Skywriting

I would think the market you fly in dictates the numbers on the airplane and they are in the same type of market as TransMeridan.

sgrd0q

They are probably paying ten times less in lease payments per month than if they were to lease new 737s. That is very significant. They are paying more for fuel. That is not nearly as significant.

However they must pay a lot more in maintenance. That is really a significant cost that has to be balanced with the lower lease payments to figure out if it is cost effective.

I suspect their model involves little plane utilization, which in turn makes the lower lease payments work to their advantage despite the higher maintenance cost and fuel cost.

In any case their 160 pilots must be lynched for accepting regional wages and below regional work conditions to fly mainline aircraft.

B757200ER

TransMeridian has been out of business since last fall. They shut down and liquidated because they bid on contracts at lower rates than it cost them to fly them, hence the phrase "Flying Below Cost". They didn't make enough revenue to pay for their expenses, and suddenly they were out of money. They in no way carved a successful niche as Allegiant has. That's why Allegiant is still in business.

mike734

Well if they are adding numerous aircraft it is only a matter of time before they do start to compete. Of course, there are bigger more pressing issues right now I know.

B757200ER

I think they have 20 MD-80s now, mostly 1st generation round-dial jets. If they get more, and expand slowly, I still don't see them flying in AS markets. They'll go to secondary airports, and try to feed Las Vegas, not fly LAX/SFO/SEA/PDX-Mexico or Alaska.

How many MD-80s does AS have left?

deceptibum

Actually it's 21 jets: 19 -83s and 2 -87s. All but 2 of our planes have the full EFIS and digital engine parameter representation with the electronic overhead annunciator panel. I believe we are getting another 3 by the end of this year. One more -87 and two -83s. But I'm not sure yet as to their cockpit layout.

crewdawg52

The sad thing is.....they will probably get 1000's of resumes for those 70-80 positions they say will be hired next year. Terrible pay compared to the LLC's and Legacies, but better than regionals

pilotswife

Might want to get your facts right first...



http://www.easybourse.com/Website/dy...NewsRubrique=2

Allegiant Travel Pilots Form Association, Ask For Raises
Wednesday August 23rd, 2006 / 17h00


WASHINGTON -(Dow Jones)- Allegiant Travel Co., which is planning to go public, disclosed Wednesday that its pilots have formed an in-house association and recently requested pay raises from the company.

The Las Vegas-based low-cost airline, in a document updating the risk factors for investing in the company, said "costs will be affected by the results of discussions with our pilot group and any other employee groups in the future."

In an amended registration for its initial public offering, filed with the Securities and Exchange Commission, the company said it intends to negotiate a mutually satisfactory arrangement with the pilots association.

In its original IPO registration in May, the company said that, unlike many airlines, it has a non-union work force. The company said that if its employees unionize, the move could result in demands that may increase the company's operating expenses and adversely affect profitability.
The company cited its highly productive work force as one of its competitive strengths and attributed its productivity in part to "fewer unproductive labor work rules."

Allegiant said it isn't aware of any campaigns among its employee work groups to establish union representation, but it said the employees could unionize at any time.

Each separate unionized work group would require a collective bargaining agreement, and work slowdowns and stoppages could result if favorable agreements aren't reached, the filing said.

-By Yogita Patel, Dow Jones Newswires; 202-862-1343; [email protected]

astrojet

hubs in las vegas, and or orlando are graveyards for airlines=national,air florida, delta express, song,primaris,all star. etc. reason= leasiure markets, people only fly there if the fares are cheap, cheap fares dont cover expenses. the casinos know ther will always be a new start-up to take over.

FlyJSH

ryane,

based on info in Boeing's website, 737s burn an roughly 900 gal/hour. Assuming the MD burns one third more fuel than the 737, then the MD burns roughly 1200 gal/hour.

At 7 flight hours/day and 350 days flown, each plane would fly 2450 hours/yr. Transient retail price for Jet A at SFB is $4.40. My guess is Allegiant is paying at least a dollar less. Sooo....

2450 hours/yr X (1200-900)gal/hr difference X $3.40/gal = $2.5 million/yr

That means 20 years to equal the extra $50 million to by a new airplane.

That is a quick and dirty estimate