After the recent 757s, Allegiant Air’s ex-easyJet A319s “open many new route opportunities”

Thumbs up for Scranton-Vegas? With a range of more than twice its 20 year old MD-80s Allegiant says acquiring the 19 ex-easyJet and Cebu Pacific A319s “opens many new route opportunities.”

Thumbs up for Scranton-Vegas? With a range of more than twice its 20-year-old MD-80s, Allegiant says acquiring the 19 ex-easyJet and Cebu Pacific A319s “opens many new route opportunities.” (In case you were wondering, good ‘old’ Allegiant remains most unlike easyJet in all other ways.)

Allegiant Air’s recent announcement that it would start acquiring 156-seat A319s from Cebu Pacific and easyJet to facilitate growth in the coming years came as something of a surprise as the airline traditionally likes using 20-year-old MD-80s adding, just recently, also-old 757s (for its new Hawaii routes). The airline estimates that while ownership costs for the Airbus will be higher, maintenance and especially fuel costs will be significantly lower, resulting in an estimated cost per passenger of $96 compared with $106 for an MD-80, based on a 90% seat load factor, current fuel prices and aircraft utilization of 8.9 hours per day. With a range of more than twice that of an MD-80 the A319 “opens many new route opportunities”.

Allegiant route destination map for America

A footprint that could get much bigger with the addition of 19 156-seat A319s between 2013 and 2015? Out of Allegiant's 186 routes just 15 face head-to-head competition. The newest 'dots' on the map are Scranton (Pennsylvania), Honolulu (Hawaii), Maui (Hawaii) and Ogden (Utah). (Source: Allegiant Air management presentation, 6 August 2012)

Demand peaks in March, July and December

Allegiant’s focus on the leisure market, taking people from smaller, underserved communities to destinations they want to go to, when they want to go there, results in the airline having a distinctive seasonality profile with demand peaks in March, July and December.

Allegiant Air Monthly scheduled passengers 2009-2012

Source: Allegiant

After reporting scheduled passenger growth of just 3% in 2011 to 5.78 million, in the first seven months of this year passenger growth has grown strongly once more by 15%. With extra seats being fitted on half of the airline’s MD-80s and the launch of services to Hawaii (from 29 June) using 223-seat 757s the airline is expecting ASK (Available Seat Kilometre) growth to rise to around 25% in the fourth quarter of 2012, with ASK growth in 2013 currently forecast to be in the range of 20-25%.

Only scheduled carrier at five US airports.

Out of the 80 airports currently on Allegiant’s route network, it is the only scheduled carrier at five airports according to OAG data for August; Fort Collins/Loveland (Colorado), Chicago-Gary (Indiana), Punta Gorda (Florida), Stockton (California), and Youngstown (Ohio).


Comments

  1. dwight says:

    Allegiant is all profit as it is contracted below wing and its buy-on-board menu ranging from Starbucks to Snickers creates major revenue for the carrier. keep in mind the LAS – HNL is a old Finnair and its a “dog” of a ride.

  2. Thomas says:

    One thing they won’t change is the two overwing exits on either side. Why does Easy’s A319s have these? Simples, so they can cram 156 seats into their A319s. More than any other airline, and the maximum permitted by law.

  3. NBH says:

    I fly them from the Bay Area (OAK) to Bellingham (border of Canada) for 1/5 the fare Alaska, Air Canada, United, etc., charge. 150-160 seats? Who cares for 1-3 hours?

  4. Parker West says:

    Their airport selection is very odd at best, coupled with the inability to connect, gives you the impression that while they have an amazing ability to profit on mostly routes that no one has any interest in; they might be capable of maximizing that profit even more. The just added Ogden, Utah a city long in deline, rather than perhaps Provo, Utah located in a county of 600,000, the states second largest and the silicon valley of the region. Provo has daily flights to Denver which would not have any effect on any Allegiant operations, while Ogden has no service other than Allegiant, which not only forces Allegiant to introduce its flights but to also sell the airport to people who would never have considered Ogden. Provo has long sought flights to Phoenix and Las Vegas as well as Southern Calif. Given two large universities BYU and Utah Valley Univ. totaling 60,000+ students and a missionary training facility with 1000’s of young men and women coming to and leaving for 100’s of places all over the globe, the potential for a very profitable operation would be high, and I’m certain the city offers guaranteed ticket sales.

  5. Darryl Wilson says:

    According to news reports in December, the deal with Cebu Pacific fell through leaving Cebu Pacific with 10 surplus aircraft and Allegiant with 10 less aircraft than anticipated. So how will this affect the plans of both carriers?

    http://www.flightglobal.com/news/articles/allegiant-cancels-a319-deal-with-cebu-pacific-380574/

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