Worcesteria has some comments on Allegiant.
http://www.worcestermag.com/archives/2006/08-31-06/worcesteria.html
Please note the on-line version says 10 tickets at 90 per flight represents $9,000. Obviously it is a typo since it would be $900 and the round-trip is reported correctly at $1,800. It is, however, much more then just the lost ticket revenue. Allegiant makes their profit on the vacation packages, they make no money on the flights. The fact we had to use the smaller plane (130 seater most of the time) put us behind the 8-ball since we had fewer numbers to begin who could potentially book vacation packages then cities that are served by Allegiant's larger planes.
As far as Allegiant pulling out of the cities, what airline has not pulled out of cities since 2000?? Why do airlines stop a route?? They are losing too much money. In other words if Allegiant was making money on the ORH-Sanford route, they would still be flying here and other airlines would take notice. The fact Allegiant has terminated service to ORH sends a very clear message to other commercial airlines that they could not make money here. It will make it extremely difficult to get another commercial airline to come to ORH.
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6 months ago
4 comments:
Never good to blast a person or company like has been done in your area. Allegiant pulled planned service from Baton Rouge to Vegas before it started in 2004. There was some grumbling but nothing like this from its area leaders.
Guess what? Baton Rouge is now hinting that Allegiant is considering coming back, possibly this time with flights to Orlando. So don't let your area make enemies.
Also Anonymous is correct about it being a small industry. Don't forget Maurice Gallagher and some of the investors were founders and execs at AirTran in its original form and also at other airlines. They know a lot of people in the industry.
As far as the magazine's comments, all I can say is either poor research or spinning the facts by not telling the full stories:
At Waco, there was a real problem with the fuel vendor. The Waco newspaper reported that the vendor at the last minute wanted to increase the originally negotiated handling fee of 7 cents/gallon to 35 cents/gallon, just to fuel the planes. What should they have done, gone along with that?
Madison? Northwest started flights from Madison to Vegas and Orlando that competed directly with Allegiant. Allegiant chose not to lose money by fighting a fare war.
They also neglect to point out that Allegiant's original owner took it into bankruptcy in 2000, that is why the cuts back then. Fresno to Vegas was the only service to remain. Gallagher bought in and grew the company to where it is today.
Fuel costs did soar in 2000. They basically doubled from 1999 to 2000, check the numbers (even the ones for gasoline in those years). That $1.38 might seem like low prices today but it was a hard year in the industry. Any industry would feel it when a cost increases that rapidly.
Portsmouth mgmt should be complimented for working to keep Allegiant even "intermittent" service.
Let us not forget the magical 10,000 passengers and $1,000,000 from the FAA. The "intermittent" flights from Allegiant in Portsmouth got to be huge for them.
Do we get to keep the 1mil for reaching 10,000 passenger for ORH or do we forfeit the $$ because we needed to maintain a commercial carrier?
WT
I believe we retain the 1,000,000 for reachiing 10,000 for 2006.
Next year we are in trouble unless we get someone to take Allegiant place, which is going to be very very difficult.
Bill
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