Allegiant Air is an American low-cost airline that was founded in 1997. Its headquarter is in Las Vegas, Nevada.
It operates a mix of scheduled and charter flights to over 120 destinations in the United States, Mexico, and the Caribbean.
Its business model is centered around offering low fares on nonstop flights. Usually flights are to and from smaller, underserved cities.
The airline operates a fleet of narrow-body Airbus and McDonnell Douglas aircraft. And it primarily serves leisure markets.
In its early years, it faced financial challenges and faced criticism for its safety record. But, the company has made significant changes in recent years and has become a profitable and growing carrier.
Today, it is known for its low fares and innovative approach to air travel, and it has a loyal customer base of leisure travelers. In this article, we will take a look at the history, its early years, key milestones, expansion plans, and recent developments.
Allegiant Airlines Company History
Early years and expansion
Allegiant Airlines was founded in 1997 by Mitch Allee, Jim Patterson, and Dave Beadle. The airline name was WestJet Express and operated flights on behalf of WestJet, a Canadian low-cost airline.
In 2002, the company changed its name to Allegiant Air and began operating its own flights under the Allegiant brand. It operated flights between Las Vegas and smaller cities in the western United States, including Fresno, California, and Phoenix, Arizona.
Over the next several years, Allegiant experienced rapid expansion. It added new destinations and growing its fleet. In 2004, it added its first international destination, with flights to Cabo San Lucas, Mexico.
In 2007, it introduced its first Airbus aircraft, the A320, into its fleet. It was a significant milestone for the airline. This allowed it to expand its route network and offer longer-haul flights.
By 2010, it was serving over 50 destinations and had a fleet of more than 30 aircraft. It continued to expand in the following years, adding new destinations and growing its fleet.
Today, it serves over 120 destinations. They are in the United States, Mexico, and the Caribbean, and has a fleet of over 90 aircraft.
Key milestones and achievements
- Founding: It was founded in 1997 as WestJet Express. It operated flights on behalf of WestJet, a Canadian low-cost airline.
- Name change: In 2002, the company changed its name to Allegiant Air and began operating its own flights under the Allegiant brand.
- Fleet expansion: In 2007, it introduced its first Airbus aircraft, the A320, into its fleet. It allowed the airline to expand its route network and offer longer-haul flights.
- Destination expansion: In 2010, it was serving over 50 destinations and had a fleet of more than 30 aircraft. The airline continued to expand in the following years, adding new destinations and growing its fleet.
- Profitability: It has become a profitable and growing carrier. It has a loyal customer base of leisure travelers.
- Industry recognition: Allegianr airlines has received several industry awards and accolades. For example the “Low Cost Carrier of the Year” by Air Transport World in 2016.
- Community involvement: AllegiantAir is actively involved in the communities it serves. It focus on supporting local non-profit organizations and events.
Fleet and route expansion
It has expanded both its fleet and its route network in its history.
In terms of fleet expansion, the airline has added a number of aircraft types to its fleet over the years. It initially operated a fleet of McDonnell Douglas MD-80 and MD-87 aircraft. But it has since added Airbus A320 and A319 aircraft to its fleet.
It has also introduced newer, more fuel-efficient Airbus A320neo aircraft into its fleet.
In terms of route expansion, it has added new destinations to its network over the years. Also, in its early years, it served destinations in the western United States, including Las Vegas, Fresno, and Phoenix. But, it has since expanded to serve destinations in the eastern United States. Also international destinations in Mexico and the Caribbean.
Changes in leadership and ownership
In 2010, Mitch Allee, one of the co-founders, retired as CEO and was replaced by Maurice J. Gallagher Jr., who had been with the company since its inception. Gallagher served as CEO until 2018, when he retired and was succeeded by Maury Gallagher, his son and the current CEO.
In addition to changes in leadership, there have also been changes in ownership. In 2000, the company went public and was listed on the NASDAQ stock exchange. Then in 2007, the company was acquired by Mesa Air Group, a regional airline holding company, but it continued to operate under the Allegiant brand. In 2013, Mesa Air Group sold its stake in Allegiant back to the company’s management team, and the airline became a privately held company again.
Today, the company is owned and operated by a team of experienced aviation professionals, including its CEO, Maury Gallagher, and its President, John Redmond. It has a strong track record of stability and growth, and it has become a profitable and growing carrier in recent years.
Controversies and Challenges
It has invested in its fleet and implemented new safety procedures. And it has received industry recognition for its efforts.
Allegiant Airlines has also faced challenges related to its business model and financial performance. In its early years, it faced financial challenges and struggled to turn a profit. But, the company has made significant changes in recent years and has become a profitable and growing carrier.
Despite the challenges it has faced, it has remained a popular and successful airline.
Recent developments and future plans
The airline has made significant developments and has announced a number of plans for the future.
One of the main developments has been the airline’s expansion into new markets.
In 2020, it announced that it would begin serving several new destinations in the eastern United States. It included Raleigh-Durham, North Carolina, and Lexington, Kentucky. It also announced plans to add more international destinations in the Caribbean and Mexico.
Allegiant has continued to invest in its fleet. And it has introduced newer, more fuel-efficient Airbus A320neo aircraft into its fleet. The company has also announced plans to retire its older McDonnell Douglas aircraft and transition to an all-Airbus fleet.
AllegiantAir has also made efforts to improve its customer service. And address concerns about its safety and reliability. It has implemented new safety procedures. And it has received industry recognition for its efforts.
Looking ahead, the company has plans to continue expanding its route network and growing its fleet. The company is also focused on continuing to improve its customer service. Also to maintain its reputation as a reliable and affordable carrier.
Stock price History
Allegiant Travel Company is the parent company of Allegiant Air. It is an American budget airline that operates flights to and from small cities and vacation destinations in the United States.
The company’s stock is traded on the NASDAQ stock exchange under the ticker symbol “ALGT.”
Allegiant Travel Company went public in 2006 and began trading on the NASDAQ stock exchange.
Since then, the company’s price has fluctuated. It reflected the ups and downs of the airline industry as well as the company’s own performance.
- 2006-2012: After going public in 2006, Allegiant Travel Company’s stock price increased. It reached a peak of around $100 per share in 2012.
- 2013-2016: In 2013, it began to decline. It fell to around $60 per share by 2016.
- 2017-2018: In 2017, price began to recover. It reached a peak of around $180 per share in 2018.
- 2019-2021: In 2019, it began to decline again. It fell to around $90 per share in 2021.
It is worth noting that the stock market can be volatile. The performance of a company’s stock is not indicative of its financial health or future prospects. It is always important to do your own research and consult with a financial advisor before making any investment decisions.
Stock performance
The performance has been marked by both highs and lows over the years.
After going public in 2006, the stock price steadily increased over the next several years, reaching an all-time high of over $180 per share in 2015. However, the company’s price has been more volatile in recent years, with a number of factors contributing to its fluctuations.
One major factor that has affected stock performance is the overall state of the industry. Like many airlines, Allegiant Airlines has faced challenges due to rising fuel costs and increasing competition. These factors, along with economic downturns and other external pressures, have contributed to fluctuations in the price.
Despite these challenges, it has continued to grow and expand its operations. The company has consistently reported strong financial results, including strong revenue growth and profitability. This has helped to boost investor confidence and contribute to the overall positive performance.
The stock performance has been strong over the long term, with the company’s share price consistently outperforming the broader market indices. However, as with any publicly traded company, there are always risks and uncertainties that can impact the stock’s performance in the short term. It is important for investors to carefully consider these factors before making any investment decisions.
Factors affecting Stock Prices
- Profitability, and cash flow, can impact investor confidence and therefore the stock’s price. Positive financial results may boost it, while negative results may cause it to decline.
- Industry conditions: The overall state of the industry can impact. Factors such as fuel costs, competition, and economic conditions can all affect the company’s financial performance and therefore its stock price.
- Company-specific news: News such as new routes or partnerships, can also impact the price. Positive news may boost it, while negative news may cause it to decline.
- Market conditions: The broader stock market and economic conditions can also affect. If the overall market is performing well, it may boost the stock price, while a declining market may cause the price to fall.
- Investor sentiment: The overall sentiment of investors towards the company can also impact it. If investors are generally optimistic about the company’s prospects, it may boost the price, while negative sentiment may cause it to decline.
Allegiant Air Accident History
Safety record
There has been some controversy surrounding Allegiant Air’s safety record in the past. In 2017, a report by 60 Minutes, a news program on CBS, raised concerns about the airline’s maintenance practices and the frequency of in-flight malfunctions.
Since then, allegiant airlines has implemented several safety improvements, including hiring additional maintenance personnel, increasing training for employees, and upgrading its fleet. In 2019, the Federal Aviation Administration (FAA) conducted a comprehensive review of the safety program and found that the airline was in compliance with all applicable regulations and standards.
It’s worth noting that all major airlines have had some incidents in their histories, and it’s important to consider the overall safety record of an airline when making travel decisions. It’s also important to note that the vast majority of flights operated by Allegiant Airlines and other airlines are completed safely without incident.
List
Like all airlines, Allegiant has experienced a few incidents and accidents over the years. Here is a summary of some of the most notable incidents involving the airline:
- 2015 engine failure:
- In June 2015, a flight from Las Vegas to Fargo, North Dakota experienced an engine failure shortly after takeoff. The pilot was able to land the plane back at McCarran International Airport in Las Vegas. No passengers were injured.
- 2016 emergency landing:
- In August 2016, a flight from Las Vegas to Cedar Rapids, Iowa was forced to make an emergency landing at McCarran International Airport. The plane’s nose gear failed to deploy . No passengers were injured in the incident.
- 2018 emergency landing:
- In July 2018, a flight from Fresno, California to Las Vegas was forced to make an emergency landing at McCarran International Airport. The plane experienced a pressurization issue. No passengers were injured in the incident.
- 2019 engine failure:
- In June 2019, a flight from Las Vegas to Grand Junction, Colorado experienced an engine failure shortly after takeoff. The pilot was able to safely land the plane back at McCarran International Airport in Las Vegas, without any injured passengers.
Allegiant Air has a good safety record. The incidents and accidents that have occurred have resulted in no fatalities or serious injuries to passengers. But, it has faced criticism in the past for its maintenance practices and for operating older aircraft.
In 2018, the Federal Aviation Administration (FAA) launched a review of operations and maintenance programs. But the review did not result in any significant findings or penalties for the airline.
All airlines must adhere to strict safety regulations and standards set by the FAA. Passengers can check the safety record of any airline before booking a flight. They can review the FAA’s Air Travel Consumer Report. Or visit the website of the Aviation Safety Network. It tracks aviation accidents and incidents worldwide.