Tag Archives: Allegiant Air

Allegiant and Vegas Golden Knights announce multi-year partnership agreement

Ex EC-HHA, delivered on April 20, 2018

Allegiant Air and the Vegas Golden Knights announced today an unprecedented multi-year partnership, designating Allegiant as the “Official Domestic Airline Partner of the Vegas Golden Knights.”  The partnership – in Allegiant’s hometown of Las Vegas – promises to engage hockey fans across North America through key activations and sponsored content.

In addition to the exclusive designation as the “Official Domestic Airline Partner of the Vegas Golden Knights,” Allegiant will engage hockey fans at various touchpoints throughout T-Mobile Arena, through on-site activations on Toshiba Plaza and via digital and social media. Fans can expect big fun from Allegiant throughout the season including Vegas Golden Knights tickets and autographed gear giveaways and much more.

The Vegas Golden Knights are a National Hockey League franchise owned and operated by Black Knight Sports and Entertainment LLC. The Vegas Golden Knights were established by founding partners William Foley and his family and the Maloof family.

Copyright Photo: Allegiant Air Airbus A320-214 N214NV (msn 1221) (Vueling colors) BWI (Tony Storck). Image: 943456.

Allegiant Air aircraft slide show:

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Allegiant to add 9 new routes and three new destinations

Allegiant Air has announced it will add nine new routes and three new cities to its route map.

Full details coming.

Allegiant reports its second quarter results

Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Brian McDonough). Image: 941699.

Allegiant Travel Company has reported the following financial results for the second quarter 2018, as well as comparisons to the prior year:

Three Months Ended
June 30,
Six Months Ended
June 30,
Unaudited 2018 2017 Change 2018 2017 Change
Total operating revenue (millions) $ 436.8 $ 401.8 8.7% $ 862.2 $ 781.9 10.3%
Operating income (millions) 74.2 85.8 (13.5) 154.2 159.5 (3.3)
Net income (millions) 50.0 49.0 2.0 105.2 91.4 15.1
Diluted earnings per share $ 3.10 $ 2.97 4.4 $ 6.52 $ 5.51 18.3

“We are proud to announce our 62nd consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., chairman and CEO of Allegiant Travel Company. “This is the second consecutive quarter of EPS growth, despite seeing our fuel cost per gallon increase by over 39 percent in the second quarter. This is a wonderful testament to the hard work of our team members as we navigate another busy summer.

“We are continuing our transition to an all-Airbus fleet. We have done an excellent job year-to-date but this summer was the critical period in this transition, including the timely delivery and induction of fifteen Airbus aircraft, and retirement of six MD-80s.

Today we are on our schedule as planned, though some delayed deliveries in late May impacted our peak June period, in terms of top line and operations reliability.  Looking forward, we should complete our transition at the end of November as scheduled.

“Our CASM-ex fuel results came in nicely. Our improved operational results as well as efficiencies from the Airbus fleet are beginning to pay dividends, and we are pleased with where the cost trend line is headed. Additionally, fuel efficiency continues to improve with the transition, with 76 vs. 72 ASMs per gallon this year compared to the same period last year.

“The Sunseeker resort project continues to move ahead. We are closing in on a financing plan and hope to announce the specifics in the next 60 to 90 days. We continue to be impressed with the many synergies and business alignments between Sunseeker and our air service presence on the west coast of Florida. Our Punta Gordadestination – a 15 minute drive from our Sunseeker location, grew over 30 percent in capacity on a trailing twelve month basis. We are on a pace to carry over 1.5 million passengers in and out of Punta Gorda this year.”

Shareholder returns

  • 2018 shareholder returns – over $22 million in the first half of the year through dividends
    • Will pay dividends of $0.70 per share on August 31, 2018 to shareholders of record as of August 17, 2018
    • Current share repurchase authority of $100 million as of July 25, 2018

2018 outlook

  • Third quarter scheduled and system ASMs are expected to grow between thirteen and fifteen percent vs last year
  • 2018 full year ASM growth is expected to be between nine and eleven percent due to slower than expected aircraft deliveries
  • 2018 fuel cost is expected to be $2.35 per gallon using the forward curve as of July 24, 2018
  • 2018 EPS is expected to be between $9 and $10 per share due to the expected higher fuel cost
    • Fuel expense is expected to increase approximately $35 million from when guided in November 2017
Guidance, subject to revision
Full year 2018 guidance Previous* Current
Fuel cost per gallon $2.20 $2.35
Available seat miles (ASMs) / gallon 77.5 to 79.5 77.5 to 78.5
Interest expense (millions) $50 to $60 $50 to $60
Tax rate 21 to 22% 21 to 22%
Share count (millions) 15.9 15.9
Earnings per share $10 to $12 $9 to $10
System ASMs – year over year change 11 to 15% 9 to 11%
Scheduled service ASMs – year over year change 11 to 15% 9 to 11%
Depreciation expense / aircraft / month (thousands) $120 to $130 $115 to $120
Maintenance expense / aircraft / month (thousands) $95 to $105 $80 to $85
Full year 2018 CAPEX guidance
Capital expenditures (millions) ** $300 $300
Capitalized Airbus deferred heavy maintenance (millions) *** $45 $45
* – Previous guidance as of April 25, 2018
** – Excludes Sunseeker Resorts
*** – Not included in capital expenditure total
Aircraft fleet plan by end of period
Aircraft – (seats per AC) 1Q18 2Q18 3Q18 YE18
MD-80 (166 seats) 32 27 19
A319 (156 seats) 26 31 31 32
A320 (177/186 seats) 30 35 44 45
Total 88 93 94 77
Aircraft listed in table above include only in-service aircraft, planned retirements and future aircraft under contract (subject to change)

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Brian McDonough). Image: 941699.

Allegiant Air aircraft slide show:

Allegiant and Minor League Baseball announce multiyear national partnership

Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Tony Storck). Image: 941921.

Allegiant Air and Minor League Baseball™ announced a national partnership agreement designating Allegiant as the “Official Airline of Minor League Baseball.” With more than 115 current overlapping markets in the U.S., the hometown airline of cities across the country is now the official airline of America’s hometown baseball teams.

In addition to the designation as the “Official Airline of Minor League Baseball,” Allegiant will engage with fans through various touchpoints in the ballpark as they cheer on their favorite MiLB teams. At select games, fans can participate in Friday Fly Away giveaways for a chance to win nonstop flights to great destinations all across the U.S. Allegiant will also serve as the naming rights partner of a digital advertising network that spans multiple MiLB markets across the country.

Other aspects of the partnership consist of inclusion in the MiLB Charities CommUNITY initiative, an ongoing program to promote unity, understanding, acceptance and inclusion at MiLB ballparks, and serving as a Presenting Partner at the 2018 Baseball Winter Meetings, the largest gathering of baseball executives in the country, December 9–13, in Las Vegas.

Top Copyright Photo (all others by Allegiant): Allegiant Air Airbus A320-214 WL N248NV (msn 7781) BWI (Tony Storck). Image: 941921.

Allegiant aircraft slide show:

Allegiant: The company seeks “federal court order to quash Teamsters’ unlawful pilot strike threat”

Allegiant has issued this statement:

Allegiant today announced the company is seeking a court order affirming that a pilot strike threat recently announced by International Brotherhood of Teamsters (IBT) Local 1224 is unlawful.  The company has filed a complaint in United States District Court, District of Nevada, requesting a Declaratory Judgment affirming that pilots represented by the Teamsters may not strike as a remedy for a dispute over the timeline of negotiating an agreement on and implementing a new preferential bidding system.  Under both the Railway Labor Act (RLA) and the collective bargaining agreement (CBA) between IBT and Allegiant, the IBT does not have a legal right to strike under these circumstances. Rather, this matter is considered a “minor dispute,” requiring resolution through the grievance and arbitration procedures of the CBA and the RLA.

“It’s unfortunate the union would utilize an unlawful strike threat during the peak summer travel season for what is ultimately considered a ‘minor dispute’ under the RLA.  Our customers look forward to long-planned vacations and the IBT’s unnecessary actions have resulted in many of our customers thinking their travel plans are at risk,” said Scott Sheldon, Allegiant executive vice president, COO and CFO. “The Teamsters have left us no choice but to take this action.”

The current collective bargaining agreement between IBT and Allegiant calls for an agreement on the software requirements for a preferential bidding system, which schedules pilots for flying by taking into consideration their personal preferences for such elements as days of week and times of day they like to fly – and ranks those preferences by seniority.  The IBT’s selected PBS vendor, Crewing Solutions, has been working towards making changes to its program required for implementation at Allegiant.

“The preferential bidding system, in its current form, doesn’t support the CBA as agreed upon by the company and the IBT,” said Sheldon. “The company has already committed a significant amount of time and resources to fulfilling our obligation under the CBA by customizing the PBS solution of the IBT’s choice.  The final build specifications have been outlined and are under development by Crewing Solutions. We hope to have the final product ready for deployment in the near future.”

Allegiant pilots scheduled for flying duty currently work an average of 58 hours per month, with an average of 14 days off per month.  In addition, Allegiant flies a unique “out-and-back” system where pilots return to their home base after each day of flying, and only rarely have an overnight away from home.

“We are in the process of customizing our SmartPref bidding software to meet the submitted requirements of Allegiant’s pilots,” said James Fasso, CEO of Crewing Solutions.  “Crew scheduling software is highly sophisticated and complex by nature, and requires specific customizations to match the needs of each particular client, and to properly integrate with the company’s other systems.  We are pleased to be the IBT’s scheduling software of choice, and we have been, and continue to be committed to working with both Allegiant and its pilots to deliver a product that not only meets every requirement but provides enhanced functionality and efficiency for all involved.”

Teamsters: Pilots vote to authorize strike at Allegiant Air

Allegiant Air Airbus A320-214 WL N247NV (msn 7704) BWI (Tony Storck). Image: 941920.

The International Brotherhood Of Teamsters issued this statement:

Pilots at Allegiant Air—one of the country’s most profitable airlines—voted with 93.5 percent support to authorize a strike should it become necessary.

The vote comes in response to Allegiant’s years-long refusal to live up to its commitments and fix a sham scheduling system that has negatively impacted the lives of many pilots and their families.

Voting took place over a one-week period from June 29 to July 6 and was conducted online via a third-party election management provider.

A strike could result in cancellations out of major hubs including Las Vegas, Phoenix and Fort Lauderdale and impact thousands of passengers.

An airline that has made headlines for its bare minimum approach to business, Allegiant made the unilateral decision to force its pilots to use a homemade scheduling system that goes against industry standards and disregards pilots’ seniority and preferences—often upending pilots’ planned time away with their families. A growing number of Allegiant pilots have been leaving the company for other airlines that respect the basic needs and interests of pilots.

“We are people with spouses and children, not cells on a spreadsheet that Allegiant executives can move around with no rhyme or reason,” said Captain Andrew Robles, an Allegiant Air pilot and Executive Council Chairman at the pilots’ union, the Airline Pilots Association, Teamsters Local 1224. “Striking is a last resort, but we’ll do whatever it takes to hold Allegiant to its promises and to make our airline the best it can be for our pilots, our families and our passengers.”

Allegiant pilots have been raising concerns about the scheduling system for years. In 2016, the pilots and Allegiant reached an agreement requiring that they negotiate and implement a new system within 180 days. Allegiant has again stonewalled that negotiation process and recently backed out of its prior agreements with the pilots over terms for the new scheduling system.

Allegiant customers have felt the effects of the company’s bare minimum approach to business. In June, Allegiant canceled dozens of flights in and out of major airports across the country after Allegiant failed to deliver Airbus planes on time, affecting thousands of passengers’ travel plans.

“Allegiant has a long track record of breaking its commitments to its pilots and we’ve had enough. Allegiant executives are acting in complete and utter bad faith in failing to negotiate a fair, industry-standard scheduling system,” Captain Robles said.

Photo: Allegiant Air.

Allegiant Air is one of the most profitable commercial airlines in the U.S. with 60 consecutive profitable quarters. Its executives are among the highest compensated in the industry, with the company CEO – and largest shareholder – taking home tens of millions in shareholder returns in recent years. The company enjoyed a $74 million windfall as a result of the recent tax bill.

Top Copyright Photo: Allegiant Air Airbus A320-214 WL N247NV (msn 7704) BWI (Tony Storck). Image: 941920.

Allegiant aircraft slide show:

Allegiant announces dispatchers fail to ratify tentative agreement with International Brotherhood Of Teamsters

Allegiant Air Airbus A319-111 N337NV (msn 2170) LAX (Michael B. Ing). Image: 942450.

Allegiant Air has announced that its dispatchers represented by the International Brotherhood of Teamsters (IBT) have failed to ratify a proposed collective bargaining agreement with the company.  The tentative agreement brought by IBT to its members was reached between the parties on May 22, 2018.

“Achieving a first contract with our team of dispatchers is an important step for the company,” said Maury Gallagher, Allegiant chairman and chief executive officer. “We stand ready to go back to the negotiating table, receive feedback on any outstanding issues, and look at our next steps together.”

“Our team of dispatchers is at the core of Allegiant’s operations – they keep our flights, crews and passengers moving safely and efficiently in real time,” said Michael Wuerger, Allegiant vice president, Operations Control Center. “We appreciate the dedication they bring to work each day and remain committed to supporting their efforts.”

The process of negotiating a first collective bargaining agreement for Allegiant dispatchers began in 2017. The International Brotherhood of Teamsters was most recently certified as the group’s exclusive representative on October 26, 2016. Allegiant currently employs 34 flight dispatchers.

Top Copyright Photo (all others by Allegiant Air): Allegiant Air Airbus A319-111 N337NV (msn 2170) LAX (Michael B. Ing). Image: 942450.

Allegiant Air aircraft slide show: