Hubbry Logo
search
logo
2075355

Allegiant Air

logo
Community Hub0 Subscribers
Write something...
Be the first to start a discussion here.
Be the first to start a discussion here.
See all
Allegiant Air

Allegiant Air is an American low-cost airline headquartered in Las Vegas, Nevada. The airline focuses on serving leisure traffic from small and medium-sized cities which it considers to be underserved, using an ultra low-cost business model with minimal inclusions in fares and a greater number of add-on fees.

Allegiant was founded in 1997 and is wholly owned by Allegiant Travel Company, a publicly traded company with 5,600 employees and over US$2.6 billion market capitalization in 2016. The airline is the fourteenth largest in North America.

Allegiant Air was founded in January 1997 by Mitch Allee (owner, CEO), Jim Patterson (president), and Capt. Dave Beadle (chief pilot) under the name WestJet Express. After losing a trademark dispute with Westjet Air Center of Rapid City, South Dakota, and recognizing the name's similarity to WestJet Airlines of Calgary, Alberta, the airline adopted the name Allegiant Air and received FAA and US DOT certification for scheduled and charter domestic operations on June 19, 1998. The airline also has authority for charter service to Canada and Mexico.

Scheduled service began on October 15, 1998, between Las Vegas and the airline's original hub in Fresno, California at the Fresno Yosemite International Airport with Douglas DC-9-21 and McDonnell Douglas DC-9-51 jetliners. During the second half of 1999, the airline was operating nonstop flights between Fresno and Las Vegas, Burbank and Lake Tahoe, and Las Vegas and Lake Tahoe, as well as flying one-stop direct service between Fresno and Lake Tahoe via Las Vegas.

Allegiant Air opened a small hub in Long Beach, California (LGB), and in 2000, it was operating nonstop flights to Fresno and Las Vegas in addition to Fresno-Las Vegas nonstop service. Later in 2000, Allegiant continued to expand and was operating the only nonstop jet service between Lake Tahoe Airport and Long Beach Airport in addition to operating new flights into Portland, Oregon and Reno with Portland-Reno and Reno-Fresno nonstops and direct one-stop service between Portland and Fresno via Reno.

Citing higher fuel costs as a major factor, Allegiant filed for Chapter 11 bankruptcy protection in 2000. The bankruptcy allowed Maurice J. Gallagher Jr., one of the airline's major creditors, to gain control of the business. A veteran leader of low-cost airlines, Gallagher had worked with WestAir and was one of the founders of ValuJet Airlines. In June 2001, Gallagher restructured Allegiant to a low-cost model, focusing on smaller markets that larger airlines did not serve with mainline aircraft. Allegiant's headquarters and operations were also moved to Las Vegas.

In the fall of 2001, Allegiant exited bankruptcy and the case was officially closed in early 2002. In March 2002, Allegiant entered into a long-term contract with Harrah's to provide charter services to its casinos in Laughlin and Reno, Nevada. At the same time, the airline acquired its first McDonnell Douglas MD-80 jetliner. From 2002 through 2004, the airline developed its scheduled-service business model. By 2004, Allegiant was flying from 13 small cities to Las Vegas and offering bundled air and hotel packages.

In May 2005, the airline's holding company, Allegiant Travel, completed a private equity placement worth $39.5 million. In November 2006, Allegiant filed a registration statement with the Securities and Exchange Commission in anticipation of a planned initial public offering of its common stock. It raised $94.5 million in equity capital with 5.75 million shares worth $18 each. It began trading on the NASDAQ Stock Market under the ticker symbol "ALGT" in December 2006.

See all
User Avatar
No comments yet.