Allegiant Bottom Line

Right now the predictions are that Allegiant may bring in $125,000 in net revenues for ORH. Considering that the operating deficit is approximately $2,000,ooo we have a way to go. At the same time, there is more to the bottom line then dollars and cents.

First, there is the goodwill that can be created between the flying public assuming:

1. Allegiant is reliable
2. ORH experience is excellent (signage, free wifi, free parking, etc)

Goodwill is somthing that is very difficult to attach a dollar value. In addition if Allegiant has high loads, it will only lead to more airlines which will further enhance revenues and cut the operating deficit. Lastly let us not forget the $1,000,000 FAA grant that may have been lost if we did not reach 10,000 passengers.

In summary, you need to look at the entire package, which includes $125,000 in hard dollars to the bottom line, goodwill with the flying public, entrance of other airlines and the maintenance of $1,000,000 grant from the FAA, the Allegiant package is a good one for ORH.