Tag Archives: DC9

St. Cloud, Minnesota to have airline service again via Allegiant Air

Allegiant Air (Las Vegas) has announced it will launch twice-weekly service from Mesa, Arizona (near Phoenix) to St. Cloud, MN on December 15. ย Delta dropped service to St. Cloud (to MSP) in December 2009.

Read the full report from MPR News: CLICK HERE

Copyright Photo: Bruce Drum. Allegiant also operates the McDonnell Douglas DC-9-87 (MD-87), mainly for charter flights. The short-fuselage type will be retired in 2013.

Allegiant Slide Show:ย 

Allegiant’s pilots pick the Teamsters to represent them

Allegiant Air‘s (Las Vegas) pilots have selected the Teamsters to represent them. The company issued the following statement:

Allegiantย has received notification from the National Mediation Board (NMB) that employees voting in the pilot election have chosen to be represented by the International Brotherhood of Teamsters (IBT).

“Allegiant respects the right of the pilot group to elect third-party representation, and we will work with the IBT to the best interests of both our employees and the Company,” Maurice J. Gallagher, Jr., Allegiant CEO and Chairman, said. “Contract negotiations can be a lengthy process and we do not anticipate any disruptions to our business or operations.”

Copyright Photo: Stephen Tornblom. McDonnell Douglas DC-9-83 (MD-83) N868GA (msn 49554) prepares to taxi from the gate at Long Beach.

Allegiant:ย 

Allegiant to start Harrisburg-Sanford flights on October 31

Allegiant Air (Las Vegas) has announced new twice-weekly service between Harrisburg, Pennsylvania and Sanford, Florida (near Orlando) starting on October 31.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N420NV (msn 49424) completes its final approach at Los Angeles.

Allegiant:ย 

Allegiant to start Sanford-Lansing service on November 1

Allegiant Air (Las vegas) will open up the Sanford (near Orlando)-Lansing, Michigan route on November 1 per Airline Route. The new route will be operated two days a week.

Additionally the carrier will start twice-weekly Sanford-Columbus, Ohio (Rickenbacker) service on October 25.

The fast-growing company will also add a new route linking Mesa (near Phoenix) and Rochester, MN on November 1. As is their business plan, the route will initially be operated two days a week.

Copyright Photo: Michael B. Ing. McDonnell Douglas DC-9-83 (MD-83) N866GA (msn 49910) is pictured in action at Long beach.

Allegiant:ย 

Allegiant to drop three routes from Los Angeles due to a lack of gates

Allegiant Air (Las Vegas) is trimming three routes from Los Angeles International Airport due to a shortage of gates. The carrier will drop all service from LAX to Billings (September 1), Pasco (September 1) and Sioux Falls (August 13).

Read the full story from the ArgusLeader.com: CLICK HERE

Copyright Photo: McDonnell Douglas DC-9-83 (MD-83) N405NV in the Blue Man Group promotional livery taxies from the gate to the runway at LAX.

Allegiant:ย 

Route Map:

Allegiant’s second quarter net income rises by 110% to $25.2 million

Allegiant Travel Company (Allegiant Air) (Las Vegas) is steady profit machine finding profits in its underserved small markets. It really has no competition in these markets.

The travel group reported its second quarter net profit increased over 110 percent to $25.2 million.

Here is the full company statement:

“Allegiant Travel Companyย reported the following financial results for the second quarter 2012 as well as comparisons to prior year equivalents:

Unaudited 2Q12 2Q11 Change
Total operating revenue (millions) $231.2 $200.4 15.3%
Operating income (millions) $41.9 $20.7 102.1%
Operating margin 18.1% 10.3% 7.8pp
EBITDA (millions) $54.9 $30.9 77.9%
EBITDA margin 23.8% 15.4% 8.4pp
Net income (millions) $25.2 $11.9 110.8%
Diluted earnings per share $1.30 $0.62 109.7%

“We are very proud to report our 38thย consecutive profitable quarter,” stated Maurice J. Gallagher, Jr., Chairman and CEO of Allegiant Travel Company. “I’d like to thank our Team Members for their great efforts and contributions to another successful quarter.”

Notable company highlights

  • CASM ex-fuel declined 13.9 percent to 5.1 cents, cost per passenger ex-fuel decreased 11.4 percent to $52.98
  • Announced acquisition of 19 A319 aircraft
  • Announced retirement of two MD-87s by the second quarter of 2013
  • Currently testing new website. Only a limited portion of web traffic is pointed to the new site. We expect to have 100 percent of traffic on it by the fourth quarter
  • Instituted new boarding process to support carry-on bag policy
  • Initiated service to Honolulu from Las Vegas and Fresno, Calif
  • Announced service to Honolulu from Bellingham, Wash, Eugene, Ore, Santa Maria, Monterey, and Stockton, Calif to begin in mid November
  • Announced service to Maui from Bellingham, Wash to begin in mid-November
  • As of Aug 1, we have 30 MD-80s with 166 seats. Expect all west coast scheduled MD-80s to have 166 seats by end of the third quarter of 2012.
  • Received ETOPS certification and Flag Carrier Status – permits international scheduled flying
  • Since July 2, operating four 757s
  • Started Oakland and Punta Gorda bases, currently serving eight markets and seven markets, respectively

Revenue performance

  • Average fare — ancillary air-related revenue per passenger grew 7.8 percent
  • Ancillary revenues per passenger were $39.67 in the second quarter, highest in the company’s history

2Q12 2Q11 Change
Scheduled Service:
Average fare – scheduled service $89.43 $91.17 (1.9)%
Average fare – ancillary air-related charges $33.90 $31.45 7.8%
Average fare – ancillary third party products $5.77 $5.68 1.6%
Average fare – total $129.10 $128.30 0.6%
Scheduled service passenger revenue per ASM (PRASM) (cents) 8.75 9.27 (5.6)%
Total scheduled service revenue* per ASM (TRASM) (cents) 12.63 13.04 (3.1)%
Load factor 90.1% 92.0% (1.9)pp
Passengers (millions) 1.7 1.5 16.0%
Average passengers per departure 140 136 2.9%
* Total scheduled service revenue includes scheduled service, ancillary air-related, and ancillary third party revenue.

Cost performance

  • Cost per ASM excluding fuel decreased 13.9 percent to 5.1 cents, total cost per ASM decreased 10.9 percent to 10.16 cents
  • Aircraft fuel expense per gallon declined 2.5 percent or $.08 per gallon
  • Fuel cost per passenger was $52.50, a $2.93 decrease or a 5.3 percent drop from the second quarter 2011
  • Salary and benefit expense per passenger declined 3.4 percent primarily due to outsourcing of station personnel in Las Vegas in the second quarter of 2011 and continued productivity gains
  • Sales and marketing expense per passenger decreased 11.7 percent primarily due to an 8 percent decline in payment processing cost per passenger resulting from increased debit card usage
  • Maintenance and repairs expense per passenger decreased 34.9 percent due primarily to a 64 percent decline in engine overhaul expenses
  • Station operations expense per passenger increased 2.8 percent primarily due to outsourcing Las Vegas station personnel

2Q12 2Q11 Change
Total System*:
Operating expense per passenger $105.48 $115.24 (8.5)%
Operating expense per passenger, excluding fuel $52.98 $59.81 (11.4)%
Operating expense per ASM (CASM) (cents) 10.16 11.40 (10.9)%
Operating expense, excluding fuel per ASM (CASM ex fuel) (cents) 5.10 5.92 (13.9)%
* Total system includes scheduled service, fixed-fee contract and non-revenue flying.

Third party products performance

  • Ancillary revenue — third party products per passenger increased 1.6 percent, our ninth consecutive quarter of year over year increases
  • Third party ancillary gross margin improved to 29.7 percent versus 28.1 percent last year
  • 41 percent of hotel room night growth occurred outside of Las Vegas
  • Rental car days grew 28.4 percent year over year

Supplemental Ancillary Revenue Informationย 
Unaudited (millions)
2Q12 2Q11 Change
Gross ancillary revenue – third party products $32,909 $29,547 11.4%
Cost of goods sold ($21,909) ($20,046) 9.3%
Transaction costs* ($1,218) ($1,210) 0.7%
Ancillary revenue – third party products $9,782 $8,291 18.0%
As percent of gross 29.7% 28.1% 1.6pp
As percent of income before taxes 24.5% 43.9% (19.4)pp
Ancillary revenue – third party products/scheduled passenger $5.77 $5.68 1.6%
Hotel room nights (thousands) 204.3 186.2 9.8%
Rental car days (thousands) 201.6 157.0 28.4%
* Includes payment expenses and travel agency commissions.

Balance sheet highlights

  • Financed two 757s in the quarter for $14 million
  • $33 million of total debt secured by six 757 aircraft
  • Currently have $45 million in share repurchase authority

Unaudited (millions) 6/30/12 12/31/11 Change
Unrestricted cash* $390.1 $319.5 22.1%
Unrestricted cash net of air traffic liability $232.4 $200.8 15.8%
Total debt $156.2 $146.1 6.9%
Total stockholders’ equity $403.0 $351.5 14.6%
Six months ended June 30,
Unaudited (millions) 2012 2011 Change
Capital expenditures $61.1 $51.2 19.2%
* 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 July 2012 3Q12
Estimated PRASM year-over-year change (3) to (1)% (9) to (7)%
Fixed fee and other revenue guidance 3Q12
Fixed fee and other revenue (millions) $10 to $12
Aircraft guidance 3Q12
Number of MD-80s to be converted to 166 seats* 37 to 39
Capacity guidance
System 3Q12 4Q12
Departure year-over-year growth +2 to 6% +5 to 9%
ASM year-over-year growth +14 to 18% +19 to 23%
Scheduled
Departure year-over-year growth +3 to 7% +6 to 10%
ASM year-over-year growth +15 to 19% +22 to 26%
Cost guidance 3Q12 FY12
CASM ex fuel — year-over-year change (2) to 0% (10) to (5)%
CAPEX guidance FY12
Capital expenditures (millions) $105 to $115
Full year capacity guidance FY12 FY13
Scheduled ASM year-over-year growth +20 to 25% +20 to 25%
CASM ex fuel — cost per available seat mile excluding fuel expense
* Number of aircraft expected to be completed by end of the quarter

Copyright Photo: Stephen Tornblom.McDonnell Douglas DC-9-83 (MD-83) N865GA at Long Beacg shows off the updated 2010 livery.

Allegiant:ย 

Is American Airlines’ CEO panicking?

American Airlines‘ (Dallas/Fort Worth) current CEO Tom Horton is going on a media offensive in the on-going “war of words” with US Airways’ CEO Doug Parker about a possible merger between the airlines. As we previously reported, Horton has stated he started the merger conversation with Parker.

Now columnist Mitchell Schnurman of the Fort Worth Star-Telegram is raising the question of whether Horton is panicking? Is this the fight for the future CEO position of a merged American Airlines?

Read the article: CLICK HERE

Copyright Photo: Brian McDonough. There is not a lot of “Working Together” between the management of American Airlines and US Airways. Even the AA labor groups are siding with Doug Parker. McDonnell Douglas DC-9-82 M73444 lands at Baltimore/Washington with the “Working Together” message.

American Airlines:ย 

Allegiant to start Ogden-Mesa flights on September 20

Allegiant Air (Las Vegas) will add the Ogden, Utah-Mesa, Arizona (near Phoenix) route on September 20.

The new flights will operate twice weekly between Ogden Airport (OGD)ย and Phoenix-Mesa Gateway Airport (IWA).

Copyright Photo: Tony Storck.

Allegiant:ย 

The Timetable Chronicles: Ozark Air Lines (Part 2)

Guest Editor David Kellerย 

Guest Editor David Keller

The Timetable Chronicles: The World of Airline Timetable Collecting

Ozark Air Lines (Part 2)

The latter half of the 1960โ€™s were eventful for the local airlines in general, and Ozark Airlines (St. Louis) was no exception.ย  Starting with Mohawkโ€™s introduction of the BAC 1-11 in 1965, the local carriers began the process of adding pure-jets to their fleets.ย  Ozark went a step further, ordering DC-9โ€™s and FH-227Bโ€™s to replace its entire fleet of F-27โ€™s, Martin 404โ€™s and the workhorse DC-3โ€™s.ย  The July 15, 1966 timetable (below) is the first to show DC-9โ€™s in service, with a single aircraft being put to work on a 14 flight schedule that served 7 stations, as indicated by the promotional ad in the timetable.

Copyright Photo: Bruce Drum. Please click on the photo for the full view and details.

Ozark Airlines:ย 

The December 1, 1966 timetable (below) shows the addition of the Fairchild FH-227B to Ozarkโ€™s fleet.

Service was inaugurated to 11 destinations with this timetable, and 4 additional stations were added 2 weeks later.ย  The type would eventually number 21 aircraft, one of which was lost in a crash at St. Louis in 1973.ย  The final revenue service (which I was fortunately able to ride) came on October 25, 1980 as Flight 848 from St. Louis to Chicago with a stop at Peoria.

Copyright Photo: Bruce Drum. Please click on the photo for the details and the full view.

Another big happening in the local airline world in the late 60โ€™s was the growing shift towards cross-subsidies.ย  The government had been subsidizing the local carriers to serve points that were generally unprofitable, while profitable routes went to the trunk carriers.ย  Now that the local carriers were acquiring jets, they had a chance to be competitive against the trunk lines. ย Cross-subsidies involved awarding some of those potentially profitable services to the locals, with the idea that those profits could reduce the amount of the subsidies paid for the other operations.ย  In some cases, authority was given to operate non-stop flights in major markets where stops had previously been required.ย  Such was the case when Ozark was awarded non-stop authority between St. Louis and Chicago as promoted on the timetable dated October 27, 1968 (below).ย  By November 15th, the carrier was offering 7 nonstops in each direction.

In other instances, โ€œbypassโ€ routes were awarded from some of the larger local stations to major cities outside of the carrierโ€™s normal area of operation.ย  Ozark would receive authority to Denver, Dallas, New York and Washington from places like Sioux City, Peoria and Champaign/Urbana.ย  The route map from the timetable dated October 1, 1970 (below) shows the new services as well as the acquisition of Chicago โ€“ Des Moines nonstop authority.

A number of local service airlines tried operating smaller aircraft that were generally considered to be commuter types.ย  Ozark attempted such a โ€œcommuterโ€ operation beginning on March 12, 1972 (below) with Twin Otter service between Springfield, IL and Meigs Field in Chicago.ย  Flights were operated every 90 minutes on weekdays only.ย  This became a competition with the much smaller Air Illinois which operated a very similar schedule of flights on the route.ย  After less than a year, Ozark would drop the service, and Air Illinois would continue to operate the route for a number of years, utilizing an HS 748 for much of that time.

In late 1973 the airline world suffered the shock created by the Arab Oil Embargo.ย  Fuel quotas were established, and the airlines had to learn how to get by with less.ย  The impact on the local carriers was not as drastic as the trunk carriers, which removed many of their new but fuel hungry 747โ€™s from service, as well as entire fleets of non-fan Convair 880โ€™s, 707/720โ€™s and DC-8โ€™s.ย  The local airlines had no widebodies or first-generation aircraft, so their fleets were relatively efficient.

October of 1978 ushered in the event that has done more to shape the airline industry than any other, the Airline Deregulation Act.ย  This piece of legislation removed many of the barriers faced by airlines applying for authority to serve new routes (which had often been a slow and arduous process), as well as for entities wanting to create new airlines.ย  The initial result was the award of unused route authority to other airlines willing to provide service.ย  Florida was a popular choice for new service, and Ozark quickly began service to 4 destinations with their December 15, 1978 timetable (below).

Please click on the map to expand.

Copyright Photo: Bruce Drum. The last OZ color scheme, introduced in 1979.

A number of local carriers were looking at larger equipment to use on the new routes, and a several opted for 727โ€™s (used -100 series aircraft or factory-new 200-series).ย  For its part, Ozark placed an order for 2 new 727-200โ€™s slated for delivery in late 1979.ย  Unfortunately, the carrier suffered several work stoppages prior to the arrival of the new aircraft, and determined that they were no longer required given the resulting reductions in traffic.ย  Although at least one was painted in full Ozark colors, the type never entered service and both were sent off to Panย Am.

Copyright Photo: Robert Woodling – Bruce Drum Collection.

New services in the early days of Deregulation were frequently from stations other than the carrierโ€™s main operations base, which was tied in to the new destinations by the continuation of the flight routings when practical.ย  As the ability to enter and leave routes was liberalized over the ensuing years, most of the services to new destinations realigned to provide non-stop flights from one of the airlineโ€™s chosen hubs, again leaving the outlying stations with only direct or connecting service.ย  The route map of the October 1, 1985 timetable (below) shows the almost-complete consolidation of routes through the airlineโ€™s hub in St. Louis.

This timetable also shows Ozark embracing the โ€œexpressโ€ concept of code-sharing with commuter airlines to provide service to smaller destinations (which had frequently been dropped by the larger carrier).ย  In Ozarkโ€™s case, a partnership was created with Air Midwest to form Ozark Midwest, which started with service from St. Louis to 15 destinations.

The other impact of Deregulation was the ensuing rash of airline mergers, which in some cases involved a trunk carrier buying up their principal competition.ย  Such was the case in 1986 when TWA purchased Ozark, ending a proud legacy spanning over 36 years.ย  The timetable dated August 25, 1986 was the final issue published prior to the merger.

The final โ€œOzarkโ€ timetables were actually issued by TWA following the merger.ย  At least 3 different Ozark timetables were printed, and I am told that it was due to TWA using the Ozark operating certificate for the DC-9โ€™s until it could be transferred.ย  (TWA already had MD-80โ€™s, so there was no problem with the larger type.)ย  Apparently, TWA felt that they needed an โ€œOzarkโ€ timetable if they were operating certain flights as such, and distributed a small number of copies to each station with instructions to hand them out only if asked.ย  (It makes no sense to me that a timetable was required to support an operating certificate, but thatโ€™s the story I was given!)

The April 5, 1987 timetable shows โ€œOzarkโ€ flights to Toledo, a station never actually served by the airline.ย  Eventually, the certificate was transferred, and Ozark Air Lines disappeared into TWA.

Ozark Airlines:ย 

Comments can made directly to this WAN blog or you can contact David directly at:

David Keller

email:ย dkeller@airlinetimetables.com

website:ย http://airlinetimetables.com

blog:ย http://airlinetimetableblog.blogspot.com

US Airways to file for antitrust immunity next month for a merger with American Airlines

US Airways (Phoenix) is planning to file the necessary paperwork with the antitrust regulators for a proposed merger with AMR Corporation (Dallas/Fort Worth), the bankrupt parent of American Airlines (Dallas/Fort Worth), according to this report by Reuters. US Airways believes such a filing would ease antitrust concerns about a possible merger. Meanwhile American’s management is proceeding with their own Chapter 11 reorganization as a stand-alone carrier despite undying pressure from the unsecured creditors and the unions to consider a merger with US Airways.

Read the full report: CLICK HERE

Top Copyright Photo: Jay Selman.

US Airways:ย 

American:ย 

Bottom Copyright Photo: Bruce Drum.