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Allegiant Travel Company to Purchase Six Boeing 757 Aircraft


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Bean... thoughts?

LAS VEGAS, March 5 /PRNewswire-FirstCall/ -- Allegiant Travel Company (Nasdaq:ALGT - News) today announced it has signed a forward purchase agreement to acquire six Boeing 757-200 aircraft. The introduction of the 757 aircraft will enable Allegiant to expand its leisure travel strategy into Hawaii with flights to be operated by Allegiant Air, LLC, its airline subsidiary

http://finance.yahoo.com/news/Allegiant-Travel-Company-to-prnews-1999870844.html?x=0&.v=1

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I would imagine these are the ex-Britannia 757's from ThompsonFly G-BYAD and AI have already been withdrawn, two of them have been in the US since January.

I'm thinking the folks at Southwest must be kicking themselves for not having had the vision to recognize the Southwest Express concept 12 years ago.

Allegiant would not exist had they done so. I doubt jetBlue would exist either.

Visionaries were overuled by functionaries who thought they were visionaries.

Big lesson to be learnt here.

:gossip:

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I'm thinking the folks at Southwest must be kicking themselves for not having had the vision to recognize the Southwest Express concept 12 years ago.

Allegiant would not exist had they done so. I doubt jetBlue would exist either.

Visionaries were overuled by functionaries who thought they were visionaries.

Big lesson to be learnt here.

:gossip:

What is/was the Southwest Express concept?

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Southwest experimented extensively in the mid-80's after taking over Muse Air and they got the pounding in Houston from Frank Lorenzo they would have received from American and Braniff had they moved Southwest to DFW in the Metroplex. As time went on they just began to retrench TranStar into flying to the west coast, Vegas and Florida from large Texas cities at which point they were just duplicating the expanding Southwest.

This experience made Southwest intensely conservative and focused on not being all things to all people.

Allegiant works because they have capital costs that allows for very deliberate fleet utilization, you can't get away with flying a NG or Airbus five or six hours a day or whatever their utilization is these days.

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No, it is the reason Southwest is so conservative about material changes to their strategy and in the 90's it was still fresh in their mind. Muse/Transtar was to be their laboratory and little they tried there was actually successful. Including Allegiant like service linking the teaming metropolises of Lubbock and Midland Texas to Las Vegas and the west coast.

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