Tag Archives: DC9

Allegiant Air seeks to fly to Mexico

Allegiant Air (Las Vegas) has filed an application with the U.S. Department of Transportation (DOT) to operate twice-weekly flights from Las Vegas to Hermosillo and San Jose del Cabo in Mexico. Flights, if approved, would start around June 1, 2014 according to this report by Bloomberg Businessweek.

Read the full report: CLICK HERE

USA Today has joined the growing list of media publications now praising the small city strategy of Allegiant Air which they have been flying for years.

Read their take on the carrier: CLICK HERE

Copyright Photo: Bruce Drum/AirlinersGallery.com. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) prepares to land at the Las Vegas home.

Allegiant Air:

WSJ: Allegiant Air: The Tardy, Gas-Guzzling, Most Profitable Airline in America

Allegiant Air (Las Vegas) is under the financial analysis of the Wall Street Journal in a special detailed article by Jack Nicas that explores why this fast-growing airline is the most profitable airline in the United States. This low-fare airline, which breaks most of the industry “rules”, has been off the radar screens of most of the mainstream media for a long time, except in the smaller cities where a new Allegiant route to Las Vegas, Arizona, California, Hawaii or Florida grabs local headlines. Allegiant has the “lowest costs, fullest planes and highest margins” in the United States according to this article. The secret formula, as we have detailed, is flying mostly older planes that others no longer want from cities that are too small for the others to care about to exciting vacation destinations on a limited number of peak traffic days. Allegiant Air also makes a lot of ancillary revenue from its travel packages, taking a page out of the Ryanair playbook. Allegiant aims to be the total travel package airline for the traveller. The business plan is working well.

Now Allegiant is planning to expand in Mexico. This article details the growth and its expansion plans.

Read the full article: CLICK HERE

Copyright Photo: Michael B. Ing/AirlinersGallery.com. Most airlines cannot get rid of these older, fuel-guzzling McDonnell Douglas MD-80s fast enough. Not Allegiant, they love the type and only fly their aircraft when they can make money. During mid-week, when most passengers are already at their holiday destinations, Allegiant parks most of its inefficient, fuel-guzzling fleet. Allegiant only flies when it can make money. Departing on a weekend, former SAS McDonnell Douglas DC-9-83 (MD-83) departs from Los Angeles International Airport.

Allegiant Air:

Route Map:

Video: Allegiant Air TV commercial:

Historic Photo of the Day – May 26, 2013

Continental’s Houston Proud Bird Express (Emerald Air) Douglas DC-9-14 N38641 (msn 47060) HOU (Keith Armes). Image: 912258.

Continental Airlines:

Frameable Color Prints and Posters:

United Airlines unveils a new look in celebration of 25 years at Newark Terminal C

United Airlines (Chicago) today will celebrate the 25^thanniversary of the airline’s Terminal C hub facility at Newark Liberty International Airport.

Travelers arriving and departing at Newark Liberty today will join United employees in an anniversary celebrationbetween 11 a.m. and 1 p.m. at the upper level United Airlines ticket counter, where customers will have opportunities to earn prizes, travel discounts and bonus MileagePlus miles, and see the airline’s new uniforms for the first time. The airline is also setting up a temporary exhibit during the two-hour period demonstrating how air travel has evolved since 1988.

Map of Terminal C at Newark Liberty International Airport (Port Authority of New York and New Jersey).

“We are pleased to celebrate United’s long history at our Newark hub – a premier global gateway and a powerful economic engine,” said Jeff Smisek, United’s chairman, president and chief executive officer. “We continue to make investments in our terminal facilities, our services and our people to ensure United’s Terminal C remains a great place for our customers and co-workers.”

“Thanks to the Port Authority’s strong partnership with United, Newark Liberty has become not only a world-class airport but also an important driver of economic growth, jobs and development for the entire region,” said Port AuthorityChairman David Samson. “The continued investment in Newark Liberty’s facilities will ensure that the airport, and Terminal C specifically, remains a modern, premier gateway for travelers.”

As part of the event, Smisek will outline the airline’s plans for further investments at Terminal C, including:

a redesign of the airline’s check-in facilities
installation in gate areas of flight-information displays that offer customers more detailed information about their flights
construction of a widebody maintenance hangar that economic development officials anticipate will drive $52 million in economic activity in the region
a new checked-baggage screening system.

In addition:

Nearly two dozen United pilots, flight attendants, customer service agents and ramp workers will participate in an in-terminal fashion show that will debut the new uniforms that United employees worldwide will wear beginning onJune 25. This is the first time that all employees at the new United will wear the same uniforms.
Buddy Valastro, co-owner of the Hoboken, N.J. bakery Carlo’s Bakery and star of the TLC program “Cake Boss,” will join the program to present a cake made specifically for the occasion.
At 1:15 p.m., the first Boeing 787 Dreamliner to fly from any of the three New York-area airports since the aircraft re-entered service will depart for Houston.
This afternoon, United will send photos of iconic locations throughout Manhattan via Twitter, Facebook and Instagram, meeting up with the company’s friends and followers in social media.

United in New York/Newark: The Hub for Wall Street

With more than 13,000 local employees, United is the New York area’s largest airline, offering more flights and more seats from the region to more destinations around the world than any other airline in history.

Since the first flight from Terminal C – the 6:15 a.m. departure of Continental flight 839 to Denver from gate 72 on the morning of May 22, 1988 – flights to and from the facility have enabled investment and economic development for theNew York metropolitan area, including Newark. In 1988, Continental offered service to 57 airports from Newark Airport.United today offers more than 400 flights each day from Newark Liberty to more than 150 destinations in North andSouth America, Europe, the Middle East and Asia, giving New York-area travelers more flights and more destinations via United and United Express than any other airline.

Newark Liberty’s location and rail links make it the most convenient hub airport for travelers originating in north and central New Jersey, parts of New York City including Wall Street, and southern New York State.

The airline also offers New York-area travelers more flat beds in premium cabins and more extra-legroom economy seats than any other airline. In addition, the airline boasts:

the most saver-style award seats for frequent flyers among the largest U.S. global carriers, according to the 4^thannual Switchfly Reward Seat Availability Survey published this month by IdeaWorksCompany.
more aircraft offering satellite Wi-Fi and live television than any other U.S. airline.

Terminal C History

Copyright Photo: Dave Campbell/AirlinersGallery.com. The Boeing 737 and the pictured 727-200 were the mainstay aircraft in the PEOPLExpress fleet. Former Braniff Boeing 727-227 N553PE (msn 20774) poses for the camera at Chicago (O’Hare).

In 1985, People Express Airlines (PEOPLExpress) and the Port Authority agreed to remodel the existing Terminal C facility. After its 1987 mergers with Peoplexpress and New York Air (New York), which itself had a large Newark presence, Continental Airlines completed the terminal redevelopment project in conjunction with the Port Authority.

Copyright Photo: Fernandez Imaging/AirlinersGallery.com. The New York Air operation is pictured at nearby LaGuardia Airport.

In 2001, Continental Airlines (Houston) opened the Global Gateway, a $3.8 billion public-private partnership. The centerpiece of that project was the third concourse in Terminal C, “C-3,” designed to be bright and airy with gates constructed to enable international travelers to arrive at Terminal C – rather than solely at Terminal B – adding convenience and quicker connections.

Copyright Photo: Bruce Drum/AirlinersGallery.com. Continental’s McDonnell Douglas DC-10-10 N68046 (msn 47800) in the 1984 livery.

The Global Gateway also introduced the only rail station at a New York-area airport located in close proximity to the terminals, enabling Newark Liberty travelers direct AirTrain rail access to New York City’s Pennsylvania Station, New York State, New Jersey, Connecticut and Philadelphia.

Continental and the Port Authority also outfitted Terminal C with new roadways, parking garages, expanded electronic ticketing facilities, new terminal designs to facilitate more efficient security screening and an automated baggage handling system.

Top Copyright Photo: United Airlines. Crew members showcase the new uniforms.

United Airlines:

Continental Airlines:

Peoplexpress:

New York Air:

Route Map: How the Newark Hub has grown (click on the map for the full-size view):

Allegiant announces Bellingham-Reno service

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bellingham International Airport (BLI) and Reno-Tahoe International Airport (RNO) beginning on June 6, 2013.

In other news, the company has announced it has now served over four million total travelers at St. Pete-Clearwater International Airport (PIE) since the first flight took off on November 16, 2006 en route to Allentown, PA. Since that time, the company has grown its presence at the airport, now serving 25 cities with nonstop flights into St. Pete-Clearwater International, as well as basing six aircraft at the airport and employing pilots, flight attendants and mechanics.

Allegiant Air:

Allegiant announces Little Rock-Sanford flights starting on June 6

Allegiant Air (Las Vegas) has announced new, twice-weekly nonstop jet service between Bill and Hillary Clinton National Airport in Little Rock, Arkansas (LIT) and Orlando Sanford International Airport (SFB) beginning on June 6, 2013.

Copyright Photo: Ton Jochems. McDonnell Douglas DC-9-83 (MD-83) N422NV (msn 49381) completes its final approach into Los Angeles International Airport.

Allegiant Air:

Allegiant to add Greensboro-Fort Lauderdale/Hollywood flights

Allegiant Air (Las Vegas) has announced new nonstop jet service between Piedmont Triad International Airport (GSO) and Fort Lauderdale-Hollywood International Airport (FLL) beginning on June 6, 2013.

The new flights will operate twice weekly between Piedmont Triad International Airport (GSO) and Fort Lauderdale-Hollywood International Airport (FLL).

Copyright Photo: Brian McDonough. McDonnell Douglas DC-9-83 (MD-83) N876GA (msn 53469) arrives at Fort Lauderdale-Hollywood International Airport.

Allegiant:

Allegiant announces two new routes

Allegiant Air (Las Vegas) has announced new nonstop jet service between Provo International Airport (PVU) and Oakland International Airport (OAK) beginning on June 7, 2013. The new flights will operate twice weekly between Provo International Airport (PVU) and Oakland International Airport (OAK).

In addition, the company also announced new nonstop jet service between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE) beginning on June 6, 2013. The new flights will operate two times a week between Asheville Regional Airport (AVL) and St. Pete-Clearwater International Airport (PIE).

Editor’s “To The Point” Observation: Allegiant’s unique “small cities to holiday markets” business plan initially means adding two roundtrips per week on a new thin route to test the market. Often this new route becomes the biggest flight at this small airport. If the new route does well, Allegiant adds more frequencies until it eventually ramps up to daily service. If not, the route is dropped. This strategy to serve underserved small cities to vacation markets have worked well for the growing carrier.

Allegiant:

DAE to increase service to Miami and new service to Orlando

DAE-Dutch Antilles Express (Curacao) is expanding with new service to the United States. The airline starting on April 15 will add three new routes per Airline Route. This includes Aruba – Miami, Curacao – Orlando and Port-au-Prince – Miami.

Update: The airline suspended operations on August 24, 2013 and declared bankruptcy.

Copyright Photo: Tony Storck. Falcon Air Express operates this McDonnell Douglas DC-9-83 (MD-83) N120MN (msn 53120) for DAE in its colors. N120MN completes its final approach into Miami International Airport.

DAE:

Allegiant celebrates it 40th consecutive profitable quarter

Allegiant Travel Company (Allegiant Air) (Las Vegas) is celebrating its 40th consecutive profitable quarter. The company produced a net profit of $14.8 million in the fourth quarter (up from a net profit of $10.8 million in the same quarter a year ago) and a net profit of $78.6 million for 2012 (up from a net profit of $49.4 million in 2011). The travel company specializes in serving small markets with limited service to popular vacation destinations. The company issued the following financial results and details for the fourth quarter 2012 and full year results for 2012:

Allegiant Travel Company reported the following financial results for both the fourth quarter and full year 2012, as well as comparisons to prior year equivalents:

Unaudited	4Q12	4Q11	Change	2012	2011	Change
Total operating revenue (millions)	$222.8	$193.9	14.9%	$908.7	$779.1	16.6%
Operating income (millions)	$25.4	$20.2	25.8%	$132.3	$85.4	54.8%
Operating margin	11.4%	10.4%	1.0pp	14.6%	11.0%	3.6pp
EBITDA (millions)	$42.2	$31.3	34.7%	$190.1	$127.4	49.2%
EBITDA margin	18.9%	16.2%	2.7pp	20.9%	16.4%	4.5pp
Net income (millions)	$14.8	$10.8	36.6%	$78.6	$49.4	59.1%
Diluted earnings per share	$0.76	$0.56	35.7%	$4.06	$2.57	58.0%

“We are very proud to report our 40^th consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “40 consecutive profitable quarters is an outstanding achievement in this industry and we could not do it without the great efforts and contributions of our Team Members. In 2012, we recorded the highest system fuel cost per gallon we have ever paid for a full year. In spite of that, we were able to grow full year earnings per share over 58 percent to the highest ever.”

Notable company quarterly highlights

Signed purchase agreements to acquire nine Airbus A320 aircraft previously operated by Iberia
Successfully converted 100 percent of our customer web traffic to our new booking engine in November

Returned over $38 million to shareholders through a special dividend of $2 per share in December
Repurchased approximately 55,000 shares for $4 million during the fourth quarter

As of January 30, 2013, we have converted 47 of an expected 51 MD-80s to 166 seat aircraft
Began operating 21 new routes during the quarter
Announced eight new routes starting in the first quarter
Ranked 14^th on the Forbes’ 100 Best Small Companies. We have been listed four years in a row

Revenue performance

Fourth quarter 2012 total average fare was up 4.4 percent versus 2011 and was the highest in the company’s history
12^th consecutive quarter of year over year increases in total average fare
Ancillary air-related revenue per passenger has grown sequentially every month since April 2012

	4Q12	4Q11	Change	2012	2011	Change
Scheduled Service:
Average fare – scheduled service	$88.59	$91.66	(3.3)%	$88.90	$89.15	(0.3)%
Average fare – ancillary air-related charges	$39.89	$31.51	26.6%	$35.72	$31.17	14.6%
Average fare – ancillary third party products	$5.19	$4.88	6.4%	$5.48	$5.18	5.8%
Average fare – total	$133.67	$128.05	4.4%	$130.10	$125.51	3.7%
Scheduled service passenger revenue per ASM (PRASM) (cents)	7.99	8.91	(10.3)%	8.43	8.88	(5.1)%
Total scheduled service revenue* per ASM (TRASM) (cents)	12.06	12.45	(3.1)%	12.33	12.50	(1.4)%
Load factor	86.5%	89.6%	(3.1)pp	89.4%	91.7%	(2.3)pp
Passengers (millions)	1.6	1.4	13.3%	6.6	5.8	14.1%
Average passengers per departure	141	134	5.2%	140	136	2.9%
Average scheduled service stage length (miles)	930	904	2.9%	918	901	1.9%

* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.

Cost performance

Full year 2012 cost per ASM excluding fuel decreased 6.7 percent to 5.3 cents in spite of a five percent decrease in aircraft utilization for the same time period
Full year 2012 ASMs per gallon increased 6.6 percent to 63.0 versus last year, and improved sequentially 3.6 percent in the fourth quarter 2012 versus the third quarter 2012
Full year 2012 salaries and benefits expense per passenger decreased 1.7 percent despite a 14.2 percent increase in full time equivalent employees
Full year 2012 maintenance and repairs expense per passenger decreased 19.6 percent due primarily to a 60 percent decline in engine overhaul expenses. Maintenance expense per aircraft per month was $102,277 in 2012 versus $129,558 in 2011
Full year 2012 sales and marketing expense per passenger decreased 14.6 percent versus last year, primarily due to the implementation of a discount for customers paying with less expensive forms of payment beginning in the third quarter 2012

	4Q12	4Q11	Change	2012	2011	Change
Total System*:
Operating expense per passenger	$118.49	$116.08	2.1%	$111.12	$112.32	(1.1)%
Operating expense per passenger, excluding fuel	$63.50	$62.04	2.4%	$56.99	$58.78	(3.0)%
Operating expense per ASM (CASM) (cents)	10.50	11.03	(4.8)%	10.37	10.90	(4.9)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents)	5.63	5.89	(4.4)%	5.32	5.70	(6.7)%
Average block hours per aircraft per day	5.3	5.6	(5.4)%	5.7	6.0	(5.0)%

* Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Third party products performance

For the fourth quarter 2012, ancillary revenue – third party products per passenger increased 6.4 percent versus last year. This has been our eleventh consecutive quarter of year over year increases.
For the full year 2012, net revenue from hotels increased about five percent while net revenue from rental cars increased about 33 percent versus 2011

Supplemental Ancillary Revenue Information Unaudited (millions)	4Q12	4Q11	Change	2012	2011	Change
Gross ancillary revenue – third party products	$24.9	$23.0	8.6%	$119.0	$106.4	11.9%
Cost of goods sold	($16.2)	($15.2)	6.1%	($79.0)	($72.0)	9.7%
Transaction costs*	($.6)	($.9)	(35.9)%	($3.9)	($4.5)	(12.1)%
Ancillary revenue – third party products	$8.2	$6.8	20.5%	$36.1	$29.9	20.8%
As percent of gross	32.8%	29.6%	3.2pp	30.3%	28.1%	2.2pp
As percent of income before taxes	34.9%	36.9%	(2.0)pp	29.0%	37.6%	(8.6)pp
Ancillary revenue – third party products/scheduled passenger	$5.19	$4.88	6.4%	$5.48	$5.18	5.8%
Hotel room nights (thousands)	137.5	142.6	(3.5)%	690.1	647.7	6.5%
Rental car days (thousands)	169.1	113.8	48.6%	763.4	577.7	32.1%

* Includes payment expenses and travel agency commissions.

Balance sheet highlights

We currently have $41 million in share repurchase authority

Unaudited (millions)	12/31/12	12/31/11	Change
Unrestricted cash*	$352.7	$319.5	10.4%
Total debt	$150.9	$146.1	3.3%
Total Allegiant Travel Company stockholders’ equity	$400.5	$351.5	14.0%

Year ended December 31,
Unaudited (millions)	2012	2011	Change
Capital expenditures	$105.1	$86.6	21.4%

* Unrestricted cash includes investments in marketable securities.

At this time, Allegiant Travel Company provides the following guidance to investors, subject to revision.

Guidance, subject to revision
Revenue guidance	January 2013	1Q13
Estimated PRASM year-over-year change	(13) to (11)%	(8) to (6)%

Fixed fee and other revenue guidance		1Q13
Fixed fee and other revenue (millions)		$4 to $6

Capacity guidance
System	1Q13	2Q13
Departure year-over-year growth	(8) to (4)%	(7) to (3)%
ASM year-over-year growth	+12 to 16%	+14 to 18%
Scheduled
Departure year-over-year growth	(2) to 2%	0 to 4%
ASM year-over-year growth	+15 to 19%	+19 to 23%

Cost guidance		1Q13
CASM ex fuel – year-over-year change		+1 to 3%

CAPEX guidance		FY13
Capital expenditures (millions)		$150 to $160