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Allegiant Air

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Allegiant Air Portfolio

Embry – Riddle Aeronautical University

Allegiant Air Portfolio
Introduction
Allegiant is more than an airline, it’s an innovative travel company dedicated to providing the best travel deals to its customers. Linking small U.S. cities to world-class leisure destinations such as Florida, Las Vegas, Phoenix, California, Hawaii, and Myrtle Beach, S.C. Allegiant provides low-cost travel packages that include not only air, but hotel, rental car and entertainment tickets (Lindsay, 2009).
History
Allegiant was founded in 1997 in Fresno, California. In 1999, the company began scheduled passenger service between Fresno and Las Vegas utilizing a DC-9 aircraft (AllegiantAirInformation, 2010). In December 2000, Allegiant filed for bankruptcy and Maurice J. Gallagher Jr., the major creditor of the airline, gained control of the business during reorganization (AllegiantAirInformation, 2010). In June 2001, Gallagher restructured the airline to a low cost model and moved the headquarters and operations to Las Vegas, where they remain today. Allegiant’s unique strategy has allowed the company to remain profitable every quarter since 2003 despite industry challenges that include fluctuating fuel costs and an unstable economy. Gallagher remains Chief Executive Officer and Chairman of Allegiant (AllegiantAirInformation, 2010).

Today, the travel company continues its focus on linking travelers in small cities, generally at underserved airports that have limited or no airport service, to top leisure airports destinations. Allegiant is led by a team of successful airline industry veterans who take the proven attributes of the low cost airline business model and creatively adapt them to best serve the company’s targeted leisure clientele and destinations (AllegiantAirInfomation, 2010).
Financial Performance Allegiant Air common stock is quoted on

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