Allegiant Air growing while others are cutting back
April 10th, 2008 at 06:48pm Thomas V. Bona
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.
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3 Comments Add your own
1. george | April 12th, 2008 at 10:22 am
ROCKFORD AIRPORT DOES NOT TELL YOU ABOUT CARRIES LEAVING ROCKFORD AND CUTTING SERVICE POINTS.
2. Thomas V. Bona | April 12th, 2008 at 3:20 pm
I’m not sure what you mean - the airport has been up front about United ending the Denver route and Allegiant cutting Fort Lauderdale, while at the same time trumpeting its service gains.
3. ANCJason | April 12th, 2008 at 7:27 pm
There is another airline that operates out of the North Las Vegas Airport called Vision that has a similar business model to Allegiant, only to a smaller scale. They have been trying to get a hold of some Dornier 328 Jets (which Skyway has a surplus of, unless they sold them off already). Since 2006 they have been trying to set up service to smaller niche markets, mainly in California (like Sonoma County; Concord/Contra Costa; Logan, Utah, etc.), to North Las Vegas Airport, which doesn’t have the delays that McCarran has.
Allegiant stated in a Phoenix-area newspaper that they would not compete with Vision by connecting Las Vegas and Mesa-Phoenix. However, I have often wondered if Allegiant would make an investment in this venture, particularly as Vision seems to have difficulty getting aircraft and Part 121 certification. The only thing that Vision’s business model lacks is infinite potential for growth.
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