Aloha717200 From United States of America, joined Aug 2003, 4543 posts, RR: 13
Reply 3, posted (7 years 5 months 2 weeks 4 days 22 hours ago) and read 4402 times:
What that shows me is that management has been pretty smart about saving costs internally over the last year. They've managed to offset increased costs. I wish we could say the same for the rest of the industry.
Lexy From United States of America, joined Jun 2006, 2515 posts, RR: 8
Reply 4, posted (7 years 5 months 2 weeks 4 days 22 hours ago) and read 4365 times:
Quoting Aloha717200 (Reply 3): What that shows me is that management has been pretty smart about saving costs internally over the last year. They've managed to offset increased costs. I wish we could say the same for the rest of the industry.
Well I agree. Many airlines could learn some lessons, it would seem, from Allegiant. Well done to the Allegiant Team!
FATFlyer From United States of America, joined May 2001, 5920 posts, RR: 27
Reply 5, posted (7 years 5 months 2 weeks 4 days 21 hours ago) and read 4292 times:
Reading the comments from Sr. Management they say "Should record fuel prices persist, our performance in the second
quarter of this year will not match our performance in the second
quarter of last year. Despite the challenges of managing our business
in the face of record fuel prices, we believe we can remain profitable."
So they are not immune from the current pressures but seem willing to do what it takes to remain profitable.
Also in terms of their financial position they had at the end of Q1 "$188.2 million in cash and short-term investments,
up from $171.4 million at year end. Total debt at quarter end stood at
$71.0 million, all secured by aircraft."
"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
MKE22 From United States of America, joined Nov 2007, 1166 posts, RR: 2
Reply 8, posted (7 years 5 months 2 weeks 4 days 20 hours ago) and read 4141 times:
Good job G4! Even w/ the MD-80s you can remain profitable. I have a question for those of you in the loop on G4, is it true G4 may be looking at a focus city at RSW? Just something I have been hearing, and maybe still being profitable, they could be one of the few airlines that can afford to expand right now.
FreequentFlier From United States of America, joined Feb 2007, 927 posts, RR: 13
Reply 9, posted (7 years 5 months 2 weeks 4 days 20 hours ago) and read 4113 times:
G4 actually purchased 6 more MD-80s if I'm not mistaken. The fact that they have a healthy enough balance sheet to acquire 6 new planes is extremely impressive for such a small company. Congrats to G4 and its employees!
Rbgso From United States of America, joined Jun 2006, 613 posts, RR: 0
Reply 11, posted (7 years 5 months 2 weeks 4 days 8 hours ago) and read 3842 times:
No question this is impressive performance.
Allegiant does what other carriers dream about - bounce in and out of mostly secondary markets based solely on short term profitability. And it works just fine for them, but it is not a model the larger carriers can adapt. One flight a day, less than daily service, leisure travel customer base, and no connecting network to speak of will not work for the majors.
But for G4, it's what they do, and they do it well.
YamahaR1 From United States of America, joined Mar 2008, 10 posts, RR: 0
Reply 12, posted (7 years 5 months 2 weeks 4 days 7 hours ago) and read 3728 times:
and delay,after delay,sure youll make a profit taking paying pax money and delay for a day or longer.Yah youll make money that way keeping planes on the ground and taking money,and with lousey service on top of that and youve got yourself a winner there.
Flighty From United States of America, joined Apr 2007, 9518 posts, RR: 3
Reply 13, posted (7 years 5 months 2 weeks 4 days 6 hours ago) and read 3695 times:
Allegiant is one of the most clever airlines in the USA.
I have always been a fan of their strategy. I feel they use the perfect aircraft in the perfect way.
A lot of people in the USA live in cities of 100,000-300,000 that get little or no airline service. These cities have a big middle class that wants to go to Vegas, Florida and California.
WN's model is the opposite. Big volume stations ONLY. Allegiant is sticking to smaller volume, very low _frequency_ but large _number of stations_. This CAN work. America has SO many airports. And quite large pockets of population without good airline service.
Allegiant noticed this. The direct result is the Allegiant route map and schedule you see today. And it (?!?!) makes money. They even have pricing power. You have to hand it to Allegiant for innovating and serving the US market in essentially a brand new way.
Frontierflyer From United States of America, joined Aug 2007, 221 posts, RR: 1
Reply 15, posted (7 years 5 months 2 weeks 4 days 6 hours ago) and read 3652 times:
Pound for pound this blows away WN. Congrats indeed! Who would imagine you could make money flying gas guzzling mad dogs at 100+ oil. Its like gorilla war, quick strikes here and there and get out. Majors are charging into no mans land and getting slaughtered!
JetBlueGuy2006 From United States of America, joined Jan 2006, 1697 posts, RR: 1
Reply 18, posted (7 years 5 months 2 weeks 4 days 5 hours ago) and read 3540 times:
Quoting FRA2DTW (Reply 14): They are also quick to pull out of markets which do not perform for them, as they did at Lansing
What are you talking about? G4 is still in Lansing, and the only service they have dropped was LAS, and that was based on Fuel costs and probably low auxiliary revenue. And they dropped it after like 4 years? I wouldn't call it a quick pull out and SFB and PIE are going strong still.
Home Airport: Capital Region International Airport (KLAN)
LoneStarMike From United States of America, joined Jul 2000, 4028 posts, RR: 31
Reply 19, posted (7 years 5 months 2 weeks 4 days 4 hours ago) and read 3450 times:
Allegiant was briefly mentioned in a recent article in the Austin American-Statesman about VivaAerobus
But the future of ultra-no-frills airlines may be more tenuous in the United States.
Earlier this month, Skybus, a Columbus, Ohio-based airline that also made headlines for its $10 tickets, folded after just 10 months in operation. The airline blamed rising fuel costs and a slowing economy for its demise.
A more hopeful sign for Viva Aerobus is Las Vegas-based Allegiant Airlines, whose investors include the family behind Ryanair. That discounter reported a first-quarter passenger surge of 57 percent.
COERJ From United States of America, joined Dec 2005, 238 posts, RR: 0
Reply 22, posted (7 years 5 months 2 weeks 4 days 3 hours ago) and read 3377 times:
Quoting MKE22 (Reply 8): I have a question for those of you in the loop on G4, is it true G4 may be looking at a focus city at RSW?
I find it highly unlikely that G4 would open a focus city in RSW, although I may be wrong. One of the reasons why G4 is so profitable is because their hubs are secondary airports with very low landing fees and costs. For example PIE is a secondary airport to TPA, as well as SFB to MCO, and FLL to MIA. These airports have much lower costs than their larger siblings, making it more profitable for the airline. RSW, on the other hand, has high landing/ terminal fees, especially due to recent construction. It is not a secondary airport either, which doesn't follow G4's business plan. Therefore, flying out of RSW would not be as profitable as the other three.