Originally Posted by
Skyhawk Dale
I see 2 scenarios happening with PIT.
1. PIT is safe until a new rate is negotiated for the new terminal. As the Allegheny county airport authority has shown in years past with US Air, the rate is likely to increase IMO. The reduction of gate space coupled with the amount of money they are paying for the project (even with federal grants) leads me to believe that rates will have to increase. They’re adjusting supply to create the demand, which is dumb given that a majority of carriers are in there for that reason to begin with. Add todays inflation with a “due to covid” excuse for just about everything, and you’ve got a perfect recipe for it. Even if it is a minimal rate increase, I think allegiant will likely leave just so that someone doesn’t call their bluff as well as to keep up with their notion of “passing savings on to their customers.” (As we recently saw in CLE.) They will always follow the money and find a cheaper way to do business(*buys 50 max jets and goes back to multi aircraft fleet) That’s the allegiant way.
2. PIT is safe as long as apple vacations continues to supply current charter flying. It is a decent portion of the flying there, not to mention gates are paid for by apple. This supposed 3rd plane was planned to enter service last fall to support an increase in the Apple flying. When that was lost they immediately pulled it. The lord Maury giveth and taketh. Bottom line is that the base relies on that flying. If the apple vacation charters go, it will likely lead to the eventual downfall/downsizing, if anything, of PIT.
But then again, they just opened a base in Flint , Michigan. So what the hell do I know…..
1- knocking down a couple gates with probably save millions in ongoing annual MX. Add in less train MX, because that’s going bye bye. And I think the Feds are bankrolling hundreds of millions in the operation, plus the fact that less gates = less room for other airlines to come in and compete, I feel PIT is fine.
Also, don’t forget PIT has tons of departures, CLE barely had 2x a week to 3 FL bases + MYR. PIT does AUS, BNA, all of Florida, MYR CHA, plus apple.
Apple is not that big of a deal. Base would be fine without the 2x a week charters that are low margin. Not to factor in that Viva partnership can work well with Apple (sell 90+ seats to Apple each flight, allow Allegiant to sell the rest for higher margins… they said they would do just this in the DOT filing).