Originally Posted by dawgdriver

Glad they got a smokin' deal financing their new planes, the point is that AAY is no less leveraged--or vulnerable, than others in an economic downturn or spike in oil. They own/finance/lease aircraft, pay for maintenance, fuel and payroll like any other airline. Like others, their costs are rising but Allegiant has a great business model.

The link provided shows WN owning 80% of their fleet. Like AAY, how much WN or UAL pays down vs. borrow or lease on whatever aircraft changes daily and is somewhat irrelevant given today's cheap money. Sometimes it's wiser to borrow. Whatever the case, a strong debt/asset ratio ensures ownership factors will not determine whether an airline survives a downturn. Solid business plans/practices, strong balance sheets, cost structures and risk mitigation are what determine an airline's fate, not whether they own planes or not. There is a race to the bottom and the big guys aren't sitting on the sidelines.

If, as you say, history repeats itself, AAY might be in trouble. Looking at the track record of small airlines, most have been absorbed or driven under by the big ones. I hope that doesn't happen. Again, best of luck to you guys.