Groundbreaking ceremony for Sunseeker Resort is this week, Wednesday March 20.

Allegiant announced that Sunseeker Resort construction financing is being provided by TPG Sixth Street Partners (TSSP). Initially TSSP is providing $175 million for phase 1 construction. TSSP may eventually supply up to $1 billion.

Phase 1 will consist of 510 hotel rooms, 189 extended-stay suite units, conference space, restaurants, bars and shops.
http://www.prnewswire.com/news-releases/allegiant-and-tpg-sixth-street-partners-announce-up-to-1-billion-partnership-to-develop-sunseeker-resorts-imprint-300813778.html
http://www.reviewjournal.com/business/allegiant-gets-175m-loan-to-build-florida-resort-project-1621006/
http://www.heraldtribune.com/news/20190318/allegiant-secures-initial-funding-for-charlotte-harbor-resort/1

A320 N243NV is en route from BQN to PIE to enter active service. 47 x A320 active now at Allegiant.
https://flightaware.com/live/flight/N243NV

A320 EC-HTD registration as N245NV is in process at OSR, and should ferry soon to BQN.

FATFlyer wrote:

Allegiant released an updated management presentation a week ago.

Among the info, current plans are:
2019 - Fleet to grow to 93 by year-end. Adding 6 A319s; 3 A320s (186 seats); 8 A320s (177 seats)
2020 - Fleet to grow to 102 by year-end. Adding 9 A320s

http://ir.allegiantair.com/static-files/dff23048-34da-443f-affc-73eccd91fc0d

First, thank you for the link.
I'm curious as to why no A319s in 2020? I would guess Allegiant will probably expand more, but that the level of expansion will depend on profit expectations as well as aircraft pricing (due to risk and costs that will impact profit). While the A319 seats substantially less than the A320 (156 vs. 186), in Allegiant's low utilization model, I would have to imagine the A319s are selling cheap.

I can only speculate others have noted the bargain on A319s and bid them up enough the used A320s make more sense. Value will always be a function of utilization as well as profit per flight. I speculate when demand picks up during busy season, more 186 seat aircraft are needed than 156 seat...

Lightsaber

lightsaber wrote:

FATFlyer wrote:

Allegiant released an updated management presentation a week ago.

Among the info, current plans are:
2019 - Fleet to grow to 93 by year-end. Adding 6 A319s; 3 A320s (186 seats); 8 A320s (177 seats)
2020 - Fleet to grow to 102 by year-end. Adding 9 A320s

http://ir.allegiantair.com/static-files/dff23048-34da-443f-affc-73eccd91fc0d

First, thank you for the link.
I'm curious as to why no A319s in 2020? I would guess Allegiant will probably expand more, but that the level of expansion will depend on profit expectations as well as aircraft pricing (due to risk and costs that will impact profit). While the A319 seats substantially less than the A320 (156 vs. 186), in Allegiant's low utilization model, I would have to imagine the A319s are selling cheap.

I can only speculate others have noted the bargain on A319s and bid them up enough the used A320s make more sense. Value will always be a function of utilization as well as profit per flight. I speculate when demand picks up during busy season, more 186 seat aircraft are needed than 156 seat...

Lightsaber

I think the lack of 8 exit A319s is a large factor in the fleet plan moving forward. G4 has cornered the used market with those A319s and moving forward, I think A320s will be the aircraft of choice. No sense in having an additional subfleet of A319s with less then 156 seats.

Well, Germania had some A319 with 8 exits over the wings. Some years younger than the aircraft Easyjet phases out this year. As no investors were ready to purchase Germania, they will now be retuned to their lessors. Maybe G4 will be interested?

LHA320 wrote:

Well, Germania had some A319 with 8 exits over the wings. Some years younger than the aircraft Easyjet phases out this year. As no investors were ready to purchase Germania, they will now be retuned to their lessors. Maybe G4 will be interested?

EasyJet and Germania are both sources.
EasyJet has enough they should want to hand back to allow a few in 2020. I cannot imagine the price of used A319s has gone up.

I think it is a preference for A320s, but a willingness to buy A319s cheap.

Lightsaber

lightsaber wrote:

LHA320 wrote:

Well, Germania had some A319 with 8 exits over the wings. Some years younger than the aircraft Easyjet phases out this year. As no investors were ready to purchase Germania, they will now be retuned to their lessors. Maybe G4 will be interested?

EasyJet and Germania are both sources.
EasyJet has enough they should want to hand back to allow a few in 2020. I cannot imagine the price of used A319s has gone up.

I think it is a preference for A320s, but a willingness to buy A319s cheap.

Lightsaber

It may have not gone up, but I think it is stable. With many airlines buying or leasing in used A319 (AA/UA/G4), the market is now quite big compared to the 73G. When WN purchased all the used 73G it was the other way around. At the end both airplanes have to offer a cheap purchase price, because for most missions their bigger siblings are more efficient and preferenced

If my sources are correct, Germania had 11 A319 with double exits from various lessors which seem to be available within this year. Don't know about U2 and their retirement plan, but there should be enough planes on the market to grow the fleet. So, as Lightsaber said, preference seems to be mainly on the A320, maybe some A321s some day, who knows...

LHA320 wrote:

If my sources are correct, Germania had 11 A319 with double exits from various lessors which seem to be available within this year. Don't know about U2 and their retirement plan, but there should be enough planes on the market to grow the fleet. So, as Lightsaber said, preference seems to be mainly on the A320, maybe some A321s some day, who knows...

The difference is that Allegiant buys their used airbus, so it really depends on whether the aircraft are available for sale or not and at what price. I’m sure if Allegiant can get a used A320 for the same price as the 319s, they would opt for the 320s. That being said, the 319s fit a nice niche at G4 and work especially well during the slow months. I don’t see A321s coming into the fleet anytime soon. The second hand A321 market is pretty hot right now and it’s a lot of seats to fill on a continuous basis. Only a handful of markets that G4 flies to could support year round A321 service.

It seems G4 is adding 1-2 additional used A320 orders to the books every couple of weeks now. Do they have an actual acquisition plan moving forward or are they just picking up used ac as deals become available?

A320 N245NV is en route from OSR-KEF-BGR-BQN for delivery.
https://flightaware.com/live/flight/N245NV

What will Allegiant's next vacation destination be?

Reno
USVI
South Texas
Branson
Start International flights

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ibthebigd wrote:

What will Allegiant's next vacation destination be?

Reno
USVI
South Texas
Branson
Start International flights

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Allegiant does serve Branson but via the Springfield-Branson National Airport, not BKG. There is even nearby by XNA as well. It was the case(I haven't looked lately) that they really haven't pushed hard to grow the 'TO' Branson traffic but focused more on the 'TO' Florida and other end of the flights traffic. If they were to shift to BKG, it would be a big blow to Springfield.

If I were Allegiant, I would approach Galveston about starting operations there. I think Galveston isn't against a return to commercial traffic and it is actually a goal.

I would also like to see they them to expand east to west vacation traffic, I would love to see something like MEM/BZN or JAC during the summer to connect places like Yellowstone NP better.

ibthebigd wrote:

What will Allegiant's next vacation destination be?
South Texas

G4 already serves MFE and LRD in South Texas, but there are airports along the Texas Gulf Coast such as BPT, HOU, CRP, HRL, and BRO that G4 could add service to.

WaywardMemphian wrote:

ibthebigd wrote:

What will Allegiant's next vacation destination be?

Reno
USVI
South Texas
Branson
Start International flights

Sent from my SM-G950U using Tapatalk

Allegiant does serve Branson but via the Springfield-Branson National Airport, not BKG. There is even nearby by XNA as well. It was the case(I haven't looked lately) that they really haven't pushed hard to grow the 'TO' Branson traffic but focused more on the 'TO' Florida and other end of the flights traffic. If they were to shift to BKG, it would be a big blow to Springfield.

If I were Allegiant, I would approach Galveston about starting operations there. I think Galveston isn't against a return to commercial traffic and it is actually a goal.

I would also like to see they them to expand east to west vacation traffic, I would love to see something like MEM/BZN or JAC during the summer to connect places like Yellowstone NP better.

Galveston’s main runway is only 6,000 feet. They would need to extend it 500 to 1000 feet to handle the A319/320.

WeatherPilot wrote:

WaywardMemphian wrote:

If I were Allegiant, I would approach Galveston about starting operations there. I think Galveston isn't against a return to commercial traffic and it is actually a goal.

Galveston’s main runway is only 6,000 feet. They would need to extend it 500 to 1000 feet to handle the A319/320.

HOU is close enough to Galveston to be a viable option for those traveling to Galveston, and there is enough room at HOU to accommodate G4 service to HOU.

If G4 does add service to HOU, G4 could add nonstop service to HOU from ABQ, CVG, VPS, IND, TYS, LAS, MYR, MSY, SFB, AZA, SRQ, and SAV.

IAmGaroott wrote:

It seems G4 is adding 1-2 additional used A320 orders to the books every couple of weeks now. Do they have an actual acquisition plan moving forward or are they just picking up used ac as deals become available?

G4 has tough price targets. If you look at their quarterly presentations, they have a planned aircraft acquisition strategy. But they adapt quick. If Airbus/CFM makes them a great offer for new CEOs, they have bought more (if GECAS helps).

They prefer A320s. Effectively, G4s purchase price was helping set scrap value of the A319s. Then other airlines realized the opportunity and bid up (slightly) used A319 prices above where G4 prefers a used A320.

But as deals become available, they evaluate the offer. They can pivot on 12+ aircraft per year based on the deal. Please recall they only have a busy season for 5 months per year, spread out over the summer, spring break, Thanksgiving, and some other busy weekends

Price is important as very few aircraft fly for them in September. If they expand faster, the aircraft sits more. The new A320s probably fly only 3000 to 3500 hours per year. The down season limits their new fleet to under 30. Most airlines only buy new for 3500+ hours per year. Last I was able to look at G4s flying, this subfleet is only 30% to 35% of G4s fleet. G4 has opted to minimize recession risk by under buying new aircraft for these lines.

Their mid fleet only flies 2000 to 2600 hours per year. Hence why they like 12 to 15 year old aircraft.

Accelerating growth means more aircraft flying 1500 to 2000 hours per year. That means buying opportunistically (cheap). That was MD-80 flying. That is only flying Thursday through Sunday during busy season with half (or less) flying on Monday. This segment is really existing G4 aircraft aging to this duty (paid off, less efficient frames or nearly paid off older aircraft). This group is ruled by fixed costs (acquisition costs including maintenance to bring up to FAA standards).

I expect used CEO costs to temporarily spike due to the MAX grounding. But there are still frames no one else wants that G4 is willing to take a risk on for the right price (IIRC Saudi aircraft).

Lightsaber

Here are the presentations:

http://ir.allegiantair.com/presentations

jplatts wrote:

ibthebigd wrote:

What will Allegiant's next vacation destination be?
South Texas

G4 already serves MFE and LRD in South Texas, but there are airports along the Texas Gulf Coast such as BPT, HOU, CRP, HRL, and BRO that G4 could add service to.

Allegiant already tried BRO-LAS in 2015 but pulled out in six months. Unless they moved to HRL from MFE to capture South Padre Island and the entire valley market like Sun Country and Frontier do, it won't happen. I dont think they will chase Padre as a destination. They have high load factors at MFE, and they wouldn't open two stations so close together like at HRL.

Any possibility of additional EWR flying? PIE, SFB, SJU, LAS Or AUS?


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STT757 wrote:

Any possibility of additional EWR flying? PIE, SFB, SJU, LAS Or AUS?


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I had asked about the possibility of EWR-PIE. And in general the reason they're not growing more out of EWR was because it is a slot controlled airport and G4 tends to not be on time. I guess EWR has some strict timing policy and you can't be over a certain allowed late time. This was all word of mouth so take it for what it's worth but I've been asking about that possibility.

Not major but something nonetheless-the Cedar Rapids to Nashville route that is starting next month for summer seasonal was originally going to be Monday and Friday flights is now going to be 3x weekly as Wednesday flights have been added to the schedule. According to the airport director at the Eastern Iowa Airport it’s selling very well. I hope it can continue beyond summer and into the fall. I do think Nashville will only grow more for Allegiant in the future

deltadudejg wrote:

STT757 wrote:

Any possibility of additional EWR flying? PIE, SFB, SJU, LAS Or AUS?


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I had asked about the possibility of EWR-PIE. And in general the reason they're not growing more out of EWR was because it is a slot controlled airport and G4 tends to not be on time. I guess EWR has some strict timing policy and you can't be over a certain allowed late time. This was all word of mouth so take it for what it's worth but I've been asking about that possibility.

That sounds like total and utter nonsense. Whoever your source is sounds like they have no idea what they are talking about. Gate space, loads and slots are some of main factors for not expanding rapidly out of EWR. Even in the mornings, gate space is at a premium out of the Terminal that Allegiant operates out of. Allegiant actually has a decent on time record out of EWR, barring delays that are prone to all EWR flights.

deltadudejg wrote:

STT757 wrote:

Any possibility of additional EWR flying? PIE, SFB, SJU, LAS Or AUS?

I had asked about the possibility of EWR-PIE. And in general the reason they're not growing more out of EWR was because it is a slot controlled airport and G4 tends to not be on time. I guess EWR has some strict timing policy and you can't be over a certain allowed late time. This was all word of mouth so take it for what it's worth but I've been asking about that possibility.

Per the DOT Air Travel Consumer Reports, Allegiant's on-time arrival rates at EWR have been the best among domestic carriers (mainline and regional) most months. In January 2019 (most recent available) G4 was the best at EWR with a 76.9% on-time arrival rate; in December 2018 they were on top of the list for EWR with an 88.2% on-time rate.

I don't know who you asked but they either did not look for numbers or were relying on faulty knowledge.

It appears, according to wikipedia anyway, that Allegiant has more planes than Frontier now. Allegiant at 87 vs Frontier at 85.

I saw in my local paper (read: internet) that Concord Regional Airport (USA/KJQF) are currently in the process of getting a northbound flight. My guess would be EWR.

Allegiant currently goes SFB PIE MSY FLL and seasonally VPS I believe.

MGC1191 wrote:

I saw in my local paper (read: internet) that Concord Regional Airport (USA/KJQF) are currently in the process of getting a northbound flight. My guess would be EWR.

Allegiant currently goes SFB PIE MSY FLL and seasonally VPS I believe.

I wouldn't put it past allegiant to do an Upstate NY airport to Concord. There are a lot of people from NY that have transplanted to North Carolina. Some of my family included.

I am surprised Allegiant has not tested the waters at SWF. The Hudson Valley can definitely support.

rj1385 wrote:

I am surprised Allegiant has not tested the waters at SWF. The Hudson Valley can definitely support.

Allegiant already flies there, or do you mean Stewart to Concord?

WeatherPilot wrote:

rj1385 wrote:

I am surprised Allegiant has not tested the waters at SWF. The Hudson Valley can definitely support.

Allegiant already flies there, or do you mean Stewart to Concord?

Sure, but more a focus city for them. EWR is good, but there can be so much more. SWF to BNA, MSY, and more.

A320 EC-JSK (MSN 2807) has been re-registered as N275NV and is at OSR for paint. F-WTBH (MSN 2875) has been re-registered as N282NV and is at SNN along with N283NV (MSN 2920) for paint & refurb. N279NV (MSN 5250) is at VQQ for paint & refurb. N244NV and N245NV are still at BQN for refurb.

Looks like Allegiant filed with the DOT to start scheduled service to Mexico today. Let the speculation about where they fly from and to begin!

That's great news!

cbphoto wrote:

Looks like Allegiant filed with the DOT to start scheduled service to Mexico today. Let the speculation about where they fly from and to begin!

They'll fly from CVG/PIT/IND-CUN

They are flying Charters from IND now to the Caribbean

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The application is here:
http://www.regulations.gov/document?D=DOT-OST-2019-0067-0001

In a footnote in the application, Allegiant says it wants to:

1 More specifically, under both its certificate and exemption applications, Allegiant requests authority to engage in (1) scheduled foreign air transportation of persons, property and mail (a) from a point or points in the United States to a point or points in Mexico, (b) from Dallas/Fort Worth and San Antonio to Mexico City, Toluca, and Acapulco, and beyond to points in Panama and beyond, (c) from New York, Washington, Baltimore, Los Angeles, and Houston, to Mexico City and Toluca, and beyond to a point or points in Central and/or South America, and (d) from a point or points in the United States, via an intermediate point or points, to a point or points in Mexico, and beyond, as mutually agreed in writing by the aeronautical authorities of the U.S. and Mexico; and (2) scheduled foreign air transportation of property and mail (a) from a point or points in the United States, via an intermediate point or points, to a point or points in Mexico, and beyond, and (b) from a point or points jn Mexico to any point.

https://www.flightglobal.com/news/artic ... ds-455006/

"Separately, the ultra low-cost carrier is continuing to study international service – which it has evaluated in previous years but not launched. "We are hopeful to be selling by the end of this year," says Wells. "We are not necessarily committing to it but that's where we want to be."

I wonder if they will try to get some of those MEX slots that WN returned, or if that is even possible at this point.

FATFlyer wrote:

The application is here:
http://www.regulations.gov/document?D=DOT-OST-2019-0067-0001

In a footnote in the application, Allegiant says it wants to:

1 More specifically, under both its certificate and exemption applications, Allegiant requests authority to engage in (1) scheduled foreign air transportation of persons, property and mail (a) from a point or points in the United States to a point or points in Mexico, (b) from Dallas/Fort Worth and San Antonio to Mexico City, Toluca, and Acapulco, and beyond to points in Panama and beyond, (c) from New York, Washington, Baltimore, Los Angeles, and Houston, to Mexico City and Toluca, and beyond to a point or points in Central and/or South America, and (d) from a point or points in the United States, via an intermediate point or points, to a point or points in Mexico, and beyond, as mutually agreed in writing by the aeronautical authorities of the U.S. and Mexico; and (2) scheduled foreign air transportation of property and mail (a) from a point or points in the United States, via an intermediate point or points, to a point or points in Mexico, and beyond, and (b) from a point or points jn Mexico to any point.

In addition to nonstop international routes out of DFW and HOU, there are also some domestic nonstop routes that could be added by G4 out of DFW and HOU such as DFW-BZN, HOU-BZN, DFW-CVG, HOU-CVG, DFW-VPS, HOU-VPS, DFW-GPT, HOU-GPT, DFW-MTJ, HOU-MTJ, DFW-SFB, HOU-SFB, DFW-AZA, HOU-AZA, DFW-SRQ, HOU-SRQ, DFW-SAV, and HOU-SAV.

Allegiant's Q1 conference call is Wednesday April 24. My guess is Mexico flights and the Sunseeker Resort starting construction will be large topics of discussion.

sprxUSA wrote:

Why do you post such items? They COULD fly nonstop from DFW and HOU to every damn airport they fly to.

There are some domestic leisure destinations not currently served by WN or NK that could be served nonstop from DFW and Houston on G4 if G4 adds service to DFW and Houston. Some of the domestic leisure destinations that could be served nonstop out of DFW and Houston on G4 also currently lack nonstop competition in both the DFW and Houston markets.

I mentioned G4 adding nonstop service to DFW and Houston from CVG as possibilities since CVG is the largest G4 station in the Midwest and since G4 has added nonstop service out of CVG to some of its new destinations during the last 3 years.

In addition to international destinations, G4 will probably add nonstop service to a few domestic leisure destinations out of DFW and Houston if G4 adds service to DFW and Houston.

A320 N275NV is en route from OSR-KEF-BGR-BQN for delivery.
https://flightaware.com/live/flight/N275NV
https://m.planespotters.net/photo/94464 ... s-a320-214

A320 N282NV is en route from SNN-BGR-BQN for delivery.
https://flightaware.com/live/flight/N282NV

A320 N244NV is en route from BQN to SFB to enter active service. 48 x A320 active now at Allegiant.
https://flightaware.com/live/flight/N244NV

Anybody know why G4 would have sent two planes to SYR and then onto Des Moines (DSM)?

https://flightaware.com/live/flight/AAY ... /KSYR/KDSM
https://flightaware.com/live/flight/AAY ... /KSYR/KDSM

The only things I can think of are Military Charters, which I didn't think G4 did, or to get to a maintenace or outfitting facility. If it's the second, why would they fly to SYR first?

WeatherPilot wrote:

Anybody know why G4 would have sent two planes to SYR and then onto Des Moines (DSM)?

https://flightaware.com/live/flight/AAY ... /KSYR/KDSM
https://flightaware.com/live/flight/AAY ... /KSYR/KDSM

The only things I can think of are Military Charters, which I didn't think G4 did, or to get to a maintenace or outfitting facility. If it's the second, why would they fly to SYR first?

They do military charters. I worked a military charter last year at PIT. It flew from RIV-PIT and dropped off a bunch of soldiers coming back from training drills. Bunch of oversized bags for all their gear.

WeatherPilot wrote:

Anybody know why G4 would have sent two planes to SYR and then onto Des Moines (DSM)?

https://flightaware.com/live/flight/AAY ... /KSYR/KDSM
https://flightaware.com/live/flight/AAY ... /KSYR/KDSM

The only things I can think of are Military Charters, which I didn't think G4 did, or to get to a maintenace or outfitting facility. If it's the second, why would they fly to SYR first?

They have military charters. It was definitely a charter of some variety since it was an 8xxx flight. If it was a mx ferry or a reposition it would be a 9xxx flight.

Delta28L wrote:

They do military charters. I worked a military charter last year at PIT. It flew from RIV-PIT and dropped off a bunch of soldiers coming back from training drills. Bunch of oversized bags for all their gear.

Thanks for the clarification. I wasn't sure if they did or not because I never recalled G4 ever doing military charters out of SYR before.