AWST March 15, 2010 (page 18,14)
SPIRIT IS WILLING
Low cost carrier Spirit Airlines last week secured US Transportation Dept authorization to offer service between FLL and Barranquilla, Columbia. Spirit expects to launch service this summer.*
ALLEGIANT ORDERS 757s
The parent company of US low cost carrier Allegiant Air has signed an agreement with an unidentified European operator to acquire six used 757-200 aircraft, after Allegiant's leadership decided the financial reward from offering service to Hawaii offsets the complexity of adding a second aircraft type to it's MD80 fleet. Allegiant Travel President and CFO says limiting the 757s to Hawaii service would also simplify mixed fleet operations.*
Allegiant executives view Hawaii as extremely fertile ground for their airlines business model: connecting small communities to major leisure destinations with low-frequency service at low prices, generating their profit primarily from the sale of related travel insurance, hotel bookings, rental cars, attraction and show tickets, and preflight and inflight fees and services. To dare, the LAS based carrier has provided it'd service using only inexpensive aquired MD80 aircraft that it bought with cash. These MD80s do not have the range to reach Hawaii, and thus the 757 deal is a significant step for the carrier. Allegiant expects to spend $75-90 million through 2012 aquiring and preparing the 757 fleet for service, with aircraft deliveries planned from this year through the fourth quarter of 2011. Allegiant says it has the ability to aquire and prepare the 757s in cash, but will finance some portion of the purchase.*
Allegiant now operates 46 MD80s and plans to have as many as 60 by the end of 2011, under aircraft acquisition deals it signed with SAS Group.