LeoDF
Topic Author
Posts: 349
Joined: Mon Aug 02, 1999 11:44 am

Allegro Goes Bankrupt!

Tue Nov 18, 2003 1:41 am

Hi everybody!

After all the good news generated in Mexico, here's one that I did not want to hear. According to justplanes.com, Allegro was forced to shut down, after they could not pay leasing fees on 14 aircraft and 12 engines.

This should be a direct result of the impoundment of 3 aircraft in the US, MD-83's I believe, after Pegasus sued for payment delays. This caused the cancellation of all of Allegro's flights to the US, including their popular charters, which, according to the Commercial Director, accounted for 60% of all revenue passengers.

Oh well, another defunct airline in Mexico in less than 6 months. This could be a great opportunity for Azteca and Aviacsa! Let's see what's their strategy!

Farewell Allegro!

A. De Leo
Lloyd Aereo Boliviano
 
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mariner
Posts: 18176
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RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 1:50 am

LeoDF:

Here's some more about it:

http://www.timesstar.com/Stories/0,1413,125~1486~1768946,00.html

cheers

mariner
aeternum nauta
 
LeoDF
Topic Author
Posts: 349
Joined: Mon Aug 02, 1999 11:44 am

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 1:54 am

Thank you very much Mariner!

It's a pity to read this kind of news!!

Lloyd Aereo Boliviano
 
Mexicana757
Posts: 2635
Joined: Fri Apr 20, 2001 3:21 pm

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 2:49 am

Sad to see Allegro heading in the bankruptcy direction. They should just give back the airplanes that are owned by Pegasus. In the link that Mariner gave us it says that they plan to fly within Mexico only since they are banned from flying in the United States. Owing $40 million in fees is a lot of money. It will be tough to pay that off if their business is going to be only withing Mexico.

Another airline with bad management. By being banned to fly into the U.S. thats their death. Since it says it was 60% of their revenues.
 
ghost77
Posts: 4461
Joined: Wed Mar 01, 2000 2:07 pm

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 2:50 am

Indeed bad news, but I think it was something that sooner or later was going to happen taking into consideration that the B727 fleet was grounded and a lot of flights were cancelled a month ago.

Ok, before their crisis and a fleet of 13 aircraft (6 727s, 7 MD80s) LL had flights between:

OAK-CUN
OAK-GDL
OAK-BJX
OAK-GDL-MEx
OAK-BJX-TLC

LAS-TIJ-CUN
LAS-TIJ-BJX-CUN
LAS-TIJ-GDL-CUN
TIJ-LAS
LAS-TIJ-MEx
LAS-TIJ-OAK
LAS-TIJ-TLC
TIJ-BJX
TIJ-GDL

SJD-PVR-OAK

GDL-CUN
GDL-MEx

After studying the routes, I could say:

Mexicana will get benefits from OAK routes and will increase frequencies or ugprade equipment to this airport.

I think Aviacsa will be the one getting all pax from LAS, TIJ and BJX.

And those daily routes to CUN from TIJ, GDL, MEx, passengers will be going now with Aviacsa, Azteca and Magnicharters....!

Was nice to see you in our skies Allegro! Hope all LL's staff find a job soon in another airline!

Ricardo Morales - APM  Smile

Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
 
fly727
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RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 3:33 am

Allegro is NOT bankrupt and is STILL operating domestic destinations with very acceptable loads in the high 60's.

They grounded the fleet of fuel-thirsty 727s just like any other airline in the world is doing. Because of this move they also grounded some 60 pilots that are getting almost they entire paycheck despite they are not flying a single hour. They have re-negotiated their debt with their main creditors (including Mexican authorities) and AFAIK they are about to negotiate with Pegasus.

Allegro already has non-Pegasus metal about to be ready to go and the plans for a complete substitution of their MD80 with newer equipment is still going on.

It's been tough, specially for the entirely private airlines as Allegro, but as an insider, let me cool you down. It is still up and going. Future is not very certain but Allegro is already taking the right steps towards recovery. If continue in that path the future should be much clearer.

Saludos
RM  Smile
There are no stupid questions... just stupid people!
 
LeoDF
Topic Author
Posts: 349
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RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 6:29 am

So, Allegro is still flying within Mexico?

But even though, they still owe a lot of money! Court decision!

Well let's see what happens, I'm looking towards the sky to see an Allegro, but haven't seen one all day!

If indeed they are still operating, sooner or later, to my point of view, they'll have to cease operations. We could see some pressure from the FAA and of course Mexico's DGAC, will probably not argue with that!

Hope it turns out fot the best!

A. De Leo
Lloyd Aereo Boliviano
 
LatinPlane
Posts: 2471
Joined: Mon Dec 27, 1999 11:05 am

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 6:39 am


So what domestic routes is Allegro still flying? Hope they resolve their problems.

 SmileLatinPlane
Pan Am - The World's Most Experienced Airline.
 
fly727
Posts: 1752
Joined: Tue Jul 29, 2003 8:27 am

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 8:35 am

Believe me, we are still in the air and will be for the immediate future.... some good surprises are just around the corner; can't say more. Stay tuned.

Currently serving: CUN, MEX, GDL, TIJ, BJX, TIJ and TLC.

Saludos
RM  Smile
There are no stupid questions... just stupid people!
 
copaair737
Posts: 3571
Joined: Sat Aug 30, 2003 5:00 am

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 10:08 am

Could Aviacsa open up OAK or SFO in the future?
Livin' on Reds, Vitamin C, and Cocaine
 
ORD747CLE
Posts: 236
Joined: Thu Nov 06, 2003 10:31 am

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 10:19 am

I'm sorry to hear about Allegro, I really am. I feel bad for the people that were put out of work (although it sounds like many are still being paid!).

However, as a consumer, I flew two segments on Allegro, both charter: DAY-CUN, CUN-DAY. I have never seen a plane with so many seats packed in, the seat pitch was horrible and I felt like I was on a refugee plane there were so many seats so close together. The service was a joke and the boarding process was complete chaos.

Also, nobody spoke English and we had to stop twice on our way to CUN to gas up because it was cheaper in the South. We even saw the pilot pay the gas company in cash!!

I am surprised they were even allowed to fly into the US in the first place.

Sorry again to everyone involved, I hope things work out so nobody else loses their jobs.

Ord747Cle
 
LeoDF
Topic Author
Posts: 349
Joined: Mon Aug 02, 1999 11:44 am

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 12:02 pm

Fly727:
It seems as if you worked for Allegro. The plans sound interesting! Hope to see them soon materialized!

Lloyd Aereo Boliviano
 
IMissPiedmont
Posts: 6200
Joined: Wed May 23, 2001 12:58 pm

RE: Allegro Goes Bankrupt!

Tue Nov 18, 2003 1:23 pm

"..the impoundment of 3 aircraft in the US, MD-83's I believe."

That would be the 2 727s and 1 MD-80 mentioned in a previous thred. All 3 are ditting on the Hamilton Aviation ramp at this minute. No others as of this morning. If Allegro is truly dead, there will be more by Wednesday or Thursday.

How many more sardines can be fit into that can?
The day you stop learning is the day you should die.
 
fly727
Posts: 1752
Joined: Tue Jul 29, 2003 8:27 am

RE: Allegro Goes Bankrupt!

Wed Nov 19, 2003 9:04 am

No., I'm not currently employed by the airline; I'm freelance who offers its knowledge and expertise in the training field, and Allegro is just another of my customers; but I happen to know several members of the board and they frequently disclose to me vital information. Trust me., if this works, we'll have Allegro for many years to come.

RM  Smile
There are no stupid questions... just stupid people!

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