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Q&A Interview With Allegiant President Andrew Levy  
User currently offlineFATFlyer From United States of America, joined May 2001, 5789 posts, RR: 15
Posted (3 years 4 months 5 days 23 hours ago) and read 2614 times:

A fairly long Q&A style interview article with Andrew Levy, who currently serves as Allegiant's President was published today by the LV Sun.
http://www.lasvegassun.com/news/2011/mar/07/q-andrew-levy/

The interview covered a large range of company related topics including fuel costs, 2011 growth plans, Hawaii and other future routes using 757s (like Mexico), competing with other airlines, unionization, etc.

Here are a few interesting quotes from him on some topics, but much more in the full article:

on the Hawaii Start
"We’re hoping that we’ll be flying there in 2012 and hopefully that will be in the first part or no later than the summer of ’12. That’s what we’re shooting for."
"We’ve been looking at Hawaii for about five years so our view is that Hawaii’s not going anywhere and the routes that we target are highly unlikely that anybody else is going to target. So we’re patient. We’ll get there when we’re ready."

on Potential Hawaii Routes
"The industry is so fluid and dynamic that routes that we would think would work well now we may not feel about the same way a year from now. I don’t know if we’ll do anything out of Las Vegas, at least early on."

"But we are going to target some of our small cities on the West Coast into Hawaii as well as some cities that today we don’t serve at all, but we think service to Hawaii would be very valuable."

on Adding More 757s
"...we think that the opportunity for Hawaii is bigger than six airplanes. We also think that this airplane has great application elsewhere so for both those reasons, we think we’ll have more than six 757s over time. Some things that airplane enables us to do which would be of interest certainly to Las Vegas would be longer-haul flights to the East Coast, which there are a few markets we think would be successful."

"....we think longer term that there are opportunities to go internationally out of Las Vegas and this airplane can go about seven hours so it can get you into the northern parts of South America. So we do think there are opportunities to expand our Vegas service by bringing in international customers inbound into Las Vegas."

on competing with JetBlue on LGB-LAS and against other airlines in the future
"JetBlue reacted extremely aggressively, which was a little bit surprising.........
In one respect, it’s not a surprise because it’s right out of the Airline 101 playbook. But at the same time, I thought with these circumstances with the fact of our limited ability to grow there, it’d probably simply ignore us. But it didn’t, so it dropped fares to match us and then, of course, Southwest dropped fares in other airports in L.A. to match them, so we’ve really made travel to the L.A. Basin a bargain for everybody. For us, the route is performing very well. It’s hard to get the word out in L.A. It’s such a huge market for us. But we’re pleased with the results, and we intend to continue to operate those flights."

"We think over time, there may be some more opportunities to fly into some of the shorter-haul routes out of Las Vegas where there’s essentially a monopoly in the form of Southwest Airlines. So we do think over time that those could present some opportunities for us."

More at:
http://www.lasvegassun.com/news/2011/mar/07/q-andrew-levy/


"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
8 replies: All unread, jump to last
 
User currently offlinehatbutton From United States of America, joined Mar 2005, 1500 posts, RR: 14
Reply 1, posted (3 years 4 months 5 days 22 hours ago) and read 2486 times:

This must have been done prior to the announcement of contracting out ground services in LAS. Too bad. Would love to hear his thoughts on that.

User currently offlineberyllium From , joined Dec 1969, posts, RR:
Reply 2, posted (3 years 4 months 5 days 21 hours ago) and read 2404 times:

Quoting hatbutton (Reply 1):
This must have been done prior to the announcement of contracting out ground services in LAS. Too bad. Would love to hear his thoughts on that.

He is talking at length about unionization issues in this Q&A session.
So, his thoughts regarding contracting out ground services at LAS, should be something like: "We've made the right decision - we are not just reducing the cost of operation, we are also minimizing the risk associated with potential unionizing of yet another employee group".


User currently offlinehatbutton From United States of America, joined Mar 2005, 1500 posts, RR: 14
Reply 3, posted (3 years 4 months 5 days 19 hours ago) and read 2282 times:

Quoting beryllium (Reply 2):
He is talking at length about unionization issues in this Q&A session.
So, his thoughts regarding contracting out ground services at LAS, should be something like: "We've made the right decision - we are not just reducing the cost of operation, we are also minimizing the risk associated with potential unionizing of yet another employee group".

I read it yes. But still would have liked to hear what he actually was going to say about it. If he would have gone so far as to say that was the reason they did it.


User currently offlinelucky777 From United States of America, joined Oct 2008, 537 posts, RR: 0
Reply 4, posted (3 years 4 months 5 days 19 hours ago) and read 2266 times:

Quoting beryllium (Reply 2):
He is talking at length about unionization issues in this Q&A session.

Indeed he does...and unfortunately he seems blinded by his ignorance of what matters most to employees of a well-run company. Happy employees don't vote for overwhelming union representation, clearly Allegiant management has know for some time there were labor issues with their flight attendants and chose to (for the sake of the shareholders) ignore the valid concerns of that particular workgroup. So instead of blaming this "third-party" as he likes to call the TWU, perhaps he should take a look in the mirror.

Truthfully, the guy sounds like your typical, arrogant, out-of-touch corporate schmuck.

[Edited 2011-03-07 15:38:39]

User currently offlineTUSdawg23 From United States of America, joined May 2010, 106 posts, RR: 0
Reply 5, posted (3 years 4 months 5 days 18 hours ago) and read 2224 times:

Personally Mr. Levy didnt come across as a sleeze bag at all. He came across as pretty straight forward and someone who is knowledgeable about the industry and his airline. I thought the sections talking about the Hawaii operation, their plans with the 757 and things like how they're trying out both LGB-BLI and LAX-BLI to see which one gets a higher pax catchment were very interesting. He was honest in the mistakes the airline has made with respect to getting the Hawaii operation off the ground, the struggles with the LGB operation and how surprised he was by B6's aggressive reaction to Allegiant starting up LAS-LGB.

I dont necessarily agree with Allegiant's nickel and diming approach and it seems now that they will be heading in that direction, but Levy gave a logical explanation for why they do it. The fuel hedging thing I can also understand because Allegiant's aircraft utilization rate is much lower than the industry average and they have a lot more sources of revenue to base their operation off of than just flying pax from point a to point B. So all and all, I thought it was a very informative and interesting look at what the airline is doing.


User currently offlineberyllium From , joined Dec 1969, posts, RR:
Reply 6, posted (3 years 4 months 5 days 18 hours ago) and read 2214 times:

Quoting hatbutton (Reply 3):
I read it yes. But still would have liked to hear what he actually was going to say about it. If he would have gone so far as to say that was the reason they did it.

He would be talking about rising fuel prices and the necessity to keep costs in check (that's everyone's line these days). Since fuel prices are outside of their control, labor costs come next, and outsourcing of ground handling at their major hub certainly helps them to achieve that target (at least to a certain extent).
He probably wouldn't admit publicly that they have decided to outsource ground handling at LAS in order to avoid unionization of ground handling employees (even though it very well might be one of the major reasons).


User currently offlinethegreatRDU From United States of America, joined Mar 2006, 2310 posts, RR: 4
Reply 7, posted (3 years 4 months 5 days 1 hour ago) and read 1993 times:

He definitely had a combative tone towards unions nothing wrong with that....and he made sure he got rid of his in-house rampers quick just in case...
I don't like that fuel pricing thing they are trying to implement and I hope the governing bodies kill that...



Our Returning Champion
User currently offlinelucky777 From United States of America, joined Oct 2008, 537 posts, RR: 0
Reply 8, posted (3 years 4 months 5 days ago) and read 1937 times:

Quoting thegreatRDU (Reply 7):
He definitely had a combative tone towards unions nothing wrong with that

Yeah, apparently he has that tone with a lot of workers....hence the flight attendants overwhelming willingness to go union on him. You'll catch more flies with honey...


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