Summary
- Allegiant Air emerged with Make-A-Wish partnership, unique strategy, and a successful transition post-bankruptcy.
- Allegiant went public in 2007, switched logos, and retired MD-80s for Airbus A320s in the 2010s.
- Despite the pandemic, Allegiant fared well financially and plans to expand its fleet with Boeing 737 Max in 2022 and transition its credit card program in 2023.
Allegiant Air, the ultra-low-cost carrier based in Nevada, sprang into existence a little over a quarter of a century ago. Ever since, it has partnered with the Make-A-Wish foundation, giving flickers of hope to thousands of children; supported local clubs and kept its employees at the forefront by painting its aircraft into the colors chosen by the people who work for this carrier.
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During its operations, it has served passengers through the Airbus aircraft it owns, alongside the McDonnell Douglas DC-9, and Boeing 757s, and hopes to introduce the Boeing 737 MAX. The airline also built the $720 million Sunseeker resort, and some people wondered if this project was the craziest that this Nevada-based carrier carried out.
With a rich history spanning so many wonderful projects, it isn’t easy to pick which milestones have defined the shape of this carrier. Nonetheless, we will dive into the details of some events in this airline’s history that have been nothing short of landmarks.
Photo: lorenzatx | Shutterstock
The milestones in the 2000s
The bankruptcy that made the airline switch to a low-cost model
In 2000, Allegiant Air filed for bankruptcy. The major creditor of the airline (someone who was also the founder of ValuJet), Maurice J. Gallagher Jr., gained control of the airline and changed the airline’s business into a low-cost model. The airline also wanted to focus on smaller markets where larger airlines did not serve with mainline aircraft.
In the next two years, the airline exited bankruptcy. A few other notable events followed. These include:
- Allegiant partnered with Harrah’s “to provide charter services to its casinos in Laughlin and Reno.”
- By 2004, the airline was delivering bundled air and hotel packages to Las Vegas from 13 cities.
- The unique strategy of the airline has allowed it to remain profitable for nearly 70 quarters since 2003.
Going all public in 2007
Around the end of 2006, Allegiant Air became a public company. After its planned initial public offering, the airline raised $94.5 million in equity capital. The 5.75 million shares of the company were worth $18 each.
The milestones in 2010
By 2010, Allegiant Air had already flown one million passengers from Phoenix-Mesa Gateway (AZA) airport. Many new aircraft were added to the airline’s fleet, and some other interesting developments took place this decade.
A redesigned logo
The airline logo changes with time. American Airlines, one of the most prominent carriers in the US, has adopted a more sleek logo recently, despite keeping true to its original colors. Something similar happened with Allegiant Air, whose logo has a symbol of the sun above its name. According to logos-world.net, this element is:
“ part of the crest of Las Vegas, where the company’s headquarters are located and refers to the seal of the state of Nevada. Using the sun in the logo highlights Allegiant’s dedication to its “homeland” and is associated with the start of a new day, symbolizing the company’s aspiration for gradual flourishing. The sun’s positioning is interpreted as a setting symbol, indirectly reflecting the company’s original desire to be called “West,” indicating its focus on operations in the western United States. This dual symbolism adds depth and complexity to the company’s visual identity.”
Photo: Allegiant Air
There have been three versions of Allegiant Air’s logos. These include:
| Logo adopted from | features |
|---|---|
| 1998-2003 |
|
| 2003-2010 |
|
| 2010-2023 |
|
Retiring its MD-80s
In 2017, Allegiant Air announced adding 13 Airbus A320s to its fleet. Adding these new aircraft (by leasing) meant that the carrier could retire its McDonnell Douglas MD-80s, which were the backbone of the airline’s fleet for nearly a decade. According to Niccolo Serratt, a contributor for Simple Flying, the MD-80s were perfect for the working model of Allegiant Air, as the airline hoped to bounce back from its struggles in the early 2000s:
“ The MD-80s were favored for their durability and reliability, characteristics that were essential for an airline aiming to establish a strong operational foundation. Their robust performance and ability to handle frequent flights made them well-suited to Allegiant’s business model, which emphasized high utilization rates and efficient turnaround times.”
Allegiant Air flew the last of its MD-80s in 2018 and has opted to operate an all-Airbus fleet ever since. The carrier also operates aircraft from the Airbus A320neo family, which has helped reduce emissions and provide greater fuel efficiency.
Photo: Robin Guess | Shutterstock
Some of the other noteworthy events in Allegiant’s history in the 2010s have been the following:
- 2017: A partnership with Bank of America helped the carrier launch the Allegiant World MasterCard and myAllegiant Rewards program.
- 2019: NFL’s Las Vegas Raiders partnered with the carrier. This paved the way for a special livery in the colors of the football club on Allegiant’s Airbus A319-900.
Since the 2020s
With the onset of the COVID-19 pandemic, which led to a flurry of travel restrictions, many airlines suffered huge losses, with some being pushed to bankruptcy. However, Allegiant had the smallest revenue decline of any airline in 2020.
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In 2022, Allegiant announced that it had plans to purchase the Boeing 737 Max. This would see the carrier transition from an all-Airbus operating carrier into one with a mixed fleet. The CFO of the carrier, Greg Anderson, had talked to Simple Flying about the order of Boeing aircraft and commented:
“A part of the deal that made a lot of sense for us was making sure that we had Boeing’s full support. They came to the table in terms of bringing on a new fleet type, and making sure that it’s as seamless and efficient as possible.”
In 2023, the airline announced that its credit card program would transition into Allways Rewards Visa cards. Allegiant currently offers services from as many as 120 cities in the US. How its operations and working models might change with the acquisition of new aircraft is something that all aviation lovers have a keen eye out on.