Allegiant Air growing while others are cutting back

3 comments April 10th, 2008

Allegiant Air, the largest carrier at Chicago Rockford International Airport, has had a good week at a time when many airlines have crash-landed. Today it announced it was buying six more planes to expand its fleet to 41 next year and 43 in 2009. Spokeswoman Tyri Squyres told me the airline was looking at ways to keep growing, even with high fuel prices and a soft economy. Not all the planes will be used for the airline’s regularly scheduled route network; some will be used for its charter program, including its popular flights to Harrah’s Entertainment casinos in Reno and Laughlin, Nev., and in Tunica, Miss. She said they’ll also look at other leisure destinations, but will focus more on filling in the gaps in its existing network.

That probably means the new airplanes won’t directly benefit Rockford with new destinations, at least not in the near future. But it’s good news that the primary airline here is in strong enough financial shape to pay straight cash for six airplanes.

The other good news is that Allegiant is staying in Greensboro, N.C., after Skybus’ announcement that is was going bankrupt. Allegiant officials said the competition from ultra-low-cost Skybus was a reason for its decision last month to pull service from Greensboro.

The change of mind lead to the quote of the day, from Robert Ashcroft, vice president of planning for Allegiant: “We preferred to stay clear of a company acting in ways we did not understand.”

Sound business advice.

Today’s fuel price musings - National records for both gas and diesel

Add comment April 10th, 2008

Records fall on both sides. A couple key takeaways from the AP article:

Gasoline prices normally rise during the spring as people travel more. However, the record pump prices have also been supported by high crude prices as shrinking profit margins cause refiners to pull back on production.

and

United Parcel Service, a major shipping company, reduced its first-quarter earnings predictions because of the high price of fuel.

More on UPS later today, but for now, here’s the damage (Data courtesy of AAA’s fuelgaugereport.com):

Gasoline: Rockford dropped two cents to $3.43 a gallon today, perhaps just delaying a record-setting price. The state average increased a cent to $3.47 today, five cents from its record. Rockford maintains the third-highest prices in the state, while Illinois has the sixth-highest gas prices in the country. The national average jumped another cent and then some, hitting a record $3.36 a gallon.

Diesel: Rockford jumped four cents to $4.12 a gallon today and has risen 10 cents this week. The state average increased a fraction of a cent today and remains at $4.14 a gallon, less than two cents shy of its record. We still have the second-highest diesel prices in the state now, behind only Chicago (which stays at $4.25). The nation jumped more than a cent to a record $4.05 a gallon. Illinois has the 14th-highest prices in the country.