Big Perm

Anyone see a recruiter at the job fair the other day? Any intel?

jegermeister

Our management has been open about growth in the public investor relations. That is that growth will be modest in comparison to previous growth while we transition to an all AB fleet.

That's not to say growth is done for the next 2.5 years.

We currently have 84 airframes and roughly 840 pilots. We're projected to have 110 airframes in 2020. If the current staffing model remains the same, that would put us at 1,100 pilots. If you add modest attrition, you'll see roughly another 440 pilots hired over the next 2.5 years (about 14 per month). That's about a 60% increase in total pilots. Not bad for a transition period.

(Assumptions - Staffing model remains the same, we actually get 110 airplanes, and 6 pilots a month attrition)

I don't see us getting a significant pay bump on the next contract. I think the last earnings report made it clear that management attributes our decline in profit to the new contract. On the upside, I believe we'll have a clear path to the left seat, continued growth (domestic and international), and the only company that offers day trips for a schedule.

Big Perm

Good info, ty.
I believe Allegiant was running on a 30% profit margin (better than any other airline)....any idea what it is under the new contract?
Any speculation with merger rumors (hope not)?

akemps

no merger rumors to speak of, just a lot of "what if" talk. As far as we know, we're staying "Allegiant" for a longggg time to come!

KC135

Q1 finished at 19% operating margin vs 34% Q1 last year. Fuel cost actually played a bigger role in that drop than the contract. No merger rumors.

Beretta01

Might it be that acquiring new airplanes had anything to do with that?

JustWatching

I didn't listen to the call.... could you post some numbers? I didn't think fuel went up much over the quarter.

greeka

I just finished recurrent, We were told the attrition rate is holding at 4 to 8% a month.

tom11011

That's mostly off the bottom 200. From 1 to 600 is about 0-3 per month since the contract was signed which would be about a half percent per month. But I do believe the rate is beginning to increase as retirements at majors is starting to ramp up even more.

akemps

I don't think you mean to have that "%" in there right? That would be 32 to 64 pilots per month! :P