Margaritaville

Looks like Jude is making a play. Will Maury respond or will he keep his arrogant position that they can't match us, and letting every airline steal our turf?

This will be a preview to see if we react to Breeze or let them kill us. They are planning for 80 220s now. We may be at a crossroads for this airline for those paying attention. We are going to have to learn to compete or die.

https://minnesota.cbslocal.com/2021/...ayman-islands/

https://www.reuters.com/business/aer...es-2021-04-26/

captnate702

Flying from Minnesota to Mesa or PIE is no big deal, that shouldn't ruffle any feathers.

Now Breeze on the other hand... Lukas basically built our current network and is a wallstreet darling - smart money is that Breeze is a formidable foe. The economics on the 220 are lightyears ahead of the 320. Breeze will have a significant cost advantage from day one and that will only grow as the scale of their operation grow (did you see what their starting pilot pay is???). Management better be ready to compete with Breeze or else all our growth will be right back to Sunseekers all over the worst parts of florida.

Margaritaville

So what was the number for that trucking school?

labbats

I get paid to fly planes not worry about all this. Let the ivory tower earn their high pay and stock options like everyone else.

j3cub

We dont fly to Sun Countrys hub of MSP anyway. Yawn. Who cares.

Jim Rockford

*****Yawn*****

captnate702

I don't disagree that we get paid to fly planes; having said that, I think it is a bit naïve to see the hyper competitive environment between ULCCs and then have two newcomers that both have deep ties to Allegiant and not be a little concerned. My concern is not that Allegiant gets bought out, but that MG and Redmond choose to stop investing in the airline and start building swamp resorts. We know that is a strong possibility because they are already did it, ironically the pandemic forced them to invest back in the airline and go into hyper growth mode.

Our growth plans increased due to the pandemic and the used aircraft available on the market. If things get hyper competitive again, my concern is that we retreat back to the swamp and build SS money pit.

labbats

Yes but what are you going to do about it other than worry? I’m done with that.

captnate702

You're right, there's nothing I can do about it. But, I run my mouth about stuff that I have no control over - isn't that the point of the internet

astaz

I'm not sure about the significant cost advantage... Their acquisition and lease cost will be WAYYY higher than that of what we buy our 320s for. Then, I'm guessing they're maybe going to get 140 people into the airplane. As an LCC/ULCC, your bread and butter is CASM.

Now this is super rough math... but... The A220, allegedly costs (Delta) $2,343 per block hour to operate without crew. The A320 (for Allegiant) is $2,979 per hour, again, without crew. If you have 140 people sharing that cost for the 220, it brings you out to $16.74 each. If you have 186 people paying for the 320, it comes out to $16.02 each.

Now, I'm not saying the 220 doesn't have a niche, because it most certainly does... but on your bread and butter routes, the 320's economics are pretty tough to beat. ESPECIALLY if you can sell all the extra seats (and the bags, seat selections, and cheez-itz to go along with them).