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Another US Airline In Trouble: Allegiant Air

Fri Dec 08, 2000 1:21 pm

What a horrible week in the commercial aviation industry...kinda makes me wonder who else is struggling.

Thursday December 7, 10:01 pm Eastern Time
Press Release
Allegiant Air Announces Major Flight Reductions Due to High Fuel Prices
FRESNO, Calif.--(BUSINESS WIRE)--Dec. 7, 2000--Allegiant Air, an all-jet air carrier providing scheduled and charter operations in the West, today announced that skyrocketing jet fuel prices has led to the suspension of service to four cities on its route network effective December 8, 2000. The airline said that it is continuing service between Fresno and Las Vegas, its most productive scheduled route, and will continue its charter operations.

The airline said it has suspended scheduled flight operations to Long Beach and South Lake Tahoe in California; Reno, Nevada; and Portland, Oregon because continuation of service on those routes is not economical in the current operating environment.

Allegiant Air said it has seen jet fuel prices climb from 80 cents a gallon one year ago to current prices at $1.38 a gallon, a 73% year-over-year increase in the airline's single largest expense item.

The company said customers with confirmed reservations on affected flights are being contacted by the airline to advise of the flight cancellations and to begin processing refunds.

Allegiant Air said that station personnel at the affected airports are being furloughed as a result of the schedule reductions.

The company said it continues in good standing with the Department of Transportation and the Federal Aeronautics Administration as a certificated scheduled air carrier.

``We regret it is necessary for Allegiant Air to suspend our scheduled flight operations in the affected markets after our record of superior performance and schedule reliability,'' said Mitch Allee, Chairman and CEO. ``Despite the best efforts of the company and our people to deliver an outstanding airline product, and the overwhelming support and encouragement from the communities we serve and our customers who have flown with us, this move is the best course of action in the current economic environment.

``It is unfortunate that just as Allegiant Air was being recognized for our outstanding operation and ready to move forward with the next phase of our expansion we were hit with these sharply higher fuel prices,'' said Allee.

``We are continuing our Fresno-Las Vegas flights and charter operations with service to our customers and the welfare of our dedicated employees foremost in our minds,'' Allee said.

About the Company

Allegiant Air, Inc., founded in 1997, is certificated by the U.S. Department of Transportation as a ``scheduled air carrier'' with authority to fly scheduled and charter airline operations throughout the U.S. Headquartered in Fresno, California, the privately-held company operates an all jet fleet of four DC-9 aircraft.

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RE: Another US Airline In Trouble: Allegiant Air

Sat Dec 09, 2000 2:19 am


Poor little fellow, I had a feeling they weren't going to make it. Long Beach has such bad luck with these little airlines coming in and starting service and then leaving once they go bankrupt. This is the second Fresno based airline that goes down. I know they're not out of the picture, but I think they have a skim amount of chance of making it. Hopefully, they'll lease out those planes or find charters for them to make it through.

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RE: Another US Airline In Trouble: Allegiant Air

Sat Dec 09, 2000 4:05 am

I too hope that they find a niche to exploit and can work it. I always wondered about Long Beach though and ots' ability to generate enough profitable traffic.

Many cities that are either Fresno sized in population or overall economic activity are becomeing more and more the provence of RJ's and limited mainline jet service,ie: AA's FAT-DFW service.

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