Category Archives: Allegiant Air

Allegiant’s President and COO Andrew C. Levy steps down

Allegiant (Las Vegas) announced Andrew C. Levy, President and COO of Allegiant Travel Company, has resigned from his executive positions with the company and will step down from the Allegiant board.

For the past 13 years, Mr. Levy has led Allegiant in a variety of roles, including most recently as President, Chief Operating Officer and Board Member and previously as Managing Director and Chief Financial Officer. During his tenure, Allegiant has grown from a single aircraft company to a billion dollar leader in the leisure travel space that has posted 46 consecutive profitable quarters.

Mr. Gallagher and the executive team will temporarily assume his duties while Allegiant, in conjunction with its Board of Directors, identifies Mr. Levy’s successor. Mr. Levy will continue to serve as an advisor to the company for the next several months.

In accordance with Mr. Levy’s separation agreement 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.

According to Bloomberg Businessweek, “Mr. Andrew C. Levy has been the President of Allegiant Travel Company since October 2009 and has been its Chief Operating Officer and a Director since October 21, 2013. Mr. Levy has been the Chief Financial Officer of Allegiant Air, LLC. since August 2007 and also has been its President served as its since October 2009. Mr. Levy served as Managing Director of Planning and Secretary at Allegiant Travel Co. until October 2009, and as its Chief Financial Officer since October 18, 2007 until May 2010. He served as Managing Director of Planning of Allegiant Air, LLC. Mr. Levy joined Allegiant in June 2001 and is responsible for Allegiant Travel Co. market planning, fleet planning, scheduling, fuel risk management, fuel purchasing and corporate development. From February 1998 to March 2001, Mr. Levy served various management positions at Mpower Communications, Savoy Capital and ValuJet Airlines. From July 1996 to February 1998, Mr. Levy served on Airline Advisory and Transactional as Vice President with Savoy Capital. From 1994 to 1996, Mr. Levy served various positions with ValuJet Airlines including Director of Contracts and was responsible for stations agreements, insurance, fuel purchasing and other related activities.”

Allegiant Air’s pilots allege pilot attrition is accelerating at the company

Allegiant Air‘s (Las Vegas) pilots, represented by the Airline Professionals Association Teamsters Local 1224, have issued this statement:

Pilot attrition is accelerating at Allegiant Air as pilots, even senior captains with many years invested, have been leaving in increasing numbers for companies luring them with better and safer operations, better working conditions, better schedules and increased compensation and benefits packages.

A significant number of pilots have recently left and more indicate they are planning to leave Allegiant Air in pursuit of greener pastures. Flights have been cancelled and Allegiant Air continues to deploy sub service due to a lack of crews to fly their airplanes. The airline’s management and investors should equally be concerned with pilot attrition, as it has a direct impact on the operation.

Not only is Allegiant Air having trouble retaining qualified pilots, but the management team is struggling to replace the losses by attempting to hire from a dwindling pool of qualified candidates who, once exposed to the realities of employment at Allegiant Air and the difficult relationship with an anti-union management team, often elect to leave as well.

Even as the number of new hires replacing former pilots at the airline is steadily climbing, some new hires elect not to show up for training.

The accelerating loss of pilots is not a sustainable model for the company, it’s not favorable for shareholders, and it certainly doesn’t offer perks for the remaining pilots on payroll. Already flying full schedules, some of the remaining pilots are finding themselves forced into covering additional flights, keeping them away from home for weeks and even months at a time.

The pilots, and the union representing them, are urging the management team to address the underlying conditions at the root of the crew shortage.

“Addressing several key issues would go a long way towards stemming the company’s losses,” said Teamsters Local 1224 President Daniel Wells, speaking on behalf of the Allegiant Air pilots. “The Teamsters have presented the company with a comprehensive proposal, to which they have refused to reply. The proposal addresses key and legitimate concerns held by the Allegiant Air pilots. An honest effort by the company to reach an agreement during contract negotiations would have a positive effect, stem the unsustainable losses they are experiencing, and allow the company to succeed going forward.”

In August 2012 the pilots overwhelmingly voted for Teamster representation. Following the union vote, working conditions at Allegiant Air began to plummet. Many pilot benefits were reduced below prior negotiated levels, resulting in a lawsuit and a court-ordered injunction against the company which directed Allegiant Air to restore benefits to previous levels.

“We want to work with the management team at Allegiant Air to build an airline where pilots will want to come and stay,” said Wells. “It’s time to stop spending money fighting in Federal Court and blaming government regulatory agencies for operational challenges.”

The pilots have taken their concerns to management and repeatedly extended their assistance to help Allegiant Air become a sustainable, successful airline. However, offers for a team effort and support from the pilots are met with disregard and disdain.

The union has begun surveying pilots who are leaving Allegiant Air in order to best identify and trend the causal factors leading to a pilot’s decision to leave. As soon as enough statistical data has been documented to ensure sound statistics, the pilots intend to present the data to their management team in another effort to stem meaningful change.

The Airline Professionals Association Teamsters Local 1224 is affiliated with the International Brotherhood of Teamsters Airline Division and represents nearly 4000 members among 11 air carriers that operate both passenger and cargo aircraft. Local 1224 is the certified bargaining unit that represents all flight crew members employed by ABX Air, Inc., Allegiant Air, Atlas Air, Inc., Brendan Airways, LLC, Horizon Air Industries, Inc., Hyannis Air Services, Inc., Kalitta Air, LLC, Kalitta Charters II, LLC, Miami Air International, Omni Air International, Silver Airways Corporation, and Southern Air, Inc.

Allegiant has not yet responded with a public statement.

Copyright Photo: Jay Selman/AirlinersGallery.com. Allegiant Air McDonnell Douglas DC-9-83 (MD-83) N881GA (msn 49708) arrives at the Las Vegas base.

Allegiant Air:

Allegiant Air hosts The Game Plane, a new in-flight TV game show

Allegiant Air (Las Vegas) announced, in partnership with Alpine Labs, the premiere of THE GAME PLANE, the world’s first game show to be filmed entirely in-flight with real passengers competing in real time to win prizes on the spot.

Part quiz show, part game of chance, THE GAME PLANE features Allegiant passengers on their way to vacation, competing for thousands of dollars in prizes, including all expenses-paid vacations at Las Vegas’ most popular luxury resort properties, airfare to Honolulu on Allegiant, Las Vegas show tickets and more. THE GAME PLANE is produced by Alpine Labs and filmed in-flight on Allegiant scheduled service.

“Allegiant prides itself on being an innovator in the airline industry, so the opportunity to be a part of the first-ever in-flight game show is a perfect fit,” said Brian Davis, Allegiant Travel Company Vice President of Business Development. “The energetic, fun atmosphere of the show is an extension of our vacation-focused brand, and the amazing prizes won by the contestants — our passengers — highlight all of the amazing things our destinations have to offer.”

“We are thrilled to partner with Allegiant on this amazing opportunity to showcase a whole new setting for the game show,” said Alpine’s Kevin Abrams. “Our goal is to remind viewers how much fun going on vacation is and that there are still exciting new ways to visit the game show format. THE GAME PLANE is an example of how we are introducing an original take on production.”

The show will premiere on September 20, 2014 and will air in over 75 percent of U.S. television markets on a syndicated network of stations led by the CBS Television Stations group.

Copyright Photo: Alpine Labs. Host Mark L. Walberg started his television career as an assistant at Dick Clark Productions and quickly moved in front of the camera as the announcer for the popular game show Shop Til You Drop and then as host of Burnt Toast, a sports magazine show on ESPN. It was there that the late Brandon Tartikoff noticed his work, and that association produced the nationally syndicated The Mark Walberg Show. Since then, Walberg has hosted and been featured in an array of popular talk, reality competition, and game shows, including the FOX hit The Moment of Truth. He also has hosted home improvement competitions The Mansion and House Rules, knowledge quiz shows Test the Nation and Russian Roulette, and won The Weakest Link as a contestant playing for charity. He also hosted the relationship challenge Temptation Island. Realizing a long-held ambition to produce, Walberg created and produced Sunday Dinner, the first original series for the Odyssey Network, with long-time friend and television personality Mark DeCarlo (Curb Your Enthusiasm, Jimmy Neutron).

In addition to his successful television career, Walberg believes strongly in devoting time to create opportunities for young people. Currently he is on the board of directors of Goodwill of Southern California. He’s proud to be part of an organization that is instrumental in providing hope and new futures for people who need help. He also is very involved with The Young Americans, a musical performance youth group that tours the world offering music workshops in underserved schools. In addition to Walberg, alumni include actor Tim Bagley (Grimm) and actress Nia Peeples (The Young and the Restless) He has completed production on a feature-length documentary about The Young Americans’ work. Says Walberg, “The personal transformation that happens to people when they are given the ability to express themselves through the arts, specifically music and dance, is inspiring.”

Allegiant Air:

Allegiant Air is dropping Bellingham-Hawaii service

Allegiant Air (Las Vegas) will not be renewing Hawaii service from Bellingham, Washington this coming winter according to the Bellingham Herald. The airline has reduced its full-year Hawaiian flying from Honolulu to only two mainland points; the Las Vegas base and Los Angeles. Other destinations (Boise, Eugene, Fresno, Mesa, Spokane and Stockton) will continue to have seasonal service to Honolulu but the number of flights has been dropping since the peak.

Read the full report: CLICK HERE

Allegiant Air:

Allegiant to charge for the printing of a boarding pass at the airport

Allegiant Air (Las Vegas) has announced a new initiative to encourage paperless boarding throughout its network, saving passengers time and money. Beginning tomorrow, September 2, 2014, customers who require the assistance of a ticket agent to print their boarding pass at the airport will pay a $5 charge per boarding pass printed. Customers who use a mobile boarding pass on their mobile device or tablet, or check-in online and print their boarding pass at home will save themselves the small fee, while helping the carrier keep fares low and ticket lines short.

Throughout 2013, Allegiant worked with many small and mid-size airports throughout its system to introduce mobile boarding pass scanners at the security checkpoints in every airport the carrier serves. Fifty-five of the airports Allegiant serves did not previously have scanners in place. Allegiant purchased scanners for these airports, worked with the airports and TSA to have them approved and installed and reached out to other carriers serving the airports to ensure that the mobile boarding pass scanners the company installed could be used by other airline passengers.

Travelers can avoid paying $5 to have their boarding pass printed at the airport by checking-in online or on the Allegiant2Go mobile app and using express bag drop or proceeding directly to the gate. Through the Allegiant2Go mobile app, available for free on Apple and Android mobile devices, customers may check-in for their flight 24 hours prior to scheduled departure, add seat assignments, priority boarding or additional baggage and receive their boarding pass directly on their phone or tablet. The mobile boarding pass option will save travelers the time and trouble of waiting in ticket counter lines.

This charge does not apply to passengers who are ineligible for advance check-in such as passengers traveling with pets in the cabin, or to passengers with disabilities who are unable to print or download boarding passes.

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N881GA (msn 49708) departs from Las Vegas.

Allegiant Air:

Allegiant announces five new routes to Florida

Allegiant Air (Las Vegas) has announced new, nonstop jet service on five new Florida routes, including one route each to Punta Gorda and Sanford (near Orlando) and three to St. Petersburg/Clearwater (Tampa Bay).

New routes announced include:

Nonstop service to St. Petersburg-Clearwater International Airport (PIE) from:

Belleville, Illinois – begins November 19, 2014
Bloomington, Illinois – begins November 21, 2014
Concord, North Carolina (near Charlotte) – begins November 13, 2014

Nonstop service to Orlando-Sanford International Airport (SFB) from:

Peoria, Illinois – begins November 14, 2014

Nonstop service to Punta Gorda Airport (PGD) from:

Huntington, West Virginia – begins Nov. 20, 2014

Allegiant differs in many ways from other U.S. airlines. The company is focused on low-cost, nonstop leisure travel, providing customers with low base fares while giving passengers the option to pay for the amenities they want, like luggage, seat assignments and priority boarding, without including the cost of things they don’t need in the price of the ticket.

Allegiant’s innovative business model has allowed it to grow from one airplane and one route 15 years ago, to offering access to low-cost, nonstop travel in more than 90 communities nationwide. This year, Allegiant has inaugurated service on 16 new routes to popular U.S. vacation destinations. Additionally, the company recently announced its 46th consecutive quarter of profitable operation while keeping its average one-way fare under $100.

Copyright Photo: Keith Burton/AirlinersGallery.com. The Airbus A319s and A320s are based at Sanford. Former easyJet Switzerland Airbus A319-112 HB-JZN (man 2387) became N302NV with Allegiant.

Allegiant:

Routes from Sanford. Allegiant operates nonstop routes to SFB from small underserved markets from the eastern half of the United States to the vacation Orlando area destination.

Allegiant announces Cincinnati-Las Vegas flights

Allegiant Air (Las Vegas) today announced new, nonstop service from Cincinnati to Las Vegas beginning on December 18.

The new flights will operate twice weekly between the Cincinnati/Northern Kentucky International Airport (CVG) and Las Vegas McCarran International Airport (LAS) beginning on Thursday, December 18, 2014. This announcement brings the total number of destinations served by Allegiant from CVG to seven, including service to Fort Lauderdale/Hollywood and Mesa (near Phoenix) announced just last month.

Copyright Photo: Jay Selman/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N424NV (msn 49421) departs from Las Vegas McCarran International Airport.

Allegiant:

Allegiant announces its 46th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) reported net income of $33.5 million for the second quarter 2014, ending on June 30, up 29.8 percent from the previous second quarter net profit of $25.8 million in 2013.

“We are very proud to report our 46th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “We have been working very hard to mitigate the crew training issues that have impacted us in 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. On a much more positive note, in June we completed multiple aircraft transactions to add 14 additional aircraft to our future fleet and raised $300 million of debt in the high yield market with very competitive terms. We could not have done this without the tremendous effort of our Team Members.”

Notable company highlights:

Increased operating margin, EBITDA margin and return on capital employed versus the same time last year

Acquired 12 incremental A319 Airbus aircraft for delivery in 2018. See table below for financial impact of this transaction

Signed agreements to acquire one A320 and one A319 to be in service in 2015 and 2016, respectively

Entered into a letter of intent to purchase eight A319s, previously committed to under operating leases.

Two of these are currently under operating lease to Allegiant, one is expected to be delivered in 2014 and five are expected to be delivered in 2015

In-service Airbus fleet of 10 aircraft accounted for 21.9 percent of total ASM production during the quarter

Prepaid $121.1 million, 5.75 percent term loan facility due 2017

Raised $300 million, 5.50 percent senior unsecured notes due 2019, corporate rating of BB- by Standard & Poor’s and Ba3 by Moody’s

Raised $85.3 million collateralized by 53 MD-80 and six 757 aircraft

Initiated service on 12 new routes in the second quarter

Named Top-Performing Airline in North America by Aviation Week for third consecutive year. The Company also has the best five-year average score of any airline worldwide, 76.9, more than 5 points higher than the second-ranked carrier

Read the full report: CLICK HERE

Fleet Details:

Copyright Photo: The fleet will grow by 10 aircraft (mainly Airbus A319s and A320s) in the next two years while the Boeing 757s remain constant at six aircraft. Boeing 757-204 N903NV (msn 26966) is tugged off the gate at Los Angeles International Airport.

Allegiant:

Allegiant adds more routes and flights from fast-growing Cincinnati

Allegiant Air (Las Vegas) has announced new, nonstop jet service from Cincinnati-Northern Kentucky International Airport (CVG) to Fort Lauderdale/Hollywood beginning on October 9, 2014 and Mesa (near Phoenix) beginning on November 12, 2014. In addition, Allegiant will also add additional weekly flights to Sanford (near Orlando), St. Petersburg/Clearwater and Punta Gorda all in Florida.

Allegiant began its service at Cincinnati-Northern Kentucky International Airport in February 2014 with nonstop flights to Sanford. The carrier has since added nonstop flights to two additional Florida vacation destinations as well as seasonal summer service to Myrtle Beach, South Carolina. This announcement will more than double Allegiant’s footprint at CVG, increasing from seven weekly flights to 18, serving six destinations. Cincinnati is the fastest-growing origination city in Allegiant’s 15-year history, and the carrier attributes the expansion to the overwhelming demand for low-cost, nonstop flights to leisure destinations.

The new flights to Fort Lauderdale/Hollywood will operate four times weekly between Cincinnati-Northern Kentucky International Airport (CVG) and Fort Lauderdale-Hollywood International Airport (FLL). The new flights to Mesa will operate twice weekly between Cincinnati-Northern Kentucky International Airport (CVG) and Phoenix-Mesa Gateway Airport (AZA).

Copyright Photo: Ton Jochems/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) sets down at the Las Vegas base.

Allegiant:

Allegiant to add 13 Airbus A319s and one A320

Allegiant Travel Company (Allegiant Air) (Las Vegas) has announced three separate aircraft transactions for 14 additional growth aircraft and a fourth transaction for the purchase of two leased aircraft and the conversion of future operating lease obligations to forward purchases.

“We continue to find purchase transactions for high quality Airbus aircraft to secure our future growth,” said Andrew C. Levy, Allegiant Travel Company President and Chief Operating Officer. “We will now have 32 Airbus series aircraft, all owned, in our fleet by the end of 2018. We expect to use debt financing along with cash reserves to purchase these aircraft. Importantly, the additional A320/A319 aircraft are all sister ships to aircraft we currently operate. We remain active in the used Airbus market and hope to add more aircraft to our fleet during 2016 and 2017.”

The company has agreed to purchase twelve Airbus A319 aircraft currently leased to a European carrier until 2018. This purchase transaction is expected to be completed by the end of June. As each aircraft lease expires, Allegiant will transition the aircraft into its operating fleet. Allegiant expects to recognize approximately $30 million in annual lease revenue beginning in June 2014 through 2018 and plans to assume $142 million of secured debt under this transaction. The remaining two growth aircraft – one A319 and one A320 – will be purchased in 2015 and 2016 upon aircraft delivery.

The company has also agreed to purchase the two currently leased A319 aircraft in its fleet. This purchase is expected to be completed in July. The remaining six aircraft under the lease agreement executed in 2012 will be purchased at the time of delivery to Allegiant, expected to be in late 2014 through 2015.

The company expects its capital expenditures (CAPEX) to be approximately $315 million in 2014 and approximately $220 million in 2015. Upon completion of the above transactions, the company’s fleet plan will be as follows:

Airbus A319-100 (156 seats) will grow to 22 aircraft by 2018

Airbus A320-200 (177 seats) will grow to 10 aircraft by the end of 2015

Boeing 757-200 (215 seats) will remain at 6 aircraft through 2018

McDonnell Douglas MD-80 (DC-9-82s, DC-9-83s and MD-88s) (166 seats) will remain at 53 aircraft through 2018 (Allegiant is not expected to add any more MD-80s)

Overall the fleet will grow from the current 70 aircraft to 91 aircraft by 2018

This plan and guidance is subject to revision.

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Airbus A319-112 N302NV (msn 2387) prepares to touch in Los Angeles.

Allegiant Air: