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FATFlyer
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Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 4:59 pm

Allegiant announced it has purchased 6 A319s from Cebu Pacific. Deliveries run from late 2015 to the end of 2016.
http://ir.allegiantair.com/phoenix.z...7578&p=irol-newsArticle&ID=2018788

With this purchase, G4's fleet plan now looks like this:
A320: 2015E- 10 2016E- 10 2017E- 14 2018E- 14
A319: 2015E- 11 2016E- 17 2017E- 18 2018E- 30
MD-80: 2015E- 53 2016E- 53 2017E- 53 2018E- 53
757: 2015E- 6 2016E- 6 2017E- 6 2018E- 6

Total: 2015E- 80 2016E- 86 2017E- 91 2018E- 103

Allegiant recently said they would like to add 7 or 8 aircraft per year. I would not be surprised to see another purchase announced with deliveries in 2016/2017.
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JetBlueGuy2006
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 5:37 pm

Is this a longer term strategy to phase out the MD-80's?

It won't happen for quite a long time, but I would suspect that the secondary market for A319 and A320 will only continue to grow and make it more economical for G4 to find well priced frames.
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AWACSooner
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 5:42 pm

Quoting JetBlueGuy2006 (Reply 1):
Is this a longer term strategy to phase out the MD-80's?

With gas being cheap right now, they might as well keep them for expansion.
 
roseflyer
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 5:53 pm

Quoting JetBlueGuy2006 (Reply 1):
Is this a longer term strategy to phase out the MD-80's?

It won't happen for quite a long time, but I would suspect that the secondary market for A319 and A320 will only continue to grow and make it more economical for G4 to find well priced frames.

The A319 has the lowest acquisition cost of any airplane in the 737NG/A320 family (excluding low volume sales for the A318 or 736) with reasonably low cycles. I believe that is why they are interested in more A319s. There are some older A320s on the market as well with attractive prices but those tend to be early 1990s build airplanes with high cycle counts.

I think with time Allegiant may end up splitting its fleet with whatever is cheap on the used airplane market. They may purchase more A320s or even A321s if they find a good price. I wouldn't be surprised to see them pick up 737NGs in the future, although right now on the used market, A319s and A320s are cheaper than comparable 10 year old 737NGs.
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enilria
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 6:13 pm

Quoting FATFlyer (Thread starter):
Allegiant recently said they would like to add 7 or 8 aircraft per year. I would not be surprised to see another purchase announced with deliveries in 2016/2017.
Quoting Roseflyer (Reply 3):
The A319 has the lowest acquisition cost of any airplane in the 737NG/A320 family (excluding low volume sales for the A318 or 736) with reasonably low cycles.

The plane is pretty unpopular with LCCs because of the fuel to passenger ratio. I'm a little surprised at their interest. It would make some sense to replace MD80s, but it doesn't appear they are doing that.
 
MVAair
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 6:13 pm

so theyre keeping the 75s?
 
roseflyer
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 6:30 pm

Quoting enilria (Reply 4):

The plane is pretty unpopular with LCCs because of the fuel to passenger ratio. I'm a little surprised at their interest. It would make some sense to replace MD80s, but it doesn't appear they are doing that.

Allegiant wants airplanes that are unpopular. Unpopular airplanes work better for Allegiant because they have lower acquisition costs on the used market. Allegiant a lower fleet utilization than most, but are willing to spend more on fuel.
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737-990
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 6:30 pm

Quoting enilria (Reply 4):
The plane is pretty unpopular with LCCs because of the fuel to passenger ratio. I'm a little surprised at their interest. It would make some sense to replace MD80s, but it doesn't appear they are doing that.

Aren't Cebu Pacific's A319s configured with 4 over-wing exit doors, just like EasyJet? I think they can take the pax count up to 156 or more. It is interesting that both Cebu and EasyJet have recently opted for the A320 instead of ordering more High density A319s. At least for airlines like Allegiant the low acquisition cost probably compensate the fuel to pax ratio.
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FWAERJ
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 6:52 pm

Quoting 737-990 (Reply 7):
Aren't Cebu Pacific's A319s configured with 4 over-wing exit doors, just like EasyJet? I think they can take the pax count up to 156 or more.

Yes, Cebu Pacific (5J)'s A319s have the same exit layout as U2. A few other European carriers, almost all LCCs, configure their A319s this way as well, and the (very) few A319s that Skybus had delivered factory-fresh from Airbus also had this layout. And you are correct that it allows for 156 seats on an A319, as G4 A319s have 156 seats while their A320s have 177 seats. Ironically, G4 was very close to buying some A319s from 5J before, but decided to buy ex-IB A320s instead.

G4's A319 acquisition strategy is simple: 1) Quad overwing exits only, as they are less desirable on the used market and they can pack in 12 more seats. 2) CFM56 engines only, to minimize MX costs (fortunately, only one or two quad-exit A319 operators adopted the V2500, making CFM-powered planes much easier to acquire). 3) Young, well-maintained used aircraft only - after all, buying new planes is cost-ineffective for the G4 business model. Both the U2 and 5J A319 acquisitions fit all three criteria.

I wonder how G4 will use these planes - start opening up more long routes from LAS (farther than GRR, the current longest MD-80 LAS route) and AZA (farther than FWA, the current longest AZA route regardless of type)? Short-field small airports to SFB, PIE, and PGD (the A319 is far superior to the MD-80 and even the A320 in this regard)? Connecting the dots? More growth in midsize markets a la CVG, LCK, IND, AUS, and PIT? Opening a new destination city, even if only seasonal a la MSY or MYR? Remember, this is G4 we're talking about - they have surprised us many times.
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tylersmithsjc
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 7:02 pm

Does anyone know why none of the 319's are being used for gambling and sports charters. Especially with more coming into the fleet it would be great to see them operating from Laughlin and Wendover.
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WaywardMemphian
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 7:03 pm

Quoting FWAERJ (Reply 8):
wonder how G4 will use these planes - start opening up more long routes from LAS (farther than GRR, the current longest MD-80 LAS route) and AZA (farther than FWA, the current longest AZA route regardless of type)? Short-field small airports to SFB, PIE, and PGD (the A319 is far superior to the MD-80 and even the A320 in this regard)? Connecting the dots? More growth in midsize markets a la CVG, LCK, IND, AUS, and PIT? Opening a new destination city, even if only seasonal a la MSY or MYR? Remember, this is G4 we're talking about - they have surprised us many times.

I have often been impressed with the amount of service out of Springfield Missouri to the southeast. There's a time this summer the last I checked, they were running 4x weekly to Sanford while XNA was bumped up to 3 for a short time. I could see a new route from XNA, possibly an entrance into MEM.
 
FWAERJ
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 7:26 pm

Quoting tylersmithsjc (Reply 9):

Does anyone know why none of the 319's are being used for gambling and sports charters. Especially with more coming into the fleet it would be great to see them operating from Laughlin and Wendover.

It's because they're too precious at this time to use on charters, with less than a dozen A32x total compared to 53 MD-80s in the G4 fleet (not to mention the underutilized 757 fleet).

As a result, the A32x are being deployed to G4's bread-and-butter scheduled routes. AZA is seeing all of the A319 flying so far (and will probably see more as time goes on), while the A320s are being split between SFB and PIE.

My gut feeling is that these new A319s will be the first ones based at LAS, and will allow for long, thin LAS routes like the reintroduction of GSO/FWA/TOL/PBG/TYS-LAS and potentially add new ones in cities where G4 is strong to Florida like YNG. PGD is also a possibility for an A319 base because of the A319's short-field performance, but probably not before LAS. PGD's terminal is maxed out and they're working on an expansion that won't be ready for a while, while G4 has room to grow at LAS (they basically have Concourse A to themselves).

The biggest problem with basing the A319 at LAS is that the landing fees (among the highest in the G4 system) are calculated differently from most other airports, and as such heavily favor the MD-80 over the A319 even though the loaded MTOW is almost identical - maybe G4 worked out a deal.

Quoting WaywardMemphian (Reply 10):
I have often been impressed with the amount of service out of Springfield Missouri to the southeast. There's a time this summer the last I checked, they were running 4x weekly to Sanford while XNA was bumped up to 3 for a short time

Here at FWA, I've been very impressed at G4's service to the southeast, especially in the light of the introduction of IND service. FWA has traditionally lost pax to IND, but I think the fact that G4 charges similar fares for routes from both airports (which is rarely the case) plus the factor of the drive down I-69 (if the fare is identical, why spend more on gas and parking at IND?) helps minimize cross-cannibalization.

Next month and into early April, G4 is running 4x weekly to SFB, PIE, and PGD most weeks, plus SFB and PIE often go to 3x weekly during parts of the summer. In the summer, the MYR route also does really well. G4 has been a great asset to FWA over the past eight years, and the airport management here treats them accordingly (in fact, FWA's advertising for G4 has won local ad industry awards). If G4 decides to base some of these ex-5J A319s at LAS, I think FWA is probably among the very top cities on G4 management's list.

[Edited 2015-02-23 11:29:41]
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FATFlyer
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 9:04 pm

Allegiant's ability to pick up aircraft at low prices is key to their model. The low acquisition costs allow them the ability to park aircraft or reduce flying during slow periods or when fuel prices spike.

Their aircraft utilization sees large swings between peak and non-peak flying. Per G4's most recent presentation:
2014 UTILIZATION:
Airbus - peak = 9.9 hours; off-peak = 5.3 hours
non-Airbus - peak = 7.1 hours; off-peak = 1.9 hours
http://phx.corporate-ir.net/External...NoaWxkSUQ9MjY4NzQ0fFR5cGU9MQ==&t=1

Being able to chop 4 or 5 hours off utilization (combined with basically parking MDs during non-peaks) gives them a lot of flexibility.

Quoting MVAair (Reply 5):
so theyre keeping the 75s?

For the time being. Allegiant announced in December they were writing down the value of the 757s. The write-down was calculated using the next S4C check date of each aircraft. Schedule for those checks are 1 in late 2015; 3 in late 2016; and 2 in late 2017/early 2018.

Allegiant claims they are not saying the aircraft will leave the fleet at those checks, only that they will decide the "best" action to take as those checks come up. But I think we can expect to see them depart.
"Travel is fatal to prejudice, bigotry, and narrow-mindedness." - Mark Twain
 
FlyHossD
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 9:42 pm

Last I heard, UA was looking for some used A319s/320s or 737NGs - how did UA not pull the trigger on these? Is Allegiant willing to pay more?
My statements do not represent my former employer or my current employer and are my opinions only.
 
lostsound
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 9:47 pm

It's interesting to me that all the ULCCs in the US are moving towards and all A32X fleet. I wonder how long the US will be able to support Frontier, Spirit, and Allegiant until either one goes bust or two of them merge. They will all practically have the same fleet so fleet wise it would be convenient. Their networks are not directly competitive which is probably why they are fine for now. But soon enough I'd imagine they're going to grow into each others spaces.

[Edited 2015-02-23 13:47:55]

[Edited 2015-02-23 13:48:38]
 
FWAERJ
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 10:31 pm

Quoting FlyHossD (Reply 13):
Last I heard, UA was looking for some used A319s/320s or 737NGs - how did UA not pull the trigger on these? Is Allegiant willing to pay more?

Two simple reasons:
First off, UA flies V2500-powered A32x, not CFM56 like what G4 uses.
Secondly, UA doesn't have a need for quad overwing exits on their A319s, while G4 does.

Quoting Lostsound (Reply 14):
Their networks are not directly competitive which is probably why they are fine for now. But soon enough I'd imagine they're going to grow into each others spaces.

It's already begun. F9 flies several routes out of CVG that directly compete with G4 routes.
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studedave
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RE: Allegiant Purchases 6 More A319s

Mon Feb 23, 2015 11:44 pm

I don't know what's happening right now, but back in January I rode one of G4's new A319s from Bellingham to Los Angeles. It was very clear that they were training the cabin crew, as there were about two or three extra flight attendants onboard. I personally liked it over the MD-80. Much less cabin noise- even though I was in an exit row right over the wing. Knowing the people of Bellingham like I do- I know they will NOT miss the MD-80s at all!!!




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RE: Allegiant Purchases 6 More A319s

Tue Feb 24, 2015 7:40 am

It's been known for a while the fleet strategy for the Airbus is to equip most of the smaller stations with an all, Airbus fleet. BLI was the first to go all Airbus, with FLL in the transition phase as we speak. The next stations to see all Airbus ops are OAK, by early summer and most likely LAX. I could see this batch of A319s going to PIE and PGD before going to LAS. Unless the plan drastically changes, expect all the small stations to be all Airbus, with Vegas, Mesa and Sanford being a mixed fleet for a while. ENV will likely stay MD-80, but could switch to Airbus at some point, depending on the casino contract.

Im a bit skeptical the 757s will actually be in the flee plan in 2018, as 2017 has been the long rumored withdrawal year for the fleet. That could change though, so who knows?

It's also known the 80s will be around at least another 5-8 years and from everything I have heard, expect to see international service launched with the 80s sooner, rather then later.
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YLWbased
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RE: Allegiant Purchases 6 More A319s

Tue Feb 24, 2015 3:53 pm

I've been on 5J's A319 countless times as I'm a frequent on the HKG-ILO route which is operated exclusively by the 319s. With 5J phasing out its 319 fleet, I'm wondering what are they gonna use for low demand routes such as HKG-ILO, obviously A320 is too big for the job (I have flown on the route 8 times last year, none of the sectors were full) and ATR is not meant of international opts.

YLWbased
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Devilfish
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RE: Allegiant Purchases 6 More A319s

Tue Feb 24, 2015 5:07 pm

Quoting YLWbased (Reply 18):
With 5J phasing out its 319 fleet, I'm wondering what are they gonna use for low demand routes such as HKG-ILO, obviously A320 is too big for the job (I have flown on the route 8 times last year, none of the sectors were full)

5J supposedly have ten A319s in its fleet...so the remaining four A319s (possibly leased) could take over the job.....

http://www.businessmirror.com.ph/ceb...raft-to-american-low-cost-carrier/

Quote:
"CEB has one of the most modern fleets in the world, with 54 aircraft composed of 10 Airbus A319, 31 Airbus A320, 5 Airbus A330 and 8 ATR 72-500 aircraft."


I guess they'd cut unproductive routes, unless they're projecting a sustained growth in traffic to keep the A320 as their smallest prime workhorse. Otherwise, their incoming orders would have nowhere to fly to.
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roseflyer
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RE: Allegiant Purchases 6 More A319s

Tue Feb 24, 2015 6:12 pm

Quoting Lostsound (Reply 14):
I wonder how long the US will be able to support Frontier, Spirit, and Allegiant until either one goes bust or two of them merge.

I can't see Spirit or Allegiant going bust any time soon. Last I saw, Allegiant and Spirit had the highest profit margins of any airlines in the United States. Both have profit margins over 15% which is extraordinarily high in the world of aviation. The are two of the most profitable airlines in the world.
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RE: Allegiant Purchases 6 More A319s

Tue Feb 24, 2015 10:08 pm

Quoting Devilfish (Reply 19):
5J supposedly have ten A319s in its fleet...so the remaining four A319s (possibly leased) could take over the job.....

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RE: Allegiant Purchases 6 More A319s

Tue Feb 24, 2015 11:12 pm

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FATFlyer
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RE: Allegiant Purchases 6 More A319s

Wed Feb 25, 2015 1:58 am

Quoting LAXintl (Reply 22):
Just picked up 2 A320s also.

Ex PR.

With delivery this year for these two, Allegiant is now adding 7 A319s and 5 A320s during 2015.
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PlanesNTrains
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RE: Allegiant Purchases 6 More A319s

Wed Feb 25, 2015 2:08 am

Quoting FATFlyer (Reply 12):
For the time being. Allegiant announced in December they were writing down the value of the 757s. The write-down was calculated using the next S4C check date of each aircraft. Schedule for those checks are 1 in late 2015; 3 in late 2016; and 2 in late 2017/early 2018.

Allegiant claims they are not saying the aircraft will leave the fleet at those checks, only that they will decide the "best" action to take as those checks come up. But I think we can expect to see them depart.

What an unfortunate sideshow it's been for them. I would have thought things would've worked out better for them in HI but such is life.

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YLWbased
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RE: Allegiant Purchases 6 More A319s

Wed Feb 25, 2015 8:18 am

Quoting Devilfish (Reply 19):
Otherwise, their incoming orders would have nowhere to fly to.

Honestly speaking, I think that's their problem right now - No where to growth.

5J is starting to offer n/s international services to pure holiday destinations such as Kalibo and Puerto Princesa, they've recently restarted the twice failed HKG-KLO flt with an A320, and I don't think I need to explain how poor the load really is. I think 5J really have to work hard in expanding their service to the South, they can attract pax orinigated from Greater China and East Asia who are currently using AK/D7 or Scoot/Jetstar to swich over.

They also need to improve their ultra poor ontime performance if they were to attract any business travelers.

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flyinryan99
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RE: Allegiant Purchases 6 More A319s

Wed Feb 25, 2015 2:27 pm

Quoting YLWbased (Reply 25):
Honestly speaking, I think that's their problem right now - No where to growth.



They also need to improve their ultra poor ontime performance if they were to attract any business travelers.

Tell that to them that just announce 22 more routes yesterday. They are starting to find success in mid to middle-large sized markets lately. PIT/CVG aren't the smaller markets they have traditionally gone into. With limited day of the week service, it's a low risk, high reward way of flying. They have learned that customers will fly them the days they fly with the fares and deals they offer. They have picked some fights and backed off in some markets, but others, they have stayed in and fought and held their own. It really looks like they are trying out a bunch of different city pairs now to see what may or may not work.

I honestly think they will be moving into International destination flying soon as that market is too large to ignore. The problem is can they make a good ROI on the flying. The demand is there to places like CUN and PUJ, etc. but can they make a good ROI. I think them going into middle-large markets, they will be able to run Int'l flights and make the money at it where they may not have been able to at smaller-mid markets. It also helps that places like CVG and PIT have FIS facilities that are way under utilized too.

Oh...and they don't care about the business traveler because they don't need to. Stick to what you are good at.
 
doug_or
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RE: Allegiant Purchases 6 More A319s

Wed Feb 25, 2015 3:04 pm

Quoting flyinryan99 (Reply 26):

Context. The quoted text you replied to was talking about Cebu Pacific, not Allegiant.
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YLWbased
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RE: Allegiant Purchases 6 More A319s

Wed Feb 25, 2015 4:25 pm

Quoting doug_Or (Reply 27):
Context. The quoted text you replied to was talking about Cebu Pacific, not Allegiant.

Thank you for pointing out!
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studedave
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RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 2:07 am

Quoting cbphoto (Reply 17):
It's been known for a while the fleet strategy for the Airbus is to equip most of the smaller stations with an all, Airbus fleet. BLI was the first to go all Airbus

In Ferndale we see plenty of birds heading into BLI as they make their turn and line up on final.
And since I have not been home since that flight- that is news to me- thanks!!!

But if BLI is all Airbus- why do I still see MDs on FlightAware?




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OMP777X
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RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 2:39 am

Am I the only one here reading all of this information about their fleet changes and wondering how it might impact the TV show The Game Plane?

http://www.thegameplane.com/

  

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FATFlyer
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RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 3:47 am

Quoting OMP777X (Reply 30):
Am I the only one here reading all of this information about their fleet changes and wondering how it might impact the TV show The Game Plane?

No worries about The Game Plane yet, as of last month:

Quote:
“The Game Plane,” hosted by Mark Walberg of PBS’ “Antiques Roadshow,” recently signed with Allegiant to begin filming a second season of episodes that include trivia contests and onboard games of skills, with cash prizes and vacations awarded between takeoffs and landings.

http://www.latimes.com/business/la-f...-allegiant-air-20150116-story.html
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bomber996
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RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 4:20 am

Quoting studedave (Reply 29):

But if BLI is all Airbus- why do I still see MDs on FlightAware?

Flightaware has some well known glitches. It shows AAY485 from GFK-LAS today listed as an MD80 when I know for certain I saw B752 on the scopes at Denver Center today.

Peace   
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RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 5:12 am

G4 fascinates me as it has such a unique business model. OK, DL also flies a subfleet 'high RASM only' (only fly when customers are willing to pay more), but G4 takes it to that next level.

Quoting FATFlyer (Reply 23):
Allegiant is now adding 7 A319s and 5 A320s during 2015.

   For an airline with such cost discipline, that is very quick growth.

Quoting FATFlyer (Reply 12):
For the time being. Allegiant announced in December they were writing down the value of the 757s. The write-down was calculated using the next S4C check date of each aircraft. Schedule for those checks are 1 in late 2015; 3 in late 2016; and 2 in late 2017/early 2018.

Allegiant claims they are not saying the aircraft will leave the fleet at those checks, only that they will decide the "best" action to take as those checks come up. But I think we can expect to see them depart.

Your insight into G4 is appreciated. The fate of these 757s is likely to be departure from G4's fleet. I thought they would have done better. Cest la vie.

Quoting Roseflyer (Reply 20):
Last I saw, Allegiant and Spirit had the highest profit margins of any airlines in the United States. Both have profit margins over 15% which is extraordinarily high in the world of aviation. The are two of the most profitable airlines in the world.

Someone needs to tell them they are airlines.  

Finding a niche and doing it right is quite a skill. I'm shocked how many of my younger cousins love to fly G4. When you understand the ULCCs, it just works.

Quoting flyinryan99 (Reply 26):
Oh...and they don't care about the business traveler because they don't need to. Stick to what you are good at.

G4 (and NK) have identified their niche. Now G4 cares about the business traveler, they just will not cater to them. That is fine. G4 has their market and it would be nearly impossible to kick them out of it.

Lightsaber
Winter is coming.
 
OMP777X
Posts: 455
Joined: Fri Jan 23, 2015 8:10 am

RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 7:46 am

Quoting FATFlyer (Reply 31):
No worries about The Game Plane yet, as of last month:

  

I guess it doesn't matter which aircraft they use for that show as long as they block off enough seats for the crew!

Best,

OMP777X
"Happy Flighting!"
 
flyinryan99
Posts: 1504
Joined: Sat Feb 17, 2001 6:54 am

RE: Allegiant Purchases 6 More A319s

Thu Feb 26, 2015 2:23 pm

Quoting YLWbased (Reply 28):

Oops my bad. I'm sorry

[Edited 2015-02-26 06:24:12]

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