Whatever happened to DJ Air Group? We really blew it with Allegiant. $73 million means new jets, but after the way we treated them after they left ORH, we have no chance of luring them back.
NEW YORK — Allegiant Travel Co., a Las Vegas-based airline operator aimed at leisure travelers in small cities, plans to sell 5 million shares in an initial public offering next week, hoping to raise up to $85 million.
The company expects an IPO price range of between $15 and $17 per share, according to a filing with the Securities and Exchange Commission. Allegiant Travel plans to use the expected $73 million in net proceeds to retire $900,000 in secured debt owed to Chief Executive Maurice J. Gallagher Jr., buy additional aircraft and pay for general corporate purposes.
Allegiant Travel said it focuses on areas where competitors, including network and low-cost airlines, are unlikely to start service. It flies from cities including Duluth, Minn., and Allentown, Pa. Among Allegiant Travel's biggest shareholders are CEO Gallagher, ComVest Allegiant Holdings LLC and Viva Air Ltd.
The offering's underwriters include Merrill Lynch, Bear Stearns and Raymond James. The company plans for its shares to trade on the Nasdaq under the ticker symbol "ALGT."
14 comments:
Allegiant just landed a deal that got them all but two of Alaska Airlines' MD-83's. Now they plan to expand their fleet even more. Allegiant won't stop expanding! I can't beleive we blew it with them.
Dave from Worcester
p.s. I don't know if this has been brought up already, but Bradley just landed Frontier :(
Dave:
I did not know that. In fact I was not aware of Frontier.
Bill
yeah, and they got Northwest nonstop to Amsterdam on a 757. It will be interesting to see how that route works out. Bradley just keeps getting busier.
Dave from Worcester
Amsterdam? Ah, that's it, I'm going!
JetBlue FYI from the Boston Globe (12/05/06)...
BUSINESS IN BRIEF
Airline to delay taking delivery of 32 small jets
December 5, 2006
THE REGION
JetBlue Airways Corp. said it is delaying the delivery of 32 100-seat Embraer 190 jets it has been scheduled to receive in the next four years as it aims to restrict its 2007 capacity growth -- measured in available seats -- to 14-17 percent, about half its recent growth rate. JetBlue will add 10, instead of 18, of the jets in each of the next four years and says it will take the other 22 in 2011-2014. But a spokeswoman said Boston, as a "stronghold city" for the discount carrier, will remain a focus for service expansion in coming months.
Harry Tembenis
Worcester, MA
Off topic here, but does anyone find it unusual that re: the RFP for an aircraft facilty.
1. It must be submitted to MP in Boston and NOT to the city of Worc.?
2. The City/authority is soliciting the bids...(s/b City only?)
3. Copies of RFP ar available only from MP.
4. Authorization to award the bid is subject to not only City approval but also MP's approval?
How many chiefs does this tribe have ?
Jahn:
I noticed that too. You would think that it would be a City of Worcester deal, and MassPort would not even be involved.
Either way I do not see how many potential investors will look favorably on the stiplated terms.
Once again, the section on the RFP ("Moving Ahead") said we sent it to 50 potential developers. Does anyone know who they could be? Is anyone interested?
Dave from Worcester
Dave:
I have been involved in alot of RFP's for insurance and real estate. It truly makes no difference how many were sent out.
Seriously alot of companies accumulate a mailing list and when an RFP is done, they automatically mail out an RFP.
What matters is how many people will put up $10,000 with a proposal.
Dave, I asked my contact at the airport, a tenant, that same question: who could the city imagine would be in the financial position right now to assume a HUGE risk and try out this market? It's not like the "management" can't imagine who the contenders could be. I have no idea who they are, but to put forward an outlandish RFP ($10K up front, approval of the city AND Massport, release of % of profits)--is all this standard for the industry? If not, they're wasting their time even releasing it. Am I wrong?
I have to assume MP has similar facilty(s) at Logan that are probably even larger than what is sought for ORH.
So.....If I am MP do I try to make this RFP an impossible proposal for any potential bidder so that ORH doesnt start soliciting general/corporate avaition busineess away from Logan? Or do I set up the RFP so that I, MP, have to approve it?
Let's turn this place in a non -profit corporation and then you'll see all the gov't funds flow our way. Afterall it is hardly an real City Enterprise Account. ........Hanover Theatre.....Hanover Airport ( Town Of Hanover doesnt have an airport right?)...or maybe we can still keep it a profit makign enterprise and get some of Glodis' Guests to do custodail work for free..........which work now probably costs us $25-30 per hour.
Maybe MassPort's Master Plan is to runn ORH into the ground so that we sell the airport for pennies on the dollar?
MMMMMMMM interesting thought , Bill.
Another quickie perusal of thsi RFP raises a couple more questions.
The RFP refereences "Massports Guide to Tenant Constr". Does guide require the constr project to come under the umbrella of the so called prevailing wage laws?...A.k.a. Union Job. If it does, then this is another possible negative in the financial picture.
I find it interestign theat Mr Waldron (Airport Dirctor who is supposdly on MP's payroll) is signing the issuance of the RFP and under his name Is Massport Authority, Director. Mr obrien also signs the RFP as City manager.
Who does Mr Waldron report to and where are his allegiances?
Prevailing wage laws--WOW... That is Union rates..
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