 Airbus A319s from Cebu Pacific Air (CEB).
Allegiant (WJE) originally announced the transaction in July after signing a letter of intent (LOI) with (CEB), but canceled the order after failing to agree on several provisions involved in the transaction. "Unfortunately we were unable to come to terms on some of the economic provisions of the transaction and as we have demonstrated in the past, we will not purchase airplanes just for the sake of growth. Our disciplined approach in asset purchases is a core competency that we will not compromise,” said Andrew C Levy, President of the Allegiant Travel Company.
Levy said the company will remain active in pursuing more opportunities to purchase or lease additional Airbus (EDS) planes.
Instead these airplanes will be replaced by the nine ex-Iberia (IBE) A320-200s, Allegiant (WJE) plans to acquire this and next year. (WJE) still plans to lease a total of 10 ex-easyJet (EZY) A319-100s from lessor (GECAS) (GEF).
At the end of this month, Allegiant Air (WJE) parent, the Allegiant Travel Company posted a fourth-quarter 2012 net profit of +$14.8 million, up +36.6% over year-over-year. This marks its 40th consecutive profitable quarter. Net income for the full year leapt +59.1% to +$78.6 million from +$49.4 million earned in the full year 2011.
“In 2012, we recorded the highest system fuel cost per gallon we have ever paid for a full year,” (WJE) Chairman & (CEO), Maurice Gallagher said. “In spite of that, we were able to grow full year earnings per share over >+58% to the highest ever."
Revenues for the fourth quarter rose +14.9% to $222.8 million on a +13.6% jump in expenses to $197.5 million. Operating income lifted +25.8% to $25.4 million.
Full-year revenues rose +16.6% to $908.7 million, while expenses rose +11.9% to $776.4 million. Operating income was $132.3 million, up +54.8% from 2011.
(WJE)’s ancillary revenues, which have grown every month since April 2012, increased +40.3% year-over-year in the fourth quarter and +29.3% in 2012, increases it partly attributed to its carry-on bag fee.
Total scheduled traffic for 2012 rose +15.5% to 6.5 billion (RPM)s, on a +17.6% increase in capacity to 7.5 billion (ASM)s, producing a load factor of 87% LF, down -1.6 points compared to 2011. (RASM) was 12.14 cents, down -0.8%. (CASM) was 10.37 cents, down -4.9%, while (CASM) ex-fuel, fell -6.7% to 5.32 cents.
February 2013: Allegiant Air (WJE) added Reno, Nevada (RNO) to its offering from Las Vegas (LAS) on 1 February, making it the 44th destination it serves from the city. Twice-weekly frequencies are offered on the intra-state route using MD-80s. Competition comes from Southwest (SWA)’s 42 weekly flights.
Allegiant Air (WJE) inaugurated services on three new routes from Honolulu (HNL). On 8 February, (WJE) launched thrice-weekly flights to Phoenix-Mesa, Arizona (AZA) and a single weekly flight to Spokane, Washigton (GEG). On the following day, Boise, Idaho (BOI) was connected to Honolulu, also with single weekly flights. All services are operated using (WJE)’s fleet of 757s.
March 2013: Allegiant Air (WJE) inaugurated low-frequency services on the 2,100 km route from Punta Gorda, Florida (PGD) to Plattsburgh, New York (PBG) on 23 February. Twice-weekly flights are operated on the route using (WJE)’s fleet of MD-80s. (WJE) now operates to a total of 11 destinations from the Florida airport, up from only three in March 2012.
April 2013: SEE ATTACHED - "WJE-2013-04 - UPDATE."
The Allegiant Travel Company, parent of Allegiant Air (WJE), reported first-quarter net income of +$31.9 million, up +47.1% compared to +$21.7 million in the year-ago period.
Total operating revenue was $273 million, up +14.8% year-over-year, while expenses climbed +9.5% to $220.6 million, producing an operating income of +$52.37 million, up +44.2% from $36.3 million in the year-ago quarter.
Chairman & (CEO), Maurice Gallagher noted it was (WJE)’s 41st consecutive profitable quarter.
(WJE) said during the quarter it added eight routes, including two new routes to Provo, Utah and Reno, Nevada.
(WJE) is currently in a quandary over which airport in Cincinnati, Ohio it will begin operations out of. Thus far, Cincinnati Northern Kentucky International (CVG) and the smaller public airfield Cincinnati Municipal Lunken (LUK) are understood to have been in negotiations with (WJE) over a possible launch of flights. USA aviation analysts speculate that Lunken, established as a permanent airfield in 1925, could win the tug of war with its larger rival despite its aged facilities such as its tiny terminal, parking lot and lack of security checkpoints as in this time of economic hardship, it is reckoned that Lunken's lower landing fees will ultimately win over (WJE) in the long run. (CVG), however, has all the key infrastructure in place to lure (WJE) (security checkpoints, adequate parking and open gate space in the newly renovated Concourse A not to mention its marketing assistance schemes). Should Lunken land the deal with (WJE) with a possible twice weekly Orlando Sanford International (SFB) flight, it would be the airport's first scheduled service since 1963, excepting a short-lived attempt by the now defunct Midway Airlines (MID). Public charter operator, Ultimate Air Shuttle (Cincinnati Municipal Lunken (LUK)) currently offers services from a private terminal at Lunken to Charlotte Douglas International (CLT), Chicago Midway International (MDW) and Morristown Municipal (MMU).
(WJE) will from August 14, suspend flights to Honolulu International (HNL) from Boise Gowen (BOI), Eugene Mahlon Sweet (EUG), Phoenix Williams Gateway (AZA), Spokane International (GEG), Fresno Yosemite International (FAT), Stockton Metropolitan (SCK) and Santa Maria Captain G Allan Hancock Public (SMX) owing to a drop in seasonal demand. The suspension will affect neither the (WJE)'s Honolulu and Kahului (OGG) to Bellingham International (BLI) routes nor its Honolulu to Las Vegas McCarran International (LAS) service. (WJE) entered the Island market in June 2012 with flights from Las Vegas and Fresno to Honolulu before quickly adding eight more West Coast cities to its Hawaii service.
(WJE) currently operates domestic operations, with 88 destinations and 198 routes served.
Scheduled traffic during the quarter rose +15.4% to 1.88 billion (RPM)s on a +17% increase in capacity to 2.09 billion (ASM)s, producing a load factor of 89.8% LF, down -1.3 points compared to the first quarter of 2012. Yield lowered -3.5% to 9.58 cents.
(WJE) will begin 2X-weekly, Greensboro - Fort Lauderdale service on June 6.1
May 2013: The Allegiant Travel Company is to buy one used A319.
June 2013: The Allegiant Travel Company announced the retirement of Senior VP Operations, Kris Bauer, effective September 1. No replacement has been named. In his three-year tenure, Bauer developed a team to complete the 166-seat conversion of Allegiant (WJE)’s MD-80 fleet, obtained Extended Twin-engine OPerationS (ETOPS) certification, allowing the company to open up new markets in Hawaii, brought both the 757 and A320 airplane family onto (WJE)’s air operating certificate (AOC), and introduced the airplane types into (WJE)’s operation. (WJE) has retained an international executive search firm to identify a replacement.
A320-214 (1255, N219NV), ex-(EC-HSF) delivery.
July 2013: Allegiant Travel Company, parent of Allegiant Air (WJE), reported second-quarter net income of +$25.8 million, up +2.3% compared to +$25.2 million in the 2012 second quarter.
August 2013: Allegiant Air (WJE) has announced the launch of scheduled services from Orlando Sanford to Concord and Portsmouth as part of a role out of 18 new routes. The new routes, which launch on October 25 to Portsmouth, New Hampshire and December 20 to Concord, North Carolina, mark the first newly scheduled flights to both airfields, which at present are predominantly used by general aviation traffic.
According to FAPA.aero, there has been no report from Allegiant Air (WJE), but pilots (FC) have reported (WJE) is interviewing. (WJE) is recruiting pilot (FC) Instructors. (WJE) is acquiring A319s and A320s (FC)s, with about 10 before the end of 2013. According to line pilot (FC) representatives, (WJE) has announced a new hire class of 12. Calls will go out this month and the candidates will be assigned for the MD-80 airplanes. The most junior bases are in Florida and new hires can expect Sanford. Transition training for Airbus airplanes is continuous for the remainder of 2013 and has gone Junior for First Officers (FC).
September 2013: Allegiant Air (WJE) has added a 290 km city pair between Oakland (OAK) and Reno-Tahoe (RNO). The new operation is scheduled twice-weekly (Friday and Sunday) using (WJE)’s venerable MD-80s. (WJE) now serves a total of five routes from Oakland, the others being Bellingham (Washington), Eugene (Oregon), Phoenix-Mesa (Arizona) and Provo (Utah). It is also (WJE)’s third route from Reno, as it already serves Bellingham and Las Vegas. Last year, Oakland Airport handled just over >10 million passengers, while Reno-Tahoe Airport handled almost 3.5 million.
A new study found that Alaska Airlines (ASA) is the most fuel efficient airline in the United States. Using data reported gathered from the 2010 fuel-consumption reports submitted to the USA Bureau of Transportation Statistics, a study conducted by the International Council of Transportation (ICCT) found that (ASA) is able to travel the furthest on a gallon of jet fuel. (ASA) was the first USA carrier to train its pilots (FC) to fly (GPS)-guided required navigation performance (RNP) procedures in 1996, and was the first airline in 2009 approved by the (FAA) to conduct its own (RNP) flight validations.
The (ICCT) examined the fuel efficiency of the 15 largest airlines operating in the USA, and issued a fuel efficiency score based on the airline industry's average fuel economy within a given year. Spirit Airlines (SPR) and Hawaiian Airlines (HWI) tied for second on the list, trailed by Continental (CAL) and Southwest (SWA), all of which were separated by 2% or less on (ICCT)'s efficiency scale.
Low cost carrier (LCC) Allegiant Air (WJE) finished last, with a fuel efficiency rate 26 lower than Alaska (ASA)'s, which is attributable to the airline's fleet including aging McDonnell Douglas airplanes.
Allegiant Air (WJE) announced it will immediately pull nearly half its fleet out of service to re-inspect the emergency slides on its MD-80 airplanes. The company announced “it has discovered a compliance issue which will require immediate re-inspection of many slides in its MD-80 fleet.” No further details on the exact nature of the problematic issue were released.
(WJE) has already begun inspections and predicts completion of the process by the end of September. “Allegiant (WJE) will take as many as 30 MD-80s out of service and delay, reschedule or cancel a number of flights over the next several days.”
As of March, (WJE)’s operating fleet consists of 58 MD-80s, six 757-200 airplanes and one A319. The company has agreements to acquire eight additional A319s and nine A320s, due for introduction later this year and into early 2014.
The MD-80s in (WJE)’s fleet range in age from 16.9 to 27.4 years old; their average age is 23.3 years.
Allegiant (WJE) President, Andrew Levy issued an apology to (WJE)’s passengers, asking for their patience “as we work to correct the issue, reschedule affected flights and accommodate any passengers impacted.”
(WJE) expects to need at least another week before its flight schedule is disruption-free and its entire MD-80 fleet is available as it works to get the model’s evacuation slides in compliance with manufacturer recommendations. (WJE) last week discovered it did not incorporate a 2007 Maintenance Program change by slide maker Zodiac that called for slides older than 15 years to be overhauled on an annual basis, as opposed to every three years. The discovery came following a September 16 incident at Las Vegas when a departing flight was evacuated due to smoke in the cabin.
All four slides performed as expected, and had been inspected within the last year. However, (WJE) and the (FAA) discovered that many older MD-80 slides in the carrier’s fleet were not being checked annually. “The review of that event is how our maintenance team came to be aware of this discrepancy of our procedures and the procedures recommended by the manufacturer,” (WJE) spokesman, Brian Davis said. “This was a disconnect between the manufacturer’s expectations and our Maintenance Program's expectations,” he said.
The challenge forced the airline to ground about 30 of its 52-airplane MD-80 fleet and pull non-compliant slides. The slides are being shipped out for overhaul (a process that takes about five days, including transit time).
Because of the days (long turn time on the slide overhauls, (WJE) has been pooling compliant slides from around its system and installing them on airplanes to keep them in service. It also is purchasing and installing any available slides it can find.
Thus far, none of the non-compliant slides checked have turned up any operational or safety issues, Davis said.
In the meantime, (WJE) has been scrambling to keep its operations going. It had 49 MD-80s in service and three in scheduled heavy maintenance visits when the groundings started. It has been steadily putting planes back into service since then as compliant slides are found or become available. Dozens of flights have been delayed, rescheduled, or canceled since. The carrier, which operates about 120 flights per day, expects at least some additional schedule interruptions throughout the week.
Late last week, (WJE), which also operates six Boeing 757 and three Airbus A319s, chartered seven airplanes "from a number of different carriers" to provide additional lift, Davis said.
(WJE) is planning to introduce its first of six ex-Iberia (IBE) A320-200s into service from November 1. The fleet will initially be based at both Orlando Sanford and St Petersburg/Clearwater with the type's maiden flight, Orlando Sanford to Grand Forks, North Dakota, scheduled for the morning of November 1.
October 2013: The Allegiant Travel Company, parent of Allegiant Air (WJE), is reporting a third-quarter net income of +$17.1 million, up +1% compared to +$16.9 million in the year-ago period.
(WJE) launched a new non-stop route on September 26 from one of its focus cities, Los Angeles (LAX), to Provo, Utah (PVU). The 915 km sector is scheduled to be flown twice-weekly with no competition using MD-80s. Allegiant (WJE) is still the only carrier serving Provo Municipal Airport in Utah, from where it also serves Oakland and Phoenix/Mesa.
(WJE) is looking at expanding its route network by starting a scheduled service to Canada in the 4th quarter of 2014. Initial routes are expected to be smaller cities in Atlantic Canada and also the western regions from Florida. Potential airports are likely to be Moncton, Halifax and St John's. (WJE) said that there is a demand to bring travellers from these smaller cities to warmer climes in Florida where it currently has major bases in Fort Lauderdale International, Orlando Sanford, Punta Gorda, Florida and St Petersburg/Clearwater. (WJE) is also preparing to launch its first international service to Mexico in June 2014; (WJE) has applied for route approval to launch operations between Las Vegas McCarran and San José Cabo.
Allegiant Air (WJE) further expanded its presence in Orlando Sanford (SFB) in Florida, as it launched two domestic services from the airport on October 25th. A twice-weekly schedule is now offered to Portsmouth (PSM) and Tulsa (TUL), two destinations that previously were not in Orlando Sanford Airport’s network. (WJE) is the sole operator on both new routes, which it serves using MD-80s.
Due to the high demand in air services between St Cloud, Minnesota and Phoenix-Mesa, Arizona, (WJE) will add a third daily flight between the two from February 12th, 2014. (WJE) will also start a seasonal service to Orlando-Sanford Airport beginning in December and running through to April.
Allegiant Travel Company President, Andrew Levy has been elected to the board of directors and appointed as (COO), in addition to his current role as President.
November 2013: Allegiant Air (WJE) increased its domestic offering in the USA with 12 new routes. Half of those were launched from Punta Gorda, Florida (PGD), three from St Petersburg/Clearwater (PIE), while the remaining three are from Los Angeles (LAX), Las Vegas (LAS) and Phoenix-Mesa (AZA). All newly launched services are operated with low frequencies and Allegiant Air (WJE) faces competition only on the routes from Los Angeles and Las Vegas.
Los Angeles (LAX) to Honolulu 3x weekly, using 757s vs United Airlines (UAL) 29x weekly, American Airlines 26x weekly, Delta Air Lines 21x weekly & Hawaiian Airlines (HWI) 21x weekly; Las Vegas (LAS) to Austin (AUS) 4x weekly MD-80s vs Southwest Airlines (SWA) 21x weekly; Phoenix-Mesa (AZA) to Fort Wayne (FWA) 2x weekly MD-80s; Punta Gorda, Florida (PGD) to Bangor (BGR) 2x weekly MD-80s; to Youngstown (YNG) 2x weekly MD-80s; to Allentown (ABE) 2x weekly MD-80s; to Springfield-Branson (SGF) 2x weekly; to Moline (MLI) 2x weekly MD-80s; to Ashville (AVL) 2x weekly MD-80s; St Petersburg/Clearwater (PIE) to Stewart (SWF) 2x weekly MD-80s, to Elmira (ELM) 2x weekly MD-80s; and to Sioux Falls (FDS), 2x weekly, MD-80s.
(WJE) expects to start its first international flights to Mexico around a year from now, later than what it previously indicated. "We expect to do that next year, around this time," said (WJE)'s President, Andrew Levy. (WJE) had previously indicated it could launch flights in mid-2014, but Levy said the flights will begin around the winter peak period. "We are very excited about the opportunities we see down there," said Levy, citing Cancun as an example of a large leisure destination (WJE) hopes to target.
Allegiant (WJE) has already applied to launch flights between Las Vegas and Hermosillo and San Jose del Cabo.
(WJE) addeded two domestic routes to its offering on November 7th. Manhattan, Kansas (MHK), which is now served from Phoenix-Mesa (AZA), became (WJE)’s 99th destination; (WJE) also commenced services on the 1,800 km route from St Petersburg/Clearwater, Florioda (PIE) to Syracuse, New York (SYR). Both routes are offered with twice-weekly frequencies and operated using (WJE)’s stalwart MD-80s.
(WJE) added five domestic routes to its offering at the end of this month, all using its 166-seat MD-80s. With the longest sector being the 2,620 km service from Orlando Sanford, Florida (SFB) to Bismarck, North Dakota (BIS), and the shortest being again from (WJE)’s Florida hub, but this time to Charlottesville, Virginia (CHO) at 1,070 km, (WJE) faces no direct competition on any of the five new services. Routes are as follows: Orlando Sanford (SFB) to Charlottesville (CHO); to Springfield Illinois (SPI), and Bismark (BIS); and St Petersburg/Clearwater, Florida (PIE) to Columbus Ohio (LCK); and to Fargo, North Dakota (FAR), all flights 2x weekly.
December 2013: Allegiant (WJE) began 2x-weekly, Oklahoma City - Orlando service. (WJE) begins 2x-weekly, Bismarck (BIS) - Orlando (SFB) service.
January 2014: Las Vegas-based, Allegiant Travel Company, parent of Allegiant Air (WJE), reported 2013 net income of +$91.8 million, up +17% from +$78.4 million in 2012. Full-year revenue rose +9.6% to $996.2 million, while expenses increased +8.4% to $841.4 million, producing an operating income of $154.8 million, up +17% year-over-year.
(WJE) Chairman & (CEO), Maurice Gallagher said, “This is the second consecutive year that we have grown both full year (EBITDA) and operating margin. As we continue to add more efficient Airbus airplanes to our operating fleet, we have the opportunity to continue margin improvement going forward.”
Fourth-quarter net income was +$17.3 million, up +17.9% from +$14.6 million in the year-ago quarter. Revenue for the quarter was up +7% to $238.5 million, while expenses were increased +5.4% to $208.2 million, producing an operating income of +$30.3 million, up +19.3% over the year-ago quarter.
Total system traffic for 2013 rose +9.4% to 7.2 billion (RPM)s, on a +8.8% rise in capacity to 8.2 billion (ASM)s, producing a load factor of 87.5% LF, up +0.5 point.
(WJE) said it ended 2013 with three A319 and five A320 airplanes in service. It added two more A320s in January.
In 2013, (WJE) retired five MD-80 airplanes and completed the conversion of 51 MD-80 airplanes to 166Y seats. “We will add two more MD-80 airplanes configured with 166Y seats to the fleet in March 2014. We expect our MD-80 fleet to remain at 53 airplanes for the foreseeable future.”
Allegiant Air (WJE) recently added seven domestic routes to its offering, all served twice-weekly utilizing a mixed fleet of 166Y-seat MD-80s and 177Y-seat A320s. With the longest sector being the 2,184 km service from Orlando Sanford (SFB) to St Cloud, Minnesota (STC), and the shortest being inaugurated from Montrose, Colorado (MTJ) to Phoenix-Mesa, Arizona (AZA) at 680 km, Allegiant (WJE) faces direct competition only on the 1,072 km sector to Los Angeles (LAX), from United Airlines (UAL)’s twice-weekly flights. Commenting on the launch of the service to Des Moines (DSM), Don Smithey, the airport’s Executive Director, said: “Des Moines passengers are excited and looking forward to the nonstop Punta Gorda, Florida service by Allegiant (WJE). This popular market has been underserved, and the Des Moines Airport Authority warmly welcomes this new addition from Allegiant (WJE).”
February 2014: Route Network Update for Allegiant Air (WJE):
Allegiant Air ((IATA) Code: G4, based at Las Vegas McCarran) (WJE) network changes:
Las Vegas McCarran - Plattsburgh International route will be terminated on March 17, 2014.
Plattsburgh International - Las Vegas McCarran route will be terminated on March 17, 2014.
April 2014: The Allegiant Travel Company, parent of Allegiant Air (WJE), reported first-quarter net income of +$34 million, up +7% from +$31.8 million in the year-ago quarter.
Total operating revenue was up +10.8% to $302.5 million, while expenses climbed +11.2% to $245.3 million, producing an operating income of $57.3 million, up +9.4% year-over-year.
Chairman & (CEO), Maurice Gallagher said that “significant operational challenges and unusually high one-time costs impacted overall financial performance. This was a very difficult operational quarter, as (WJE) navigated through significant flight crew (FC) availability issues stemming from external factors that occurred last year.”
Scheduled traffic during the quarter rose +9.6% to 2.06 billion (RPM)s on a +11.3% increase in capacity to 2.33 billion (ASM)s, producing a load factor of 88.5% LF, down -1.3 points compared to the first quarter of 2013. Yield rose +3.1% to 9.88 cents.
During the first quarter, (WJE) integrated Airbus A320 airplanes into scheduled operations, ending the quarter with three A319s and seven A320s. (WJE) also integrated two McDonnell Douglas MD-80 airplanes configured with 166Y seats to the fleet in March, ending the quarter with 53 166Y-seat MD-80s. (WJE) also completed the reconfiguration of its Boeing 757 fleet from 223Y seats to 215Y seats and added six “Giant Seats” per airplane.
For the second consecutive month, after 15 months of reported declines, full-time equivalent (FTE) employment at USA scheduled passenger airlines has registered a monthly increase year-over-year.
In February, USA scheduled passenger airlines employed 381,985 full-time workers, up +0.4% year-over-year, according to figures from the USA Department of Transportation’s Bureau of Transportation Statistics (BTS).
It was the third consecutive month in which full-time equivalent (FTE) jobs at USA scheduled passenger airlines increased year-over-year. The February total registers +1,571 more (FTE) jobs among USA scheduled passenger carriers than in February 2013.
Among the USA major/network carriers, year-over-year increases in February (FTE) jobs were seen at US Airways (AMW)/(USA) (up +3.6%), Alaska Airlines (ASA) (up +2.7%), American Airlines (AAL) (up +0.4%) and Delta Air Lines (DAL) (up +0.2%). United Airlines (UAL) reported losing -1.8% of its (FTE) positions year-over-year. Overall, the USA major/network carriers saw a +0.1% year-over-year increase in February (FTE) employees.
Hawaiian Airlines (HWI), a major carrier classified by (BTS) as an “other carrier” (airlines that operate within specific niche markets) reported a year-over-year February increase of +332 (FTE) positions, up +7.5%.
Overall, (FTE) positions at the major USA low-cost-carriers (LCCs) grew +0.7% year-over-year in February. Spirit Airlines (SPR) had the largest concentration of year-over-year growth, expanding its February (FTE) job count by +16.8%, to 3,534 (FTE) employees; Allegiant Air (WJE)’s monthly (FTE) job count grew as well, up +14.3% from February 2013, to 2,134 (FTE) employees. Increases also occurred at Virgin America (VUS) (up +6.7%) and JetBlue Airways (JBL) (up +4.9%). February (FTE) job declines were seen at Frontier Airlines (FRO) (down -7.4%) and Southwest Airlines (SWA) (down -1.7%).
Sun Country Airlines (SCA), a national carrier/(LCC) classified by (BTS) as an “other carrier,” registered a year-over-year February increase of +169 (FTE) positions, up +17.4%.
Ranked by (FTE) workforce, the top 10 passenger airlines for February were: United Airlines (UAL) (80,694 (FTE) employees), Delta Air Lines (DAL) (73,602), American Airlines (AAL) (59,699) (less US Airways (AMW)/(USA) - see later, Southwest (SWA) (45,091), US Airways (AMW)/(USA) (31,604), JetBlue Airways (JBL) (13,301), and Alaska Airlines (ASA) (10,192).
May 2014: Allegiant Air (WJE) has added four more domestic routes to its network, including two from its Phoenix-Mesa, Arizona (AZA) base (to Colorado Springs, Colorado (COS), 2x, and to Stockton, California (SCK), 2x). One of the other new services is (WJE)’s first route to West Palm Beach, Florida (PBI), served from Asheville, North Carolina (AVL), 2x weekly with (WJE)’s A320s, and the other is St Pete-Clearwater, Florida to Cincinnati, Ohio, 2x.
June 2014: Allegiant Air (WJE) has launched six new routes from its focus city at Los Angeles (LAX). Three of the six destinations are in the state of Montana. All routes will be operated just twice-weekly using (WJE)’s trusty MD-80s, and none will face any direct competition. This summer, (WJE) will serve a total of 20 destinations with 50 weekly departures from Los Angeles.
Allegiant Air (WJE) has painted its A320-214 (1229, N218NV), in a co-branded livery commemorating Allegiant (WJE)'s commitment to providing flights for "Make-A-Wish" families traveling to their dream destinations. This airplane (SEE PHOTO - - "WJE-A320-214-MAKE A WISH-2014-06" was unveiled during a ceremony at the Orlando-Sanford Intenational Airport (SFB/KSFB).
Allegiant Travel Company (WJE), parent of “ultra” low-cost carrier (ULCC) Allegiant Air (WJE), said it has agreed to purchase 13 Airbus A319s for its fleet growth, including 12 that are currently leased to an unidentified European carrier until 2018.
(WJE) said the “purchase transaction [for the 12 A319s leased to the European airline] is expected to be completed by the end of June,” adding, “As each airplane lease expires, Allegiant (WJE) will transition the airplanes into its operating fleet.” (WJE) also plans to purchase one more A319, as well as one A320, “in 2015 and 2016 upon airplane delivery,” (WJE) said, not disclosing where the airplanes will be coming from.
(WJE) President & (CEO), Andrew Levy said (WJE) “will now have 32 Airbus [A320] series airplanes, all owned, in our fleet by the end of 2018. We expect to use debt financing along with cash reserves to purchase these airplanes. We remain active in the used Airbus market and hope to add more airplanes to our fleet during 2016 and 2017.”
Eight A320 family airplanes (WJE) has leased (two currently in its fleet and six more to be delivered starting later this year) will also be purchased, (WJE) said.
July 2014: Las Vegas-based Allegiant Travel Company, parent of Allegiant Air (wje), reported second-quarter net income of +$33.5 million, up +29.9% from $25.8 million in the year-ago quarter.
Total operating revenue was $290.5 million, up +13.6% year-over-year, while expenses rose +9.9% to $234.1 million, producing an operating profit of +$56.4 million, up +31.6% compared with the 2013 second quarter.
Allegiant Travel Company Chairman & (CEO), Maurice Gallagher said, “We have been working very hard to mitigate the crew training issues that have impacted the past two quarters. Although these issues did contribute to operational inefficiencies and incremental costs during this past quarter, we are trending in the right direction and hope these issues have minimal impact in the third quarter.”
Gallagher said in June the company “completed multiple airplane transactions to add +14 additional airplane to our future fleet and raise $300 million of debt in the high yield market with very competitive terms.”
Scheduled traffic during the quarter rose +7.4% to 2 billion (RPM)s on a +7.5% increase in capacity to 2.24 billion (ASM)s, producing a load factor of 89.5% LF that remained flat year-over-year.
Yield increased +6.5% to 9.45 cents.
August 2014: Allegiant Air (WJE) will add five new routes this fall to Florida, continuing its strategy of connecting smaller USA cities with popular vacation destinations.
One of the new routes (Belleville, Illinois to St Petersburg,-Clearwater International) will operate on Wednesdays and Saturdays, two days that until recently, (WJE) had scheduled relatively few flights. “We are seeing more opportunity in Florida on Wednesdays and Saturdays, and we are playing with the schedule a little more,” (WJE) spokeswoman, Jessica Wheeler said. “You are still going to see way more flights on Thursday and Friday than Wednesday or Saturday, but those are the margins of the utilization, that we have been pushing to with the Airbus (EDS) fleet.” She said Florida travelers tend to be more flexible about departure dates, than other Allegiant (WJE) passengers.
In addition to the Belleville route, (WJE) will begin flying in November between Bloomington, Illinois and Concord, North Carolina and St Petersburg. (WJE) will also add flights from Peoria, Illinois to Orlando Sanford International and Huntington, West Virginia to Punta Gorda Airport. As is (WJE)’s typical model, the flights will operate between 2x- and 3x-weekly.
Allegiant Air (WJE) plans to add international service for the first time as early as next year, starting with flights to Mexico, according to (WJE) President & (COO) Andrew Levy.
Allegiant (WJE) is slowing, adding to its Airbus A320 family fleet, with plans to add a single 156-seat A319s by year end, according to its most recent fleet plan. Next year, (WJE) plans to add five A319s and three 177-seat A320s, which would bring its fleet to 78 airplanes.
Currently, Boeing MD-80s make up the majority of the fleet, with 53 in service. In additional to the MD-80s, (WJE) now has an additional six 757s, and 10 A320 family airplanes.
Asked how (WJE) chose the Florida cities, Jessica called it, “a little bit art and a little bit science,” with (WJE) combining its own data with information from tourist boards and airports to determine the strength of each market. But she said Allegiant (WJE) often avoids revenue guarantees from local authorities. “We feel like it inflates the market a little bit,” Wheeler said. “It’s not a true representation of whether or not service is going to be successful. We really want to serve routes that are going to be successful long term, because they have natural high demand.”
September 2014: Allegiant Travel Company has announced that President & (COO), Andrew Levy has resigned from his executive positions with the company and will step down from the Allegiant board.
Levy has led Allegiant (WJE) in a variety of roles for 13 years, including most recently as President, (COO) and board member. He was previously Managing Director and (CFO). During his tenure, (WJE) has grown from a single airplane company to a billion dollar leader in the leisure travel space that has posted 46 consecutive profitable quarters.
(WJE) Chairman & (CEO), Maurice Gallagher said, “Andrew and I have been shoulder to shoulder at Allegiant (WJE) since its earliest days. He has been tremendously valuable in building the company to where it is today. “I thank him for his contributions. I know I speak for many when I say he will be missed.”
(WJE) said that Gallagher and the executive team will temporarily assume his duties while (WJE), in conjunction with its board of directors, identifies a successor. Levy will continue to serve as an advisor to the company for the next several months.
“This is a decision I considered carefully and feel confident there is tremendous momentum for the initiatives I’ve championed. I have no doubt Allegiant (WJE) will not skip a beat due to the outstanding management team that remains intact, led by Maury,” Levy said, adding that “it is time for me to pursue more entrepreneurial opportunities. I am excited about the future. (WJE)'s future is also very bright and I feel confident I am leaving at a time when (WJE) is strong, healthy and poised for ongoing growth.”
Allegiant (WJE) said that “all unvested equity incentive options and restricted stock will immediately vest, thus impacting stock compensation expense during the third quarter. The company will update its cost guidance in the upcoming September traffic release."
“(WJE)’s ability to produce strong financial results, successfully balance capital allocation opportunities for company growth and shareholder returns has long been viewed as positive by the investment community,” Levy said. “I continue to hold a large investment in (WJE), which I look forward to continuing into the future.”
November 2014: News Item A-1: In a slight strategy shift, Allegiant Air (WJE) announced 14 new routes on November 12th, nearly all of which are designed to take travelers from midsize USA cities to popular vacation destinations.
Las Vegas-based, Allegiant (WJE) will add +5 new cities to its network (Pittsburgh, Pennsylvania; Indianapolis, Indiana; Jacksonville, Florida; Richmond, Virginia; and Omaha, Nebraska). All are considerably larger than the tiny markets (WJE) has made a fortune serving, which include Bismarck, North Dakota; Grand Island, Nebraska; and Casper, Wyoming.
In a presentation earlier this month to investors, (WJE) said small cities “are still core” to (WJE). But it acknowledged that medium-sized markets, especially former legacy airline hubs, tend to “mature and grow quicker than smaller cities.”
Regardless of market size, (WJE)'s strategy remains the same as in the past. The new routes will transport passengers from what Allegiant (WJE) believes are underserved markets and deliver them to Florida and Las Vegas. The five Florida airports that will see increased service are St Pete-Clearwater International Airport, Orlando Sanford International Airport, Punta Gorda Airport, Fort Lauderdale-Hollywood International Airport and Jacksonville International Airport.
The biggest route increase comes at St Petersburg, where (WJE) is adding service from Omaha, Pittsburgh, Indianapolis, Richmond, and Hagerstown, Maryland. Other new routes include flights from Indianapolis and Pittsburgh to Punta Gorda, and flights from Indianapolis and Austin, Texas to Orlando, Florida.
As is (WJE)’s usual strategy, most routes will be served between 2x- and 4x-weekly. The new routes begin in February and March.
Allegiant (WJE) has been growing capacity at a higher rate than most USA carriers. It is predicting a +9% to +11% increase in (ASM)s in the fourth quarter, though it plans to taper in the first quarter of next year. (WJE) told investors last week it is planning 0% to +4% (ASM) growth in early 2015.
In 2015, (WJE) plans to add three used Airbus A320s and five used A319s to its fleet. It expects to finish the year with 78 airplanes, up +8 from 2014, according to a presentation to investors.
News Item A-2: Allegiant Air (WJE), which during the course of last week expanded its seasonal offering with three routes, has further commenced two new seasonal services from St Pete-Clearwater, Florida (PIE), both of which are operated twice-weekly until May 4th by its 166Y-seat MD-80s. On November 19th, (WJE) introduced operations (Wednesdays and Saturdays) on the 1,352 km sector to Belleville, Illinois (BLV). Furthermore, on November 21st, (WJE) added flights (Mondays and Fridays) to Bloomington, Illinois (BMI). No other airline flies either of these two routes.
December 2014: Allegiant Air (WJE) has elected former IndiGo Airlines (IGO) (COO), Steve Harfst as its (COO), effective January 1, 2015.
February 2015: News Item A-1: Allegiant Travel Company, parent of Allegiant Air (WJE), posted 2014 net income of +$86.7 million, down -6.1% from a net profit of +$92.3 million in 2013.
The ultra-low cost carrier (ULCC) specializing in flights from smaller USA cities to USA vacation destinations has now been profitable for every quarter for 12 consecutive years. But a $43.3 million charge taken in the 2014 fourth quarter for the write down on the value of Allegiant (WJE)’s fleet of six Boeing 757s almost broke the company’s streak of 48 quarters in a row in the black: the December quarter net profit was just +$4.8 million, down -72.6%. (WJE) blamed the full-year and fourth-quarter profit declines on the 757 write down, noting that net profit for the quarter and year would have improved, absent the one-time charge.
(WJE)’s 2014 revenue was $1.14 billion, up +14.1% year-over-year, while expenses rose +16.4% to $979.7 million, producing operating income of +$157.4 million, up +1.7% from an operating profit of +$154.7 million in 2013. (WJE)’s 2014 traffic increased +9.8% to 7.83 billion (RPM)s on a +9.8% rise in capacity to 8.95 billion (ASM)s, producing a load factor of 87.5% LF, the same as 2013.
(WJE) Chairman & (CEO), Maurice Gallagher told analysts he was pleased with the 2014 results, but acknowledged that the company needs to improve in some basic areas. “Frankly, we don’t answer our calls as fast as we’d like,” he said, noting that carriers such as Southwest Airlines (SWA) make it a priority to rapidly respond to consumer issues. In terms of (WJE)’s place in the USA airline industry landscape, “we’re still in short pants and trying to become the adult,” Gallagher said. “We’ll get a lot of these things cleaned up around the edges.”
(WJE) also appears to have put on hold plans to start international flying. Former President & (COO), Andrew Levy had said (WJE) was eyeing flights to Mexico as early as this year, but Gallagher last week sounded less enthusiastic about flying beyond the USA. “The low hanging fruit is certainly domestic [expansion],” he said. “It’s just easier operationally. As long as we can keep growing in this market, we don’t feel like we’re missing anything south of the border or in the Caribbean.”
News Item A-2: Allegiant Air (WGE) touched down in New Orleans (MSY) for the first time with the launch of four routes. Firstly, (WGE) introduced twice-weekly flights on the 1,127 km sector to Cincinnati (CVG) on February 4th, a route served until May 5th. (WJE) then commenced flights to Columbus (LCK), Indianapolis (IND), and Orlando Sanford (SFB), all of which are served by (WJE)’s 166Y-seat MD-80s. There is no other airline serving these airport pairs.
New Orleans (MSY) to Cincinnati (CVG) A320 2x weekly;
(MSY) to Columbus Ohio (LCK) to Indianapolis (IND); to Orlando Sanford (SFB), all MD-80, 2x.
(WJE), which during the course of the previous week touched down at New Orleans with four routes, continued to expand its domestic network with the addition of 10 new seasonal services launched between February 11 - 13th. With the longest sector being 1,925-km route from Fort Lauderdale (FLL) to Syracuse (SYR) launched on February 13th; and the shortest being inaugurated on February 12th from Jacksonville (JAX) to Cincinnati (CVG) at 988 km, Allegiant (WJE) will face no competition on any of the new additions. Interestingly, the average weekly frequency across the 10 new routes is three.
News Item A-3: Allegiant Travel Company has agreed to purchase four Airbus A320s, to be added to the Allegiant Air (WJE) fleet in the second half of 2017. “We are active in the used Airbus A320 market and will engage in transactions that make economic sense for the company. These airplanes will help us maintain our desired growth rate into 2017 and provide us with additional high-quality A320 airplanes,” (WJE) Senior VP Planning, Jude Bricker said. “It is also another demonstration of our ability to grow the fleet, while still providing returns to shareholders such as our recently announced $0.25 per share recurring quarterly cash dividend and the $86 million remaining in our share repurchase authority,” he said.
Although (WJE) posted a 2014 net profit of +$86.7 million, this was down -6.1% from the +$92.3 million posted in 2013. Its fourth quarter net profit was down -72.6% to $4.8 million. (WJE) blames the full-year and fourth-quarter profit numbers on the write-down of six Boeing 757s in the quarter, a one-time charge for the Las Vegas-based company.
Allegiant Travel Company, parent of Allegiant Air (WJE), has agreed to purchase six additional Airbus A319 airplanes, as part of a plan to increase its A320 family fleet from 14 to 44 by the end of 2018.
The airplanes are currently being operated by Cebu Pacific Air (CEB) and are scheduled to enter the (WJE) operating fleet from the end of 2015 through 2017. “We continue to be able to find high quality, used A319s that fit our specification,” (WJE) Senior VP Planning, Jude Bricker said. “These airplanes will have 156 seats which is similar to our current A319s. Including these airplanes, we have added commitments for ten additional A320 series airplanes so far this year and will remain active in the used A320 market,” he said.
Two of the airplanes will be purchased in 2015; the rest are expected to be purchased in 2016.
Cebu Pacific Air (CEB) says it has signed a forward sale agreement with (WJE) involving six A319-100s. "This agreement is in line with (CEB)'s efforts to continuously improve operational efficiency by replacing and upgrading our fleet with the larger, more fuel efficient, and longer range A321neo airplanes," Lance Gokongwei, (CEB) President & (CEO), said.
For its part, (WJE) operates seven A319s with thirteen additional jets, formerly with easyJet (EZY), set to be acquired in due course.
(WJE) currently flies five Airbus A319s and nine A320s, 47 McDonnell Douglas MD-83s and six MD-88s.
Later, the Allegiant Travel Company agreed to purchase two additional Airbus A320s, which are currently operated by Philippine Airlines (PAL). The used airplanes are scheduled to enter (Allegiant Air (WJE)'s operating fleet toward the end of 2015.
“We continue to be successful in finding high quality, used airplanes to support our future growth,” Allegiant Senior VP Planning Jude Bricker said. “These A320s will have 177 seats in the same configuration as our current A320s. As with our other airplane transactions, we are able to purchase these airplanes for cash. Our strong balance sheet allows us to both find airplanes to support future growth and return cash to shareholders through our previously announced recurring dividend and continuation of our existing share repurchase program,” Bricker said.
Including the two A319s that deliver in 2015 that were announced earlier, the company expects its 2015 capital expenditure to be approximately $230 million.
March 2015: News Item A-1: Allegiant Air (WJE) expanded its seasonal offering with two new routes launched on February 27th, both of which are operated until August 17th. Firstly, (WJE) introduced thrice-weekly flights on the 2,560 km sector from Las Vegas (LAS) to Indianapolis (IND), utilizing its 228-seat 757-200s. In addition, (WJE) started twice-weekly flights (Mondays and Fridays) between St Pete-Clearwater (PIE) to Hagerstown (HGR), using its 166Y-seat MD-80s. This route is not served by any other carrier, but Allegiant (WJE) will face direct competition on the link to Indianapolis from Southwest Airlines (SWA)’s 18 weekly departures.
(WJE) added a new domestic route from St Pete-Clearwater (PIE) to Omaha (OMA) on March 5th. The 1,912 km sector to the largest city in the state of Nebraska will be served twice-weekly (Thursdays and Sundays), utilizing (WJE)’s 166Y-seat MD-80s.
News Item A-2: Allegiant Air (WJE) began its 5th route from Columbus Rickenbacker (LCK) on March 13th, with 2x-weekly (Mondays and Fridays) flights from Fort Lauderdale (FLL) joining existing services to Orlando Sanford, St Pete-Clearwater, Punta Gorda and New Orleans. Operated by (WJE)’s 166Y-seat MD-80 fleet, the 1,547 km city pair faceS no direct competition.
News Item A-3: As it expands to larger cities, including Pittsburgh, Cincinnati, and Indianapolis, Allegiant Air (WJE) is trying to improve how it communicates its business model to customers to make it more “transparent.”
April 2015: News Item A-1: Allegiant Air (WJE) parent, the Allegiant Travel Company posted its 49th consecutive profitable quarter in the three months ended March 31, but the company’s labor dispute with its pilots (FC) has cast a shadow over its financial success.
The flight crew (FC), represented by the International Brotherhood of Teamsters, has been prevented from striking by a USA federal judge’s temporary restraining order. Both management and pilots (FC) are awaiting the judge’s ruling, expected within in the next couple of weeks, on Las Vegas-based, (WJE)’s request for an injunction that could prevent a pilots (FC)’s strike for a longer period.
The contentious labor dispute has included the pilots (FC) questioning (WJE)’s commitment to safety, and Chairman & (CEO), Maurice Gallagher said the (FAA) “has stepped up surveillance of our operations.” He said the (FAA)’s “heightened focus” is expected to continue until the pending litigation is resolved. Gallagher noted that (WJE) is “not aware of any findings” by the (FAA) related to the increased scrutiny.
Allegiant (WJE) nearly doubled net income in the first quarter, posting a net profit of +$64.9 million, up +89.5% over net income of +$34.2 million in the 2014 first quarter. Revenue rose +8.8% to $329.2 million, while expenses decreased -9.8% to $221.1 million, producing an operating profit of +$108.1 million, up +88.7% over operating income of +$57.3 million in the 2014 March quarter.
First-quarter traffic increased +5.3% year-over-year to 2.19 billion (RPM)s on a +6.1% rise in capacity to 2.53 billion (ASM)s, producing a load factor of 86.8% LF, up +0.6 points. Scheduled service yield decreased -6.2% to 9.27 cents.
News Item A-2: Allegiant Air (WJE) filed suit on March 30 against its pilot (FC) union in federal court in Nevada to prevent an “imminent strike among (WJE)’s pilots (FC),” which (WJE) fears would “have a significant impact on Allegiant (WJE) and its customers.”
Pilots (FC) at Allegiant Air (WJE) announced they planned to strike on April 2, even though they were not authorized to walk off the job by the National Mediation Board (NMB), a move that could ground more than >250 flights and affect 33,000 customers daily, while (WJE) had said a strike would cost millions of dollars a day, scare off customers and disrupt travel on the Easter holiday weekend.
Later, Allegiant Travel Company's airline won a court order blocking a pilots (FC)'s strike, thwarting what would have been the first walkout at a major USA carrier in almost five years. The decision was issued in federal court in Las Vegas. Members of Airline Professionals Association Teamsters Local 1224 had planned to strike saying (WJE) hadn't complied with a court decision to reverse a scheduling system change and restore other benefits.
"Allegiant (WJE) has every reason to believe that the Teamsters will honor the court's instructions and will not be able to continue with their illegal intention to strike," (WJE) said. All scheduled flights operated normally.
Earlier April 2nd, (WJE) shares fell -6.6% to US$179.65 in New York, its biggest one-day decline since July. The shares extended an earlier decline after pilots (FC) threatened to strike.
Allegiant (WJE) said in its complaint that the walkout was illegal because the union and the Las Vegas-based airline hadn't exhausted procedures to resolve their conflict. The dispute came to a head after more than >2 years of failed contract talks between the union and (WJE).
The pilots (FC) claimed the new scheduling system forced some (FC) to be routed away from home for extended periods and led to exhaustion. A federal court in Las Vegas previously found the change altered the status quo, in violation of the law governing negotiations, and ordered (WJE) to revert to the prior system, the union said.
The last pilot (FC) strike at a large USA carrier occurred when pilots (FC) at Spirit Airlines (SPR) walked off the job for five days in June 2010. Before that, the last work stoppage at a major USA airline operating on a regular schedule, involved Northwest Airlines (NWA) mechanics (MT) in 2005.
The federal Railway Labor Act, which governs airline unions, prohibits strikes during contract talks without authority from the National Mediation Board. That body hasn't ruled on the union's request at this time and has directed both sides to return to the bargaining table.
Allegiant (WJE) is a low-cost carrier (LCC) that primarily carries travelers from smaller cities to leisure destinations like Las Vegas and a number of cities in Florida.
News Item A-3: Allegiant Travel Company6 has purchased three used Airbus A320 airplanes, which were most recently operated by a carrier in Europe. They are scheduled to enter the Allegiant (WJE) operating fleet in 2015. (WJE) has committed to 15 incremental A320 series airplanes this year, which will be added to its future operating fleet.
May 2015: News Item A-1: Pilots (FC) at Allegiant Air (WJE) say they will appeal after a federal judge in Las Vegas issued a preliminary injunction that barred them from striking.
News Item A-2: Allegiant Air (WJE) continued to expand rapidly in the USA domestic market with the addition of six new routes all of which are operated twice-weekly by its 166Y-seat MD-80s. With the longest sector being the 1,543 km route from St Pete-Clearwater (PIE) to Tulsa (TUL), and the shortest being inaugurated from Orlando Sanford (SFB) to Raleigh-Durham (RDU), the (ULCC) will face no competition on any of the six new additions, five of which involve destinations in Florida. Raleigh-Durham in North Carolina is the newest airport to be added to (WJE)’s expanding network of cities served.
The routes are as follows:
Fort Lauderdale, FL (FLL) to Concord, NC (USA);
Orlando Sanford, FL (SFB), Punta Gorda, FL (PGD) and St Pete-Clearwater, FL (PIE) to Raleigh-Durham, NC (RDU;
Cincinnati, OH (CVG) to Savannah, GA (SAV);
(PIE) to Tulsa, OK (TUL).
A320-214 (1694, N224NV), ex-(EC-IEI), delivery.
June 2015: News Item A-1: "The (FAA) Proposes $266,375 Civil Penalty Against Allegiant Air (WJE)" by (ATW) Linda Blachly, June 2, 2015.
The (FAA) has proposed a $266,375 civil penalty against Las Vegas-based Allegiant Air (WJE) for allegedly violating drug and alcohol testing regulations.
The (FAA) alleges Allegiant (WJE) “failed to include in its random drug and alcohol testing pools 25 employees that it hired or transferred into safety sensitive positions. Eleven of these employees performed safety-sensitive duties on multiple occasions when they were not in the random pools,” according to an (FAA) statement.
The (FAA) said it also alleges another employee’s follow-up test was not directly observed after a previous positive drug test result as required by USA Department of Transportation (DOT) regulations. “That employee performed multiple safety-sensitive duties following the improperly observed test,” the (FAA) alleges.
Allegiant (WJE) VP Safety & Security, Eric Gust said in an emailed statement: “The safety of our passengers and crew is always our number one priority at Allegiant (WJE). We are currently reviewing all of the records and events associated with the (FAA) allegation; however, our initial assessment is that the safety of our operation was not compromised. We are confident that after further investigation and conference with the (FAA), we will be able to resolve all of the allegations to the satisfaction of the (FAA).”
(WJE) is scheduled to meet with the FAA in mid-June to discuss the case.
News Item A-2: Allegiant Air ((IATA) Code: G4, based at Las Vegas McCarran) (WJE)has threatened to leave Phoenix Williams Gateway airport in retaliation for what it claims are unfair incentives being offered to Elite Airways ((ICAO) Code: MNU, based at Portland, Maine). Last week, Elite announced it would begin a 3x weekly CRJ-700 service to San Diego International effective September 1.
According to the "AZ Central" newspaper, the airport's operator, the Phoenix-Mesa Gateway Airport Authority (PMGAA), awarded Elite a USD1.3 million incentive package that includes exemption from paying landing and terminal fees during the first six months, in return for starting flights to either San Diego or Salt Lake City.
However, Mesa's only scheduled operator, Allegiant (WJE), has reacted angrily to the announcement with reports it is now in talks with Phoenix's other airport, Phoenix Sky Harbor, to transfer its operations there.
"It's completely inappropriate," said Brian Davis, VP Marketing for Allegiant. "We don't mind competition ... what we do mind is subsidized competition."
(WJE) currently connects Mesa with 34 unique destinations located throughout the continental USA.
Local community leaders have expressed shock at Allegiant (WJE)'s plans to move claiming the incentive package was open to any operator that applied, not just Elite.
Allegiant (WJE) currently operates 81 airplanes and serves 104 destinations, on 264 routes and 78 daily flights.
July 2015: The Allegiant Travel Company, parent of Allegiant Air (WJE), reported second-quarter net income of +$54.3 million, up +62.8% from a +$33.3 million profit in the year-ago period. This is the ultra-low-cost carrier (ULCC)’s 50th consecutive profitable quarter. (WJE) said the results were due to maintaining low costs and flexibility to react to the market.
“During this [12-year streak] we have seen macro disruptions in our economy, including extremely high oil prices, significant financial disruptions and a recession. Throughout the years, our model of maintaining low costs and the flexibility to react to this constantly changing landscape has been critical to our long-term success,” Chairman & (CEO), Maurice Gallagher said.
Revenue rose +10.9% to $322 million, while expenses dipped -2.1% to $229 million, producing an operating profit of +$92.7 million, up +64.4% from a +$56.4 million operating profit in the prior-year quarter.
System traffic rose +13.6% to 2.3 billion (RPM)s on a +17.5% increase in capacity to 2.7 billion (ASM)s, producing a load factor of 85.7% LF, down -3 points.
(RASM) lowered -1.7% to 12.49 cents and (CASM) decreased -15.8% to 8.64 cents. (CASM) ex-fuel was 5.79 cents, up +1.8%.
In the first half, (WJE) was embroiled in a contentious labor dispute with its pilots (FC). In June, the USA Court of Appeals ruled in Allegiant (WJE)’s favor that the airline had the right to make changes in pilot (FC) work rules.
(WJE) flies five Airbus A319s and nine A320s, 47 McDonnell Douglas MD-83s and six MD-88s. It will add four A320s in the second half of 2017.
August 2015: News Item A-1: Allegiant Air (WJE) will start flying to San Antonio and Kansas City, Missouri, as part of a broader plan to add +17 new routes this fall.
News Item A-2: Allegiant Air (WJE) will base an A319-100 out of Pittsburgh International with effect from December 24 of this year. The move will create (WJE)'s thirteenth USA base and will create up to forty jobs locally. “We’re pleased to continue our growth in Greater Pittsburgh with the addition of nonstop service to Orlando and the establishment of a permanent aircraft base there,” said Jude Bricker, Allegiant Travel Company Senior VP Planning. “The establishment of a base of operations in Pittsburgh will further increase the efficiency of our operations and better position us for growth in the future.”
Ahead of the base's opening, (WJE) will expand its existing Pittsburgh operations (Jacksonville International, Florida; Myrtle Beach, Punta Gorda, Florida; and St Petersburg/Clearwater) to include Orlando Sanford from November 5, while charter flights to Cancún in Mexico and Punta Cana in the Dominican Republic will launch on behalf of Apple Vacations this autumn.
News Item A-3: The Allegiant Travel Company, parent of Allegiant Air (WJE), has ordered a used Airbus A320, the first directly ordered aircraft from Airbus (EDS). It will be powered by (CFM56) engines.
The order marks (WJE)’s 50th commitment to an Airbus A320 family aircraft.
Allegiant (WJE) owns a fleet of 34 A320 family aircraft. It has 17 (seven A319s and 10 A320s) in service; the balance are either pending service or leased out to other operators.
“By the end of 2016, (WJE) will be a majority Airbus (EDS) carrier as measured by available seat miles,” (WJE) Senior VP Planning, Jude Bricker said. “This is an exciting milestone for (WJE) having taken delivery of our first Airbus aircraft just in 2013.”
2 A320-214 (0706, N225NV; 0745, N226NV), deliveries.
October 2015: News Item A-1: Las Vegas-based, Allegiant Travel Company, parent of Allegiant Air (WJE), posted +$44.5 million in net profit for the third-quarter, tripling its 3rd quarter (3Q) 2014 result. The company had reported net income of +$14.1 million in the September 2014 quarter. It is the ultra-low-cost carrier (ULCC)’s 51st consecutive profitable quarter.
“[We continue] to benefit from lower energy costs and the profitable growth of our network,” Allegiant Travel Company Chairman & (CEO), Maurice Gallagher said. “[It is] our belief that that growth rates should not exceed the capabilities of our infrastructure. We are simplifying our operations where possible. Our eventual migration to an all-Airbus (EDS) fleet is the biggest step in this effort.”
Allegiant (WJE) has 74 in-service aircraft as of September 30, including 51 McDonnell Douglas MD-80s, 10 Airbus A320s, seven A319s and six Boeing 757s. By the end of the year, (WJE) expects to receive five additional A320s and three A319s.
(WJE)’s third-quarter revenue was up +13.2% year-over-year (YOY) to $300 million as expenses fell -5.6% (YOY) to $222.9 million. The company’s operating profit for the quarter was +$77.1 million, more than doubling its performance in the prior-year period. Allegiant (WJE)’s total ancillary revenue (for air-related charges and third-party products) for the quarter was $117.4 million, up +37.8% (YOY).
System traffic grew +19.7% (YOY) to 2.24 billion (RPM)s on a +23.3% (YOY) increase in capacity to 2.6 billion (ASM)s, producing a load factor of 86.1% LF, down -2.6 points (YOY).
(TRASM) on (WJE)’s scheduled service fell -8.2% (YOY) to 11.38 cents due to the impact of the increased September 11 fee and the implementation of a credit card surcharge, (WJE) said; (CASM) on Allegiant (WJE)’s total system dropped -23.5% (YOY) to 8.58 cents; the company’s operating (CASM) ex-fuel for the quarter was down -11.3% (YOY) to 5.95 cents.
News Item A-2: Allegiant Air (WJE) (CEO), Maury Gallagher said he is not surprised legacy carriers have been more aggressive in their pricing strategies recently, but suggested his airline is immune to competitive pressures because of its unique model.
November 2015: Four years after its first flight to Hawaii, Allegiant Air (WJE) will end its costly experiment, saying it will pull out of Honolulu in August 2016 and retire all of its Boeing 757s by 2017.
A320-214 (1467, N234NV), ex-(AP-EDD) delivery.
December 2015: News Item A-1: Allegiant Air (WJE) commenced services on five routes between December 16 and 18, with three of the services originating from Phoenix-Mesa (AZA), Arizona. All of the airport pairs launched by (WJE) will operate 2x-weekly on-board (WJE)'s fleet of MD83s. None of the new routes will face any incumbent carriers. The average sector length of the new services is 1,456 km.
Routes as follows:
Fort Lauderdale (FLL) to Grand Rapids (GRR), MD-83, 2x-weekly;
Phoenix-Mesa (AZA) to Frezno (FAT), to Memphis (MEM), to Des Moines (DSM);
Las Vegas (LAS) to Montrose (MTJ).
News Item A-2: Baggage fees revenues for USA airlines in (3Q) 2015 rose +6.2% year-over-year, to $1.02 billion, according to the USA Bureau of Transportation Statistics (BTS). It is the first time third-quarter baggage fee revenues have surpassed the $1 billion threshold.
In contrast, reservation cancellation/change fees revenues for the 11 major USA reporting airlines plus two other carriers (Sun Country Airlines (SCA) and Island Air Hawaii) were down -0.4% year-over-year (YOY), to $755.2 million.
In figures released December 15 by the (BTS), a USA Department of Transportation agency, American Airlines (AAL)’s (3Q) revenue figures in both categories reflected the consolidation of its reporting following its merger with US Airways (AMW)/(USA), with extreme (YOY) boosts in revenue: for baggage fees, (AAL)’s revenue grew +88.5% (YOY), while for reservation cancellation/change fees, its revenue grew +51.7% (YOY). Looking more closely, however, if the (3Q) 2014 revenues from both airlines are combined and contrasted to the consolidated (AAL) (3Q) 2015 revenue, the (AAL)'s (YOY) changes are more realistic, with baggage fee revenue rising +3.9% (YOY), and reservation cancellation/change fee revenue falling -2.7% (YOY).
For third-quarter baggage fee revenues, after American Airlines (AAL)’s $292.1 million in revenue, Delta Air Lines (DAL) earned the most, with $236.9 million in revenue, virtually flat with its (3Q) 2014 total. United Airlines (UAL) was next, with $184.7 million in revenue, up +2.2% (YOY).
Four of the five reporting low-cost-carriers (LCCs) showed remarkable jumps in (3Q) 2015 baggage fee revenue. JetBlue Airways (JBL) reported $42.7 million in (3Q) baggage fee revenue, up +86.6% from $22.9 million in (3Q) 2014. Allegiant Air (WJE), Spirit Air Lines (SPR) and Frontier Airlines (FRO) all saw (YOY) baggage fee revenue growth of +25.2%, +23.5% and +22.6%, respectively. Virgin America (VUS)’s (3Q) baggage fee revenue fell -1% (YOY).
Southwest Airlines (SWA) reported a -34.9% (YOY) drop in baggage fee revenue, earning $11.5 million during the September quarter (compared to $17.7 million in (3Q) 2014). (SWA)’s baggage policy allows two checked pieces of baggage per customer. Excess baggage on (SWA) starts at $75 per item one-way.
(DAL) brought in the most revenue for reservation cancellation/change fees during the third quarter with $230.9 million, up +2.1% (YOY). Following (AAL)’s $217 million in revenue, (UAL) reported $202.2 million in revenue, down -4.2% (YOY).
Low Cost Carriers (LCC)s (FRO) and (WJE) both had notable increases in revenue for reservation cancellation/change fees during the quarter. (FRO)’s revenue was up +41.2% (YOY) to $9.3 million, while (WJE)’s was up +31.7% (YOY) to $2.7 million. Minneapolis-based, Sun Country Airlines (SCA) reported reservation cancellation/change fees revenue of $3.8 million during the quarter, over >5 times what the airline earned in (3Q) 2014.
A319-112 (2450, N308NV), ex-(G-EZIF) delivery.
January 2016: News Item A-1: Las Vegas-based Allegiant Travel Company, parent of Allegiant Air (WJE), posted 2015 net income of +$220.4 million, more than doubling its 2014 net result of +$87 million.
(WJE)’s December quarter net profit was +$56.7 million, an 11-fold rise over (WJE)’s +$4.8 million profit in the year-ago quarter. It was (WJE)’s 52d consecutive profitable quarter; its “best quarter ever in our best year ever,” (WJE) Chairman & (CEO) Maurice Gallagher said. “The drop in global energy prices was a big contributor to these results,” Gallagher said. “[We] generated operating margins just short of 30% for the year.”
(WJE), specializing in flights from smaller USA cities to USA vacation destinations, has now been profitable for every quarter for 13 consecutive years.
“We faced operational challenges during the year,” Gallagher said. “We have work to do to get our operations where we need to be March of this year we ran like a Swiss top, we were in great shape. We had a more difficult summer in the June and July period, and even through the fall we were not in bad shape. “
“Having said that, we have places we want to go and improve,” Gallagher told investors and analysts January 27. “The management changes you are seeing are key to getting to those points.”
Following the January 15 resignation of (WJE) (COO) Steve Harfst announced on January 22 that Senior VP Planning Jude Bricker had been named (COO) and assigned oversight of Flight Operations, Maintenance & Safety, in addition to his current Network & Fleet Strategy role. Additionally, (WJE) (CFO) Scott Sheldon was assigned oversight of (WJE)’s In-flight & Operation Control Center (OCC), in addition to his current Finance, Procurement and Customer Operations duties.
Allegiant (WJE)’s 2015 revenue was +$1.26 billion, up +11% year-over-year (YOY), while expenses fell -9.1% (YOY) to $890.5 million, producing operating income of $371.7 million, more than doubling the company’s +$157.3 million in operating profit in 2014.
(WJE)’s 2015 traffic increased +14.3% (YOY) to 8.94 billion (RPM)s on a +17.7% (YOY) rise in capacity to 10.53 billion (ASM)s, producing a load factor of 85% LF, down -2.5 points (YOY). (WJE) added 7 Airbus A320-series aircraft into service during the 4th quarter, bringing its total of Airbus aircraft in service to 24 as of December 31, 2015, compared to 11 at the end of 2014. 1 Boeing 757 was retired from (WJE)’s fleet in October; (WJE) intends to retire the remainder of its 757s by the end of the 2017 winter holiday period.
“Operational challenges that we had over the last several months really mainly had to do with the growth that we were putting through our network and that manifested itself in a couple different ways,” Bricker said. “The 1st was that we were taking on a lot of new airplanes and they’ve been slow to come up to the fleet average reliability we’ll work through those issues for the remainder of the 1st and 2nd quarters [of 2016].”
“More materially, we continue to struggle with crew availability as our training pipeline tries to catch up with the fleet growth,” Bricker said. “We think that that will have been solved by the end of the first quarter and continue to improve to where we’re in a small surplus of crews by the end of the summer period. So I think we’re on top of those two main issues.”
News Item A-2: "Southwest Airlines (SWA) Beware: the Meaning of Allegiant Air (WJE) Adding Baltimore/Washington International Airport (BWI)" by (ATW) Aaron Karp in his AirKarp Blog, January 14, 2016.
The most intriguing network expansion in the USA announced by an airline so far in early 2016 is (WJE)’s move into Baltimore/Washington International Airport (BWI), planned for this spring. 2 worthy notables: 1) (WJE) is staking a claim at Southwest Airlines’ USA east coast stronghold; (SWA) has around a 70% market share at (BWI). 2) (BWI) to Cincinnati, 1 of the routes (WJE) will be operating, is decidedly NOT a route featuring a small, regional market at one end and a leisure destination at the other end, which has long been (WJE)’s calling card.
(WJE) has been profitable for 51 straight quarters (likely to be 52 when its 4th-quarter 2015 earnings are announced) and has only had 1 real recent failure: its ill-fated attempt to fly 757s to Hawaii, an endeavor on which it is pulling the plug this year. That likely has spooked (WJE) from pursuing beyond-continental USA expansion. So where will (WJE)’s expansion come from?
(WJE) has so far been immune to the major carrier price-matching that is bedeviling fellow (ULCC)s Spirit Airlines (SPR) and Frontier Airlines (FRO)) simply because, unlike (SPR) and (FRO), it does not attempt to compete on routes dominated by big USA airlines like American (AAL), Delta (DAL), United (UAL) and (SWA). That’s not likely to change. But (WJE) appears to be making 2 alterations (or additions) to its strategy of flying from markets like Bismarck, North Dakota to leisure markets like Las Vegas and Orlando. That strategy will surely still be Allegiant (WJE)’s bread-and-butter: cheaply taking folks in small towns to vacation destinations.
But (BWI) indicates 2 strategic additions:
1) Filling in network “gaps” not served by (SWA) and other big USA airlines. The 1 thing the 6 destinations (WJE) plans to serve from (BWI) (Cincinnati, Savannah, Tulsa, Asheville, Knoxville, and Lexington) have in common: none are on (SWA)’s network.
2) Targeting underserved medium-size market to medium-size market routes. Last year, (WJE) started serving Austin to Cincinnati and indicated it is interested in connecting non-major markets that aren’t served (or are only served via high-fare itineraries requiring connections and trips aboard regional aircraft).
Don’t expect Allegiant (WJE) to start going head-to-head with (AAL), (DAL) or (UAL) or even (SPR), (FRO) or (SWA). But it is starting to augment its small town to Las Vegas/Orlando/San Diego model by looking for the gaps in the USA domestic airline network. Given that it does not operate daily service and is flexible on what days it flies ((BWI) to Cincinnati, for example, will be 2x-weekly and not always on the same days every week), these new routes are somewhat low-risk for (WJE).
(WJE) is basically saying: Hey, if you need to get from Baltimore to Cincinnati to visit Grandma and don’t really care what day you fly, then we’ll get you there directly, cheaply and without flying aboard a regional aircraft (Though you will be flying aboard an older, used MD-80 or an older, used A319/A320). How big of a market is there for these types of travelers? Allegiant (WJE) wants to find out.
February 2016: News Item A-1: INCDT: An Allegiant Air (WJE) McDonnell Douglas MD-83 (JT8D-219) (2102-53467, /95 N877GA) performing flight G4-624 from Orlando Sanford, Florida to Allentown, Pennsylvania (USA) with 152 passengers and 6 crew, landed on Allentown's runway 24 but came to a stop with both left hand main tires blown and was disabled on the runway. The flight crew (FC) requested emergency services to respond and queried the tower whether they could see anything. The tower advised they were not able to see anything, and the trucks were rolling. Emergency services subsequently advised that both left main tires were blown, there was no smoke and no leaks. The passengers disembarked onto the runway and were transported to the terminal.
The runway was closed for about 3 hours until mechanics (MT) were able to tow the airplane to the apron.
A passenger reported that after touch down, there was a jolt (in hindsight probably the first tire blowing, followed by a second jolt, obviously the second tire blowing, followed by vibrations and smell of burning rubber).
News Item A-2: Allegiant Air (WJE) commenced services on 4 USA domestic routes on February 18 and 19, with 2 services launching from Punta Gorda (PGD) on the former date, while a further 2 launched from Pittsburgh (PIT) on the latter date. All services will operate 2x-weekly, with none of the 4 facing any direct competition. However, Southwest Airlines (SWA) will recommence seasonal services later this year between Pittsburgh and West Palm Beach.
Commenting on the launch of services from Punta Gorda, Jude Bricker, Allegiant Air (WJE)’s (COO), said: “(WJE) is very pleased to launch these new routes from Belleville/St Louis and Harrisburg to beautiful southwest Florida. From golfing, fishing, beach lounging, and more, we look forward to bringing these new visitors to experience Fort Myers and to stimulate economic growth in the area.” It is expected that Punta Gorda’s 2 new routes will bring nearly 38,000 additional visitors each year to the Fort Myers area.
Routes as follows:
Punta Gorda (PGD) to Belleville/St Louis (BLV), and to Harrisburg, (MDT) MD-80 2x;
Pittsburgh (PIT) to New Orleans (MSY), and to West Palm Beach (PBI), MD-80 2x.
March 2016: News Item A-1: Allegiant Air (WJE) begins 2x-weekly, Austin to Albuquerque service on June 2.
News Item A-2: Allegiant Air (WJE) has unveiled another wave of new routes, which will see (WJE) adding three new points to its network in the coming months.
(WJE) will begin service to Sonoma County (California) In May, followed by Albuquerque (New Mexico) and Evansville (Indiana) in June.
Allegiant (WJE) will start nonstop service from Albuquerque to both Austin and Las Vegas, and connect Sonoma County with Las Vegas and Phoenix Mesa. At Evansville, it will offer flights to Orlando Sanford.
(WJE) will also launch 17 other new routes connecting existing points in its network. (WJE) will operate 2x-weekly on all of the new routes with a mix of Airbus A320 family and Boeing MD-80 airplanes.
(WJE) will not face direct competition on most of its new routes. (WJE) will, however, compete directly against 3 airlines on service between Los Angeles and Reno: American Airlines (AAL), Southwest Airlines (SWA), and United Airlines (UAL).
(WJE) will compete against (SWA) on service between Albuquerque and Las Vegas, and against Delta Air Lines (DAL) on flights between Los Angeles and Memphis.
The addition of Albuquerque fits with (WJE)'s ongoing strategy to expand to USA mid-sized cities. (WJE)'s VP Network & Pricing, Lukas Johnson said (WJE) sees an opportunity in offering competing service between Albuquerque and Las Vegas. "(SWA) cut frequencies significantly in the last couple of years," he said.
(SWA) operates up to 4x-daily nonstop between the 2 cities. The number of flights operated by (SWA) on the route has fallen by about -25% when compared to 2013.
As for launching service between Albuquerque and Austin, (WJE)'s Johnson said the Texan city is among the top unserved markets from Albuquerque.
News Item A-3: Aircraft Leasing & Management (ALM) of London Gatwick has arranged the sale of 1 Airbus A319-100 aircraft from Japan’s Cassiopeia Leasing to Sunrise Asset Management, a subsidiary of Allegiant Travel Company. The aircraft has been acquired by Sunrise Asset Management for operation by (WJE). The aircraft was previously operated by easyJet (EZY) since new, until redelivery and transfer to (WJE) on February 26 and was part of the Fuyo General Lease portfolio managed by (ALM). In addition to arranging the sale, (ALM) coordinated the redelivery of the aircraft from (EZY) and its transition to (WJE) as part of its management responsibility for the (FGL) operating lease portfolio.
(WJE) will not face direct competition on most of its new routes. It will, however, compete directly against 3 airlines on service between Los Angeles and Reno: American Airlines (AAL), Southwest Airlines (SWA) and United Airlines (UAL).
(WJE) will compete against (SWA) on service between Albuquerque and Las Vegas, and against Delta Air Lines (DAL) on flights between Los Angeles and Memphis.
The addition of Albuquerque fits with Allegiant's ongoing strategy to expand to USA mid-sized cities. (WJE)'s VP Network & Pricing Lukas Johnson said (WJE) sees an opportunity in offering competing service between Albuquerque and Las Vegas. "(SWA) cut frequencies significantly in the last couple of years."
(SWA) operates up to 4x-daily nonstop between the 2 cities, schedules in Innovata show. The number of flights operated by (SWA) on the route has fallen by about 25% when compared to 2013. As for launching service between Albuquerque and Austin, (WJE)'s Johnson said the Texan city is among the top unserved markets from Albuquerque.
Compared with Albuquerque, Sonoma County and Evansville are smaller destinations. Sonoma County, in California's wine country, is an "interesting" city to Allegiant (WJE). "It's a unique city that we are excited about," said Johnson.
Allegiant (WJE)'s latest new routes also include 4 new seasonal services to Destin Fort Walton Beach in Florida, a new destination that (WJE) announced in January. Service to the airport will begin only in May, but (WJE) has already announced additional frequencies on the two Destin Fort Walton routes it unveiled in January.
With the latest routes, (WJE) will offer seasonal service to DestinFort Walton from 6 destinations this summer.
Johnson said: "We certainly want to grow there. The economics are really good in terms of fuel prices right now."
April 2016: News Item A-1: Allegiant Air (WJE) commenced 3 new services, starting on April 7 with a domestic California state connection between San Diego (SAN) and Stockton (SCK). Flights on the 679 km sector will be operated 2x-weekly (Thursdays and Sundays) facing no direct competition. The following day, (WJE) inaugurated two new routes from Savannah (SAV) to Indianapolis (IND) and Pittsburgh (PIT). Both 959- and 933-km city pairs will each be served 2x-weekly (Mondays and Fridays) also facing no direct competition.
(WJE)'s 3 latest routes will all be served by (WJE)’s MD-80 fleet.
News Item A-2: Allegiant Air (WJE) is increasing its marketing budget and investing more in customer service as it moves into larger markets, such as Pittsburgh, Cincinnati, Baltimore, and Memphis, executives said in a briefing at (WJE)’s headquarters.
News Item A-3: As the fleet becomes increasingly less reliable, Allegiant Air (WJE) wants to retire all of its MD-80s by 2020, if not sooner, but its plans will depend on how quickly it can source used Airbus A319s and A320s.
May 2016: News Item A-1: Allegiant Air (WJE) celebrated the start of services on 7 routes this month. None of (WJE)’s new USA domestic city pairs will face any direct competition, with all routes to be operated by the carrier’s MD-80 fleet. 3 of the 7 routes are flown from (WJE)’s latest base at Baltimore/Washington (BWI), where (WJE) inaugurated services on April 29.
Routes as follows:
Baltimore/Washington (BWI) to Asheville (AVL), to Knoxville (TYS), to Tulsa (TUL);
Las Vegas (LAS) to Santa Rosa (STS);
Myrtle Beach (MYR) to Harrisburg (MDT);
Orlando Sanford (SFB) to Akron-Canton (CAK);
Cincinnati (CVG) to Destin Fort Walton Beach (VPS).
News Item A-2: Allegiant Air (WJE) has agreed to purchase 4 additional Airbus A319s from Philippines-based low-cost carrier (LCC) Cebu Pacific Air (CEB). The aircraft are scheduled for delivery in 2017 and 2018.
(WJE) previously agreed to purchase 6 A319s from Cebu Pacific (CEB). (WJE) has taken delivery of 3 of those aircraft, with the remaining deliveries scheduled to occur later this year.
By the end of 2016, (WJE)’s in-service Airbus fleet will number 33, comprising 16 A320s and 17 A319s. (WJE) said it anticipates adding further aircraft commitments, as opportunities for new transactions arise. At the end of this year, (WJE) will have a total of 85 aircraft in revenue service.
“By the end of 2016, Allegiant (WJE) will be a majority Airbus (EDS) carrier, as measured by available seat miles,” Allegiant Travel Company (COO), Jude Bricker said. “This agreement to purchase additional aircraft from (CEB) is an important step in our long-term transition to a single fleet type.”
(WJE) said the younger A320 family aircraft will help to increase operational efficiency in the coming years and open up new growth opportunities by making longer routes and off-peak flying profitable.
September 2016: "Allegiant: Newark Routes Aimed At Leisure Travelers"
Allegiant Air (WJE)’s service to Newark Liberty International Airport, launching in November, is its attempt to reach what Chief Operating Officer (COO) Jude Bricker says is the “top leisure destination” in the USA.
(WJE) will fly to Newark from Savannah, Georgia, Asheville, North Carolina, and Knoxville, Tennessee, offering each route less than daily. The routes to Newark were made possible earlier this year when the (FAA) loosened slot constraints at the airport. Newark is an unusual destination for Allegiant Air (WJE), which has typically flown leisure routes from small and mid-sized cities. (WJE) also serves Los Angeles, but the Newark routes are its first to the USA’s largest metropolitan area. “We expect Newark to be a destination market,” Bricker said, adding (WJE) does not expect to originate much traffic from the greater New York City area to start. “We hope to have more New York originating traffic as the routes mature,” he added. But he acknowledged that cracking the New York market could be challenging. Advertising costs in the market are high, and the carrier has little brand identity in the region.
The new routes to Newark are leisure routes, Bricker insists. “A big hole in our network was New York, the top leisure destination in the country,” he said. “We are not targeting business travelers for these flights,” he said, adding that the passenger mix is expected to be similar to that on other parts of Allegiant (WJE)’s network.
(WJE)’s usual passengers were families going on vacations in Florida and other “warm-weather” destinations, Bricker said. But this is changing, especially as (WJE) starts to connect more mid-sized cities. “Our passengers are getting a little younger,” he said. “But we are not changing our focus. Business travelers are not a particular area of focus for us.”
Madhu Unnikrishnan, firstname.lastname@example.org
December 2016: Allegiant Air (WJE) launches services from San Juan to Orlando on December 14; San Juan to Cincinnati from December 17 and San Juan to Pittsburgh on December 17.
January 2017: Allegiant Air (WJE) will launch 2x-weekly Baltimore (BWI) to Destin/Fort Walton Beach, Florida nonstop seasonal service from May 31. This is (WJE)’s 7 route served out of (BWI).
February 2017: The Allegiant Travel Company, parent of ultra-low-cost carrier (ULCC) Allegiant Air (WJE), reported a +$219.5 million net profit for 2016, down -0.4% from +$220.4 million in 2015.
(WJE) posted a 4th-quarter 2016 net profit of +$41.3 million, down -27.2% from +$56.7 million in net income for (4Q) 2015. 4th-quarter revenue totaled $335.9 million, up +8% from (4Q) 2015.
Allegiant (WJE) Chairman & (CEO) Maurice Gallagher described 2016 as a transformational year. “We finalized a single fleet type plan, signed our 1st pilot (FC) contract agreement and announced the appointment of John Redmond as President of (WJE),” Gallagher said. “Each of these actions is critical in the evolution of our business model in the coming years.”
(WJE) plans to transition to an all-Airbus (EDS) fleet by 2019. (WJE) ordered 12 A320ceos in July 2016.
In a January 31 conference call with analysts, Gallagher announced a new senior management tier for the company Executive VP (EVP). (WJE)’s current Senior VP (SVPs) Jude Bricker, Scot Allard and Scott Sheldon were all elevated to the new Executive VP level. 4 VPs were concurrently promoted to Senior VP status: Greg Anderson, to Senior VP and principal accounting officer; Lukas Johnson, to SVP Planning; Trent Porter, to Senior VP Financial Planning; and Rob Wilson, to Senior VP Systems. Gallagher described the new positions as “allow[ing] more pathways upwards for our Managers.”
Allegiant (WJE)’s total 2016 operating revenue was $1.4 billion, up +8% from $1.3 billion in 2015. Operating expenses increased +11.4% year-over-year (YOY) to $992.3 million, reflecting a +27.1% rise in salaries and benefits, a +21.3% increase in station operation expenses and a +20% increase in maintenance and repairs costs, offset by a -60.3% (YOY) drop in airplane lease rental expenses ($924 million in 2016, compared to $2.3 billion in 2015). (WJE)’s operating income for the year was $370.6 million, down -0.3% from $371.8 million in 2015.
Allegiant (WJE)’s 2016 traffic grew +15% in 2016 to 10.3 billion (RPM)s on a +17.6% rise in capacity to 12.4 billion (ASM)s, producing a load factor of 83.1% LF, down -1.9 points from 2015.
(WJE)’s fleet as of December 31, 2016, totaled 84 aircraft, up +4 aircraft from 2015, comprising 47 MD-80s, 17 Airbus A319s, 16 A320s and 4 Boeing 757s. (WJE) intends to retire its 757 fleet in 2017; 2 757s are planned for retirement by the end of the 2017 1st quarter. 2 A319s and 1 A320 are set to enter service during (1Q) 2017.
Allegiant Air (WJE), which historically specializes in flights from smaller USA cities to USA vacation destinations, said it has now been profitable for every quarter for 14 consecutive years. (WJE) increased its network +21.6% in 2016, operating 360 routes as of the end of the year, compared to 296 in 2015. During (4Q) 2016, (WJE) started flying to Newark, New Jersey and San Juan, Puerto Rico and opened up Trenton, New Jersey as an origination city. In May and June this year, (WJE) plans to launch a combined 17 new routes from origination airports in Louisville, Kentucky and Destin/Fort Walton Beach, Florida.
April 2017: Allegiant Travel Company, parent of low-cost carrier (LCC) Allegiant Air (WJE), reported 1st-quarter 2017 net income of +$41.6 million, down -42.2% from a +$72 million profit in (1Q) 2016.
1st-quarter revenue rose +7.8% to $375.8 million, while expenses rose +33.2 % to $302.9 million, producing an operating profit of +$72.9 million, down -39.8% from a +$121.1 million operating profit in the 2016 1st quarter. (CASM) increased +18.3% to 8.97 cents. (CASM) ex-fuel increased +11.6% to 6.46 cents.
(WJE)’s Aircraft fuel expenses increased +57.8% year-over-year (YOY) to $84.7 million in the 1st quarter. Salary and benefits also increased markedly, up +39.1% (YOY) to $96.3 million, related to the labor agreement (WJE) reached with its pilots (FC) last summer, which went into effect in August 2016. During the 1st-quarter, (WJE) noted the new pilot agreement attributed to 8% of (CASM) ex-fuel expenses; in (2Q) 2017, pilot (FC) agreement expenses are expected to account for 6% points of a total 13% to 15% rise in (CASM) ex-fuel costs.
“On a full-year basis we expect pilot (FC) contract headwinds related to increase in rates, benefits and reduced productivity of nearly $55 million. That makes up approximately 7% points of our newly guided [full-year (CASM) ex-fuel] range above 9% to 12%,” Allegiant (WJE) Executive VP & (CFO) Scott Sheldon said. “Year-over-year costs become easier in the back half of the year, but will continue to be challenged by historically low pilot productivity as defined by blocks paid, until mid-to late 2018.”
Allegiant (WJE) forecast additional cost pressures for the remainder of the year related to the company’s January 2017 decision to eliminate its credit card surcharge, as well as costs related to earlier-than-planned retirements of (WJE)’s MD-80 fleet. “Our transition to an all-Airbus (EDS) fleet is underway and, so far, on schedule,” (WJE) Chairman & (CEO) Maurice Gallagher said. “One-time expenses associated with this transition will be lumpy, most of which will occur from now through the summer of 2018.”
As of March 31, (WJE)’s MD-80 fleet stands at 47 aircraft. The company plans to reduce that to 38 MD-80s aircraft by year-end. Additionally, 2 Boeing 757s will be removed by year-end 2017. Allegiant (WJE)'s Airbus fleet stood at 36 A320 family aircraft at the end of the 1st quarter. (WJE) expects to take delivery of 2 A320s and 1 A319 during (2Q) 2017.
“By the end of this year we expect to have 60% of the transition complete, or a fleet of 51 Airbus aircraft,” Gallagher said. “We should be finished with this effort and out of the MD-80 by the end of 2019.”
(WJE)’s 1st-quarter system traffic rose +7.5% to 2.7 billion (RPM)s on a 12.5% increase in capacity to 3.4 billion ASMs, producing a load factor of 80.2% LF, down -3.8 points. (WJE) is serving 60 more cities than it did last year at this time.
May 2017: Allegiant Air (WJE) has begun flights on 3 unique routes starting on May 17 with flights between Fort Lauderdale (FLL) and Belleville (BLV) in Illinois. The 1,654 km route will be served by (WJE) 2x-weekly (Wednesdays and Saturdays).
On May 19, a 2nd route to Fort Lauderdale was also launched, with (WJE) connecting the Floridian airport with Louisville (SDF) in Kentucky. The 1,422 km city pairing will also be served 2x-weekly (Mondays and Fridays).
The 3rd and final route to launch was a 1,479 km sector between Austin (AUS) and Indianapolis (IND). “Now the race fans of the Indy 500 can easily come to our Grand Prix at the Circuit of America or see a concert there and enjoy the live music capital of the world,” said Jim Smith, Executive Director of Austin Airport. “We welcome (WJE)’s growth at Austin’s Airport.”
Also operating 2x-weekly (Mondays and Fridays), the city pairing between the racing centres of the USA is scheduled to operate on (WJE)’s fleet of MD-83s. Both routes involving Fort Lauderdale will be operated on (WJE)’s fleet of A320s.
A320-214 (7664, N246NV), EX-(F-WWDZ) delivery.
June 2017: Ultra-low-cost carrier (ULCC) Allegiant Air (WJE) has signed a 12-year lease with Kuwait-based (ALAFCO) Aviation Lease and Finance Company for 13 Airbus A320s.
(WJE) said the 8-year-old aircraft are expected to enter service beginning in the 1st quarter of 2018. The agreement includes an option to purchase at the end of the lease term. The A320s will be configured with 186Y seats and will be powered by (CFM) International’s (CFM56-5B) engines.
(WJE) called the agreement “another important step” toward (WJE)’s planned transition to an all-Airbus fleet by 2019.
(WJE) Chairman & (CEO) Maurice Gallagher said the fleet transition “will not only bring the benefit of operating efficiencies in training, scheduling, maintenance and more, but will also mean key economic advantages through greater fuel efficiency and higher seat capacity. This puts us in an ideal position for the future: to continue offering travelers the industry’s best fares, while at the same time increasing reliability.”
In May, (WJE) took delivery of its 1st-ever new A320neo. The A320s will eventually replace (WJE)’s fleet of 47 MD-80s, 12 of which are expected to exit the fleet this year.
(ALAFCO) (CEO) and Vice Chairman Ahmad Alzabin said Allegiant is (ALAFCO)’s 1st USA customer. “With the recent establishment of (ALAFCO)’s Irish subsidiary, we expect further penetration into the North American market,” he said.
This transaction brings Allegiant (WJE) to a total of 92 Airbus aircraft either in service or committed for future delivery.
A320-214 (1210, N232NV), ex-(EC-LVB) delivery.
August 2017: News Item A-1: Allegiant Air (WJE) will begin 2x-weekly Louisville, Kentucky to Las Vegas, Nevada service from November 16.
News Item A-2: Allegiant Air (WJE) is in the process of retiring its 43 remaining MD-80s and should see the last ones exiting the fleet in 18 months. (WJE)’s last 2 Boeing 757s will be retired by the end of November, (WJE) Senior VP Commercial Lukas Johnson said.
September 2017: Allegiant Air (WJE) will launch 2x-weekly seasonal Omaha, Nebraska to Punta Gorda/Fort Myers, Florida service from December 14.
October 2017: Allegiant Air (WJE) has now welcomed Milwaukee (MKE) to its network, initially beginning service to the Wisconsin airport from St Pete-Clearwater (PIE) and Punta Gorda (PGD) in Florida on October 13. (WJE) from mid-November will also launch flights to Milwaukee from Fort Lauderdale, Orlando Sanford and Phoenix-Mesa. “We’re thrilled to begin service to Milwaukee, connecting travellers in the area to the sunny beaches of Punta Gorda and St Pete-Clearwater,” said Lukas Johnson, Senior VP Commercial, (WJE) on the day of the launch. Chris Abele, Milwaukee County Executive, added to Johnson’s word by commenting: Both 1,753- and 1,857-km links launched by (WJE) will be flown 2x-weekly (Mondays and Fridays) on (WJE)’s fleet of A320s. No other airlines currently offer either of these 2 routes.
November 2017: Allegiant Air (WJE) commenced 19 new routes between November 15 and 17, with 13 of those routes being flown by (WJE)’s A319s and A320s. The base which has gained the most new connections is Phoenix-Mesa (AZA), with the Arizona airport gaining 4 services, while Cincinnati (CVG), Las Vegas (LAS), Orlando Sanford (SFB) and Punta Gorda (PGD) have welcomed 3 each respectively. The average frequency of (WJE)’s new routes is 2.1, while the average sector length is 1,832 km. Of the 19 connections, 5 will face direct competition from either Delta Air Lines (DAL) or Southwest Airlines (SWA).
* Cincinnati (CVG) to Providence (PVD), A319 (2x-); to Raleigh-Durham (RDU), A319 (2X-) vs Delta Air Lines (DAL) (14x-);
* Fort Lauderdale (FLL) to Milwaukee (MKE), A320 (2x-) vs Southwest Airlines (7x-);
* Las Vegas (LAS) to Louisville (SDF), MD80 (2x-) vs Southwest Airlines (SWA) (7x-); to Ogden (OGD)(2x-);
* Norfolk (ORF) to Omaha (OMA), MD80 (2x-) vs (SWA) (13x-);
* Orlando Sanford (SFB) to Milwaukee (MKE), MD80 (2x-); to Norfolk (ORF) (2x-); to Stewart (SWF), (2x);
* Phoenix-Mesa (AZA) to Belleville (BLV), A319 (2x-); to St Pete-Clearwater (PIE), A319 (2x-); to
* Punta Gorda (PGD) to St Cloud (STC), A320 (2x-); to Rochester (ROC), A320 (2x-); to Stewart (SWF), A320 (2x-);
* St Pete-Clearwater (PIE) to Ogdensburg (OGS), A320 (2x-).
December 2017: News Item A-1: Allegiant Air (WJE) launched 2x-weekly Omaha to Punta Gorda/Fort Myers, Florida service.
News Item A-2: After 6 years of negotiations, Allegiant Air (WJE) and its 1,150 flight attendants (CA) have a contract. (WJE)’s flight attendants (CA), as represented by the Transport Workers Union of America, (AFL-CIO) (TWU) voted to ratify the collective bargaining agreement, their 1st-ever with the company, which went into effect December 21 for a 5-year term.
(TWU) said the contract was ratified by a 70% vote, with 95% of membership participating. According to (TWU), the agreement provides for better wages, sick leave and grievance procedures. “The rank-and-file flight attendants (CA) and (TWU) leadership were determined to win a solid contract from Allegiant Air (WJE),” (TWU) international President John Samuelson said. Efforts to secure a collective bargaining agreement for (WJE)’s flight attendants began in 2011.
(WJE) was hard hit by the hurricanes that struck the Caribbean and SE USA in August and September. (WJE)’s 2017 3rd-quarter net profit totaled +$22 million, a -51% drop from the (3Q) 2016. In its quarterly results presentation at the end of October, (WJE) said it was seeing a decrease in demand for the 4th quarter and noted that approximately 80% of its (4Q) capacity traditionally touches Las Vegas or Florida. At the time, Las Vegas was still reeling from the October 1 mass shooting on the Las Vegas strip.
Nonetheless, Allegiant (WJE)’s traffic rebounded in November. The company reported a +12.8% year-over-year increase in both passengers and (RPM)s, and capacity was up +10.6%. (WJE)’s 81.5% LF passenger load factor was +1.6 points higher (YOY).
News Item A-3: Allegiant Air (WJE) will focus on adding 30 Airbus aircraft between the end of 2017 and 2018 as it works under an accelerated schedule to retire its MD-80s. (WJE) reiterated in a November 30 investor-day presentation that it expects to retire its MD-80 fleet by the end of 2018, about 1 year earlier than originally planned. The last MD-80 is scheduled to depart on November 25, 2018, (WJE) (CEO) Maurice Gallagher said.
(WJE) expects to end 2017 with a fleet comprising 37 MD-80s, 22 A319s, 20 177-seat A320s and 10 186-seat A320s.
News Item A-4: Viva Air (QUD) has firmed an order for 35 Airbus A320neo and 15 A320ceo single-aisle aircraft. The group originally signed a Memo of Understanding (MOU) for the aircraft at the Paris Air Show in June.
(QUD) said the aircraft will be operated by the group’s airlines VivaColombia and Viva Air Peru and will allow the 2 all-Airbus operators to modernize their fleets and capture growth opportunities across Latin America. “This order reflects our long-term commitment to our customers lowering fares further due to the benefits of this new fleet,” (CEO) & Founder of VivaColombia, William Shaw said. He added that the group planned to accelerate its growth throughout Latin America.
The Airbus (EDS) - VivaColombia relationship began in 2012 when the airline began operations with A320s. VivaColumbia, based in Medellin, has been an all-Airbus operator since, and today operates 11 A320s.
Viva Air (QUD) recently launched Viva Air Peru, which currently operates 3 A320s.
(QUD) is a Panamanian-headquartered group created by Irelandia Aviation and led by Declan Ryan. Irelandia specializes in developing (LCC)s and has 6 around the world: Ryanair (RYR), Allegiant (WJE), Tigerair (TGR), VivaAerobus, VivaColombia and most recently Viva Air Peru. Combined, the airlines have a fleet of >420 aircraft.
January 2018: 3 more carriers are banning so-called smart bags from being checked into luggage holds unless the bag’s integrated lithium battery can be removed and carried separately.
Las Vegas-based (LCC) Allegiant Airlines (WJE), Hawaiian Airlines (HWI) and Chicago-based United Airlines (UAL) have announced the new rules will take effect January 15.
They follow similar actions by other carriers including Air Canada (ACN), Alaska Airlines (ASA), Dallas/Fort Worth-based American Airlines (AAL), British Airways (BAB), Hong Kong’s Cathay Pacific Airways (CAT), Atlanta-based Delta Air Lines (DAL), Etihad Airways (EHD), Qantas Airways (QAN), Qatar Airways (QTA), Southwest Airlines (SWA) and Virgin Australia (VOZ).
Smart bags use lithium ion batteries to power electronics and embedded tracking and self-weigh devices. There is increasing concern, however, about lithium ion batteries causing runaway fires in cargo holds unless devices are properly stored and separated from items that could worsen a fire, such as cans of inflammable liquids.
The (FAA), (NTSB) and (ICAO) have issued warnings on the potential hazards associated with lithium ion batteries and guidelines to minimize fire risks.
Passengers are being told they can check their smart bag only if the battery can be removed and taken on board separately as carry-on.
February 2018: News Item A-1: The Allegiant Travel Company, parent of low cost carrier (LCC) Allegiant Air (WJE), reported $194.9 million net income for 2017, a -11.2% drop from its +$219.6 million net profit in 2016. The full-year result reflected not only rising fuel and labor expenses, but also a $35 million write-down of (WJE)’s retiring MD-80 fleet, a difficult 3rd quarter affected by the August to September hurricanes and a +$74.1 million benefit late in the year related to USA tax reform.
News Item A-2: Allegiant Air (WJE) has enhanced the schedules of its 12th and 14th largest operations (namely Columbus/Rickenbacker (CMH) and Austin (AUS)) by introducing a service between the 2 airports on February 16.
“We’re very excited to continue our growth in Austin,” said Lukas Johnson, (WJE) Senior VP Commercial. “The demand to visit this destination is high and we are thrilled to offer Columbus-area travellers their only ultra low-cost nonstop option to experience the Live Music Capital of the World.”
Jim Smith, Executive Director of Austin Airport added: “We are pleased to have (WJE) provide us with another option for connecting Central Texas to the Midwest.” Operated by (WJE)’s MD-80 fleet on a 2x-weekly basis (Mondays and Fridays), the city pair has no incumbent carriers. “Austin was one of our community’s most in-demand destinations for non-stop flights. We are very pleased (WJE) and Frontier (FRO) established this service to connect our 2 vibrant state capitals,” said Joseph Nardone, President & (CEO) of the Columbus Regional Airport Authority, which operates John Glenn International and Rickenbacker International airports. There is no competition on the 1,712 km city pair.
April 2018: News Item A-1: "USA Ultra-(LCC) Allegiant Strongly Denies ‘Unsafe’ Allegations" by (ATW) Sean Broderick (email@example.com), April 16, 2018.
USA ultra-(LCC) Allegiant Air (WJE) is pushing back hard against new allegations that it runs an unsafe airline, pointing to changes aimed at improving its operations as evidence.
“I am outraged and astounded by the irresponsible, grossly misleading story aired by (CBS) 60 Minutes,” (WJE) VP Operations Eric Gust said. “The story is outdated, bears no resemblance to the (WJE) I know, and shows a real troubling misunderstanding of the (FAA)’s rigorous oversight of (WJE) and all USA airlines.”
The 60 Minutes televised piece, released April 15, built on stories published in late 2016 by the "Tampa Bay Times" newspaper in Florida. In them, (WJE)’s operational performance is questioned, backed by evidence (citing (FAA) service difficulty reports and other documents) of an unusually high number of in-service incidents and maintenance problems.
By then, however, both the airline and the (FAA) were moving to address issues with (WJE)’s operations. The (FAA) in 2015 “heightened [its] oversight of (WJE) while it was experiencing pilot (FC) labor issues,” the (FAA) explained in a letter provided to (CBS). (WJE) and its pilots (FC), represented by the Airline Professionals Association Teamsters Local 1224, agreed to a contract in July 2016. The agreement included “participation in critical (FAA) safety programs” (something the pilots (FC) prioritized during talks).
In early 2016, the (FAA) opted to conduct (WJE)'s next Certificate Holder Evaluation Process (CHEP) immediately, instead of waiting until its scheduled 2018 date. A (CHEP), done every 5 years on airlines and repair stations in addition to routine audits, is a top-to-bottom review on an operator’s system to ensure it is complying with federal regulations, and identifies any risk areas.
Among the notable in-service incidents leading up to the (FAA)’s (CHEP) decision: an aborted takeoff on August 17, 2015 involving an MD-83 at Las Vegas McCarran International Airport. (WJE) maintenance personnel (MT) discovered a missing cotter pin on an elevator power boost cylinder, a key flight control component. The missing pin allowed a nut to work free, which limited the left elevator’s travel and caused the airplane’s nose to lift off un-commanded during the takeoff roll.
On discovering the missing pin, (WJE) self-disclosed a possible regulatory violation, and the (FAA) opened an investigation. The (FAA)’s probe determined that the pin was not installed during a May 2015 overhaul by (AAR) Corporation. The (FAA) cited (AAR) for failing to comply with (WJE)’s Maintenance Program and its own Quality Control Manual. (WJE) contributed to the incident by not meeting its regulatory requirement of supervising all work done on its behalf.
The (FAA)’s 11-week (CHEP) evaluation, completed in June 2016, found a number of “procedural issues” and “minor discrepancies” in (WJE)’s operation, “but did not find any systemic or regulator problems,” the (FAA) said. (WJE) “addressed” the issues, the (FAA) said, characterizing them as “not uncommon to discover” during airline audits.
The (FAA) data show that (WJE)’s rate of reported events per 1,000 departures for the 6 months ended March 31 was less than half of the reported rate in fiscal 2015. Events include diversions, emergency landings, and passenger disturbances.
Among the allegations in the 60 Minutes and Tampa Bay Times reports: (WJE)’s front-line staff is discouraged from reporting incidents or, in extreme cases, taking action (such as diverting a flight) that might be a prudent safety decision that costs the airline money. A statement distributed by the airline and attributed to (WJE) pilot (FC) Steven Allen, elected by his colleagues to serve as Chairman of their executive council in 2017, refutes this.
“Throughout that year, I worked closely with the company’s operations and labor relations leadership,” Allen said. “If I was ever made aware of any issues, I always felt comfortable bringing them forth for open discussion with the group, even if it was something we might disagree on. I can confidently say that our culture of safety continued to move in a positive direction, and that remains true today.”
News Item A-2: Allegiant Air (WJE)'s ambitious plan to fast-track the retirement of its MD-80 fleet remains on schedule and (WJE)'s management says a dip in business following the recent CBS 60 Minutes feature has all but recovered.
(WJE) ended the 1st quarter with 32 MD-80s in its 88-aircraft fleet. It plans to park 5 this quarter, 8 in the 3rd quarter, and the last 19 in the final quarter. It will add 26 Airbus narrow bodies (20 A320s and 6 A319s) as part of its transition to a single fleet type, leaving it with 82 aircraft at the end of the year, down from 88 on January 1.
"Our 2nd-quarter activity, which has 16 Airbus inductions from 6 different operators and 5 MD-80 retirements, is more than we would typically take on and accomplish in an entire year," (CFO) Scott Sheldon said on an April 25 earnings call.
(WJE)'s original plan was to retain some MD-80s through 2019. But mounting reliability problems with the airplanes led management to revise its plan in mid-2017. Issues with the MD-80s were spotlighted in the (CBS) 60 Minutes report that called (WJE)'s safety culture into question. (WJE) executives acknowledged "reliability challenges" in 2015 in 2016, but said changes made to address them (including phasing out the MD-80s and personnel changes) have put those issues in the past.
"We have the proud distinction of having the best controllable completion at 99.9% of all USA airlines since August 2017," (WJE) President John Redmond said. "We're doing significantly better than prior year on all reliability metrics we and other airlines track."
(WJE) (CEO) Maury Gallagher said blame for the issues rested squarely in the c-suite. Basically, we, in senior management, did not execute as well as we should have," he said. "We did not provide the leadership." That led to changes starting in mid-2017, including a commitment to park the MD-80s.
The April 14 60 Minutes report led to a jump in cancellations and a drop in bookings, but (WJE) said both trends are reversing. "We've experienced cancellations and a reduction in bookings," Sheldon said. "The degree of these cancellations and bookings have reduced each day to a point we were starting to reach normalcy."
Click below for photos:
WJE-757-204ER - 2011-12
WJE-A319 - 2012-07
WJE-A319 - 2016-05.jpg
WJE-A320 - 2013-01
WJE-A320-214 MAKE A WISH-2014-06
WJE-MD-80 - 2013-09
WJE-MD-80 - 2014-08
WJE-MD-80 - 2016-02.jpg
WJE-MD-83 - 2015-06-A.jpg
WJE-MD-83 - A
WJE-MD-83 - B
WJE-MD-87 - 5
WJE-MD-87 - A
WJE-MD-87 - B
0 757-2G5 (23983, N950PT), EX-(CS-TFK) 2010-09, WITH WINGLETS. RETIRED 2017-11. 217Y.
0 757-204ER (450-26963, N901NV; 452-26964, N902NV; 26966, N903NV), BF (DEA) 2010-03. WITH WINGLETS. ALL RETIRED BY 2017-11. 217Y.
0 DC-9-21 (JT8D-11 HK) (488-47361, /69 N127NK), EX-(SAS)/(VAU), (MJG) LEASED, SOLD TO BENNIE CONATSER/PERRIS VALLEY SKYDIVING 2005-02. 89Y.
0 DC-9-51 (JT8D-17 HK) (860-47731, N410EA; 861-47732, N411EA; 864-47746, N414EA), EX-(TWA), "D" MAINTENANCE CHECK BY AVTEL 2000-07, ST (TBC) 2002-04. 20F, 95Y PAX.
O MD-81 (1194-49280, N506PT; 1200-49281, N503PT), BOUGHT FROM JALUX FOR PARTS 2009-09 & 2010-02.
0 MD-81 (1351-49461, N502PT; 2076-53300, N501PT; 2085-53302, N504PT), BOUGHT FROM JALUX FOR PARTS 2009-09.
1 MD-81 (49821, N522PT), PURCHASED FOR SPARE PARTS.
0 MD-82 (JT8D-219) (1097-49145, N203AA, 2007-07; 1087-49150, N491SH, 2004-12), EX-(AMX), BOUGHT FROM INVESTORS ASSET. 49150; PARTED OUT 2008-02. 49145; SOLD TO UNIVERSAL ASSET MANAGEMENT 2008-04. 166Y.
1 MD-82 (JT8D-219) (49245, N951U), BOUGHT FROM (TBC) 2010-06. 166Y.
0 MD-82 (JT8D-217A) (1207-49371, /85 N890GA), (GEF) LEASED 2003-07. RETURNED 2004-12. WFU AT GOODYEAR 2008-05. 166Y.
15 MD-82 (JT8D-219) (1231-49381, N422NV; 1254-49420; 49420, N428NV; 1263-49421, N424NV; 1284-49424; 1303-49436; 1345-49437; 1353-49438; 1402-49555; 1543-49615; 1625-49909; 1895-53008, N423NV; 1896-52275; 1979-53347; 1999-53366), EX-(SAS). 166Y.
1 MD-82 (JT8D-217A) (1244-49385), EX-(SE-DFT), BOUGHT FROM (SAS) FOR PARTS.
1 MD-82 (JT8D-217A) (49438, N425NV), EX-(SE-DFY), EX-(SAS). 166Y.
2 MD-82 (JT8D-219) (1445-49660, N894GA, 2007-08; 1466-49667, N895GA 2007-08), BOUGHT FROM (GEF). 166Y.
1 MD-82 (JT8D-219) (49555, N416NV, 2010-02; 49615, N418NV, 2010-02; 49909, N415NV, 2010-03; 53347, N417NV, 2010-02; 53366, N419NV, 2010-03), BOUGHT FROM (SAS). 166Y.
2 MD-82 (JT8D-219) (1754-49931, N886GA; 1756-49932, N887GA), GUSTAV LEASING LEASED 2006-12. 166Y.
1 MD-82 (JT8D-219) (53008. N423NV), EX-(SE-DIY), EX-(SAS). 166Y.
1 MD-82 (JT8D-219) (1901-53244, N407NV), RETURNED FROM (NWG) 2009-05, EX-(SE-RFD). 166Y.
1 MD-82 (JT8D-219) (1918-53246, /91 N408NV), RETURNED FROM (NWG) 2008-11. 166Y.
1 MD-82 (JT8D-219) (1978-53245, N411NV), BOUGHT FROM AERCO LTD 2009-01. 166Y.
1 MD-83 (JT8D-219) (1357-49401, N884GA), BOUGHT FROM (SAS) 2007-10. 166Y.
7 MD-83 (JT8D-219) (1283-49423, /86 N891GA, 2003-09; 1379-49554, N868GA, 2004-12; 49909, N415NV; 1638-49910, N-866GA 2005-01; 1653-49911, /89, N863GA, 2003-11; 1659-49912, /89, N864GA 2004-02; 1800-49998, N865GA), BOUGHT FROM (SAS). 49554; PAINTED AS LOGOJET WITH "bodog.com." 166Y.
1 MD-83 (JT8D-219) (1359-49461, N502PT), 2009-09 FOR PARTS.
5 MD-83 (JT8D-219) (1415-49556, /88 N862GA; 1436-49557, /88 N861GA; 1800-49998, N865GA, 2005-10; 1922-53295, N872GA, 2005-06; 1937-53296, N871GA), EX-(SAS), WELLS FARGO LEASED, 166Y.
1 MD-83 (JT8D-219) (1413-49574, /87), BOUGHT FROM (NOQ) 2009-09, EX-(SE-RDV). 166Y.
2 MD-83 (JT8D-219) (1423-49643, N874GA, 2005-10; 1461-49658, N873GA, 2005-06), EX-(AMX), (GRB) LEASED. 166Y.
2 MD-83 (JT8D-219) (1499-49623, /88 N405NV; 1765-49900), BOUGHT FROM (NOQ) 2008-12. 166Y.
3 MD-83 (JT8D-219) (1503-49706, N880GA, 2006-06; 1561-49708, /89 SE-RGO, 2006-05; 1547-49710, /93, 2006-05), EX-(FIN), BOUGHT FROM NOVUS AVIATION 2006-05. 49708; & 49710; RF (NOQ) 2006-10. 166Y.
1 MD-83 (JT8D-219) (1578-49826, N892GA), (TIA) LEASED 2007-08. 166Y.
1 MD-83 (JT8D-219) (1631-49786, /89 N860GA), WELLS FARGO LEASED 2002-10. 166Y.
1 MD-83 (JT8D-219) (2044-49965), EX-(SE-DLV), BOUGHT FROM (NOQ) 2009-10. 166Y.
1 MD-83 (JT8D-219) (1718-53051, N893GA), (TIA) LEASED 2007-08. 166Y
1 MD-83 (JT8D-219) (1917-53249, N869GA). 166Y.
4 MD-83 (JT8D-219) (2102-53467, N877GA; 2114-53468, /95 N875GA; 2116-53469, /95 N876GA; 2130-53486, /96 N879GA), EX-(JTG)/(ROY), (TBC) LEASED. 166Y.
1 MD-83 (JT8D-219) (2132-53487, N878GA), (TBC) LEASED 2005-11. 166Y.
1 MD-87 (JT8D-219) (1457-49585, N214AM), BOUGHT FROM (PSS) 2009-04, FOR PARTS.
5 MD-87 (JT8D-219) (1556-49614; 1572-49608; 1705-49610; 1827-49612; 1985-53348), EX-(SAS) FOR PARTS.
1 MD-87 (JT8D-219) (1508-48673, N673HC), BOUGHT FROM AEROUSA 2007-08. 130Y.
1 MD-87 (JT8D-219) (1525-49405, N205AM), BOUGHT FROM (PSS) 2009-04 FOR PARTS.
1 MD-87 (JT8D-219) (1681-49413, N399NV), BOUGHT FROM (PSS) 2009-03 FOR PARTS. EX-(XA-TXH).
2 MD-87 (JT8D-219) (1552-49725, /88 N945MA; 1646-49778, /89 N948MA), EX-(MIB), INTERLOCUTORY LEASED 2002-01. 130Y.
0 MD-87 (JT8D-219) (1610-49726, N803ML), BOUGHT 2009-07 FOR PARTS.
1 MD-87 (JT8D-219) (1670-49779, /89 N751RA), EX-(AMX), (TCI) LEASED 2005-12. 130Y.
2 MD-88 (JT8D-219) (1606-49759, N412NV; 1657-49766, N414NV), (GEF) LEASED 2009-02. 130Y.
4 MD-88 (JT8D-219) (1623-49761, N401NV, 2007-11; 1626-49763, N402NV, 2007-12; 1632-49764, N403NV, 2008-06; 1645-49765, N162PL, 2008-04), BOUGHT FROM POLARIS. 130Y.
6 ORDERS A319:
0 A319 (CFM56-5B), (GEF) LEASED, EX-(EZY), 9 RETURNED.
0 A319-100 (CFM), EX-(EZY) 2016-03, SUNSET ASSET MANAGEMENT LSD. RETURNED.
1 A319-111 (CFM) (2625, N331NV), EX-(RP-C3191) EX-CEBU PACIFIC AIR (CEB) 2016-09. 150Y.
13 A319-112 (2450, N308NV), EX-(G-EZIF) 2015-12.
3 A319, 156Y.
13 ORDERS (2019-02) A320 (CFM56-5B) (/09) (ALAFCO) AVIATION LEASE & FINANCE COMPANY 12 YEAR LEASED, 186Y:
7 ORDERS A320, 186Y:
3 A320-200 (CFM56), 177Y.
6 A320-214 (CFM56), EX-(IBE), 177Y.
2 A320-214 (CFM56-5B4) (0706, N225NV; 0745, N226NV), 2015-08. 177Y.
2 A320-214 (CFM56-5B4) (1171, N231NV; 1372, N230NW), EX-(EC-LVA & EC-LVC) TO SUNRISE ASSET MANAGEMENT 2017-02. 177Y.
3 A320-214 (CFM56-5B4) (1210, N232NV; 1255, /00 N219NV; 1347, /00 N217NV), EX-(EC-HSF, EC-HUL, EC-LVB), EX-(IBE) 2013-06. 177Y.
1 A320-214 (CFM56-5B4) (1292, N215NV), EX-(EC-HUJ). 177Y.
1 A320-214 (CFM56-5B4) (1467, N234NV), EX-(AP-EDD) 2015-11. 177Y.
1 A320-214 (CFM56-5B4) (1694, N224NV), EX-(EC-IEI). 177Y.
Click below for photos:
WJE-1-ANDREW LEVY - 2013-09-A
WJE-1-ANDREW LEVY - 2013-09-B
WJE-1-ANDREW LEVY - 2013-09-C
MAURY GALLAGHER JR, CHAIRMAN & CHIEF EXECUTIVE OFFICER (CEO).
Maurice J Gallagher, Jr has been actively involved in the management of the company since he became the majority owner and joined the board of directors in June 2001. He has served as the (CEO) since August 2003. Prior to his involvement with Allegiant (WJE), Maury devoted his time to his investment activities, including companies which he founded. One of these companies was Mpower Communications M Corp, a telecommunications company, for which he served as acting (CEO) from 1997 to 1999 and as Chairman of the board from its inception in 1996 until March 2002. Maury was 1 of the founders of ValuJet Airlines, Inc (VAU) (1 of the predecessors to AirTran Airways (CQT)) and served as an officer and director of (VAU) from its inception in 1993 until 1997. From 1983 until 1992, he was a principal owner and executive of WestAir, a commuter airline.
MITCHELL ALLEE, FOUNDER.
DECLAN RYAN, FOUNDER & CHAIRMAN IRELANIA AVIATION:
Declan specializes in developing low cost carrier (LCC)s and has 6 around the world: Ryanair (RYR), Allegiant (WJE), Tigerair (TGR), VivaAerobus, VivaColombia and most recently Viva Air Peru. Combined, the airlines have a fleet of >420 aircraft.
JOHN REDMOND, PRESIDENT (2017-02).
SCOTT SHELDON, CHIEF FINANCIAL OFFICER (CFO) (2010-05) & EXECUTIVE VP (2017-02).
Scott has oversight of (WJE)’s In-flight & Operation Control Center (OCC), in addition to his current Finance, Procurement and Customer Operations duties.
JUDE BRICKER, CHIEF OPERATING OFFICER (COO) (2016-01) & EXECUTIVE VP (2017-02).
Jude was assigned oversight of Flight Operations, Maintenance & Safety, in addition to his current Network & Fleet Strategy role.
SCOTT ALLARD, CHIEF INFORMATION OFFICER (CIO), EX-(SPR) (2011-01) & EXECUTIVE VP (2017-02).
Prior to his 9 years as (CIO) at Spirit Airlines (SPR) Scott Allard served as Head of Technology at Travelworm and previously held technology management positions at such noted companies as American Express and Priceline, where he led all of the company's Crew Resource Management (CRM) efforts both domestically as well as in Europe and Asia. Scott is an industry leader in high-growth companies as well as the travel space.
MICHAEL REICHARTZ, SENIOR VP MARKETING (2011-06).
LUKAS JOHNSON, SENIOR VP COMMERCIAL.
GREG ANDERSON SENIOR VP & PRINCIPAL ACCOUNTING OFFICER (2017-02).
TRENT PORTER, SENIOR VP FINANCIAL PLANNING (2017-02).
ROB WILSON, SENIOR VP SYSTEMS (2017-02).
GREG BADEN, VP FLIGHT OPERATIONS SYSTEMS OPERATIONAL COMMAND (SOC), EX-MANAGING DIRECTOR FLYING, DELTA AIR LINES (DAL) (2011-01).
ERIC GUST, VP OPERATIONS.
Eric was previously VP Safety & Security.
GREG REHWALDT, VP STATIONS (2011-01).
BRIAN DAVIS, VP MARKETING.
TOM DOXEY, VP FLEET & CORPORATE FINANCE.
JAMES SCHMIDT, DIRECTOR CHARTER SALES.
MICHAEL DEVINCENZI, DIRECTOR OPERATIONS.
GARY CLARKE, DIRECTOR SAFETY.
MS JESSICA WHEELER, PUBLIC RELATIONS (PR) MANAGER.