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Allegiant to Add 19 A319s to Their Fleet

I was just about to write about Allegiant picking up 10 A319s from Cebu Pacific and 9 from Easyjet, but then Cranky beat me to it, and let’s be honest, I’m WAY lazier than he is. Look – he’s got graphics and whatnot in there. I can’t compete. So, in short:

– They’re grabbing these planes because, well, they can and no one else wants them.
– Their operating costs are lower than the MD-80s they typically fly around (nearly 10% cheaper).
– A319 will allow for greater range and flexibility than the MD-80s

Sure, adding more plane types adds to the complexity of the operation, but their costs are much lower, and the aircraft were available. Allegiant runs a tight ship (in my mind they are, with Spirit and US Airways, the best run airline in the US). What was that? Yes, Allegiant, Spirit and US Airways. Who else has run a consistently great business in the airline industry. OK, Southwest. Fine. Throw them in there, too. But look at the stock returns from Allegiant, Spirit and US Airways vs Southwest and see who is kicking some butt (answer: Allegiant, Spirit and US Airways). You don’t have to fly them, but you do have to respect their operational focus.

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  1. You are forgetting Alaska as the best run. They established tighter capacity and return of investment at 15% over the course of the business cycle long before United, Delta, American and US Airways. They established themselves in the fiscal lead of the airline industry long before anyone else and pioneered the concept of eliminating seasonality. ALGT and Spirit are still in growth mode and have not been tested the way legacies have. KBC

  2. Aligiant pisses me off with all their hidden fees, nickle and dimey horse crap.

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