LAS VEGAS)-- Allegiant Travel Company (ALGT: NASDAQ) announced today its wholly-owned subsidiary, Allegiant Air, LLC, has agreed to purchase six MD-80 aircraft and three spare engines currently on lease to FlyNordic, a wholly-owned subsidiary of Norwegian Air Shuttle. The seller is a subsidiary of Finnair, the original operator of the aircraft.
“We are pleased to announce the purchase of additional high-quality MD-80 aircraft,” Maurice J. Gallagher, Jr., CEO and Chairman, said. “Our strong balance sheet and industry-leading profit margins enable us to grow and pursue many opportunities which we believe can enhance the overall profitability of our business. Our strong financial condition permits us to purchase aircraft for cash.”
Gallagher continued, “Our financial strength is particularly notable in light of recent closures of several other airlines. While Allegiant is not immune to high fuel prices and a softer economy, our business model emphasizing low fixed costs and the generation of ancillary revenues has proven robust during these more challenging times.”
As of Dec. 31, 2007, Allegiant is one of only two U.S. airlines that have more cash than debt. Additionally, Allegiant’s profitability for 2007 led all publicly traded U.S. legacy and low-cost carriers, as measured by operating and pre-tax margin. 2007 was Allegiant’s fifth consecutive profitable year.
Four of the newly purchased aircraft are expected to enter revenue service for Allegiant in the first and second quarter of 2009 and the remaining two aircraft are expected to enter revenue service in the first quarter of 2010. Allegiant expects to receive approximately $5.5 million in lease revenue from the six aircraft, but expects to incur maintenance obligations of a similar dollar amount prior to the end of the leases. A portion of these maintenance obligations may be funded by supplemental rent received under the lease.
Allegiant’s current fleet consists of 36 MD-80 aircraft in service and is expected to grow to 37 by the end of the month.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
9 comments:
if this is all true...ORH is done..we had our our last at bat and it is now time for some real professionals to deal with the issue and get it resolved
Frontier is on the ropes, too...
Frontier Airlines files for bankruptcy, plans to keep flying
DENVER (AP) — Frontier Airlines Holdings Inc. has filed for Chapter 11 bankruptcy protection, but unlike other airlines filing for bankruptcy in recent weeks, it plans to keep running while it reorganizes.
The low-fare carrier said its filing Friday came after an unexpected attempt by its principal credit card processor to start withholding significant proceeds from the sale of Frontier tickets, which threatened to hurt Frontier's liquidity.
The Chapter 11 filing in U.S. Bankruptcy Court in New York prevents the credit card processor from increasing its "holdback," Frontier CEO Sean Menke said.
"By filing for Chapter 11, we will now have the time and legal protection necessary to obtain additional financing and enhance our liquidity. Fortunately, we believe that we currently have adequate cash on hand to meet our operating needs while we take steps to further strengthen our company," Menke said in a statement.
Frontier, whose major hub is in Denver, has been affected as other airlines have by rising fuel costs and the credit crisis in financial markets.
ATA Airlines, Skybus and Aloha Airgroup all have filed for bankruptcy recently, but Menke said Frontier's reasons for doing so were different.
"Unfortunately, our principal credit card processor very recently and unexpectedly informed us that, beginning on April 11, it intended to start withholding significant proceeds received from the sale of Frontier tickets," he said. "This change in established practices would have represented a material change to our cash forecasts and business plan. Unchecked, it would have put severe restraints on Frontier's liquidity and would have made it impossible for us to continue normal operations."
He said Frontier was prepared to litigate, if necessary.
The creditor listed in bankruptcy court documents as having the largest general unsecured claim against Frontier by far was Wells Fargo, with $93.5 million. Frontier said it had fewer than 50 creditors.
At the end of last year, Frontier said, it had assets of $98.3 million and debts of $92.2 million.
A Frontier spokesman had said earlier this week the airline had "no concerns about bankruptcy" but added that it was working on strengthening its cash position.
Last month, Frontier said it had agreed to sell four planes as it dealt with rising fuel costs.
Harry Tembenis
Worcester, MA
Harry:
SouthWest going into Denver hurt them big time.
Paul, you are right!!! Think about it, we got lucky and actually had Allegiant here but blew it.
Downgrade to General Aviation and put a bif "FOR SALE" sign on the entire airport.
my feeling is we have been lucky many times...Allegient, Young Park..Mayo Group...folks like myself who have decided to live in the urban core and then the encounter of few city services in the urban core....continued emigration into the city of folks with no jobs,education or desire to have either (and our pols blind eye to this), the non-stop proliferation of low income housing, sober houses, dry houses,blah,blah,blah sprouting up around them and they move...or slow down the investment.
Again ad nauseum like Jahn..until our Pols put a full court press on this urban core we are going no where..investors are looking at the urban core NOT Salisbury Street...if the urban core can not support business it aint comin' baby!!!
Living on the West Side is a dream come tru for many in this city...for the rest of us including investors we could care less...this carnival is an example..another embarrassment to the inner city....who the hell is gonna wanna come to the Hanover, Canal District with this continued crap from our local Hispanic/Latino - American population...I always love the "we have to police ourselves after an incident..how about doing it all the time..like all the crap out of the Latino/Hispanic-American business on Chandler..this is loser stuff that is condoned by our population in the urban core..
Winners do not put up with this crap..losers do..when are our leaders gonna stand up and say enough is enough (good for Chief Gemme standing up)..not one word from our Hispanic/Latino-American leaders or other leaders..
I'd close that godamn carnival down and tell Juan Gomez that until folks learn to live like human beings there will be "no soup"...and that is that!!! Don't like it then get the hell out.
I also say kudos to Chief Gemme for closing down the carnival...
Didnt he let it open this weekend with conditions
just thinking--
an "immigrant" is someone who has "emigrated" and that is a legal concept with certain processes. so, if you are not here legally and have not gone through the processes, then you are not an "immigrant" but an ILLEGAL ALIEN.
I think most if not all of those kids were born here..I am not jumping on the bandwagon that everyone is here illegally..my two grandmothers came from Ireland..granted the legal way but they were immigrants who emigrated here:>) I also have a legal Honduran and Dominican working for me and two of the best workahs I have ever had.
Interesting read on MD80s...
http://articles.moneycentral.msn.com/Investing/Extra/MD80WhyIsThisPlaneStillFlying.aspx#
Harry Tembenis
Worcester, Ma
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