Posts: 442
Joined: Mon Feb 05, 2007 1:11 pm

Allegiant's Growth Potential

Sat Mar 10, 2007 4:49 am

Allegiant continues to fast-track their vacation focused flying - we all know that. Some of the other discounters have suggested that the Wall Street love affair with Allegiant will cool as they run out of medium and small markets that can support their concept flying to the current focus cities of Las Vegas, Tampa, and Orlando. (Look at the recent run up in service in Oregon, for example as to whether they are close to "max'ing out" opportunities. They're entry to EUG is interested given the existing service of HP/US to LAS - it's almost out of character).

I'm curious, looking at continuing their business plan of flying linking smaller, non-competitive markets with leisure destinations, what options do you see for expansion? I'm more curious as to Las Vegas than the Florida markets. With all that cash from the IPO and their profitability, I doubt that we're anywhere close to the end of the growth curve, which at this point, is pretty steep (and successful at that).

I'd welcome your thoughts on this....