Allegiant Air
04-04-2017, 08:30 AM
#5321
Gets Weekends Off
Joined APC: May 2016
Position: AB
Posts: 293
Glad they got a smokin' deal financing their new planes, the point is that AAY is no less leveraged--or vulnerable, than others in an economic downturn or spike in oil. They own/finance/lease aircraft, pay for maintenance, fuel and payroll like any other airline. Like others, their costs are rising but Allegiant has a great business model.
The link provided shows WN owning 80% of their fleet. Like AAY, how much WN or UAL pays down vs. borrow or lease on whatever aircraft changes daily and is somewhat irrelevant given today's cheap money. Sometimes it's wiser to borrow. Whatever the case, a strong debt/asset ratio ensures ownership factors will not determine whether an airline survives a downturn. Solid business plans/practices, strong balance sheets, cost structures and risk mitigation are what determine an airline's fate, not whether they own planes or not. There is a race to the bottom and the big guys aren't sitting on the sidelines.
If, as you say, history repeats itself, AAY might be in trouble. Looking at the track record of small airlines, most have been absorbed or driven under by the big ones. I hope that doesn't happen. Again, best of luck to you guys.
The link provided shows WN owning 80% of their fleet. Like AAY, how much WN or UAL pays down vs. borrow or lease on whatever aircraft changes daily and is somewhat irrelevant given today's cheap money. Sometimes it's wiser to borrow. Whatever the case, a strong debt/asset ratio ensures ownership factors will not determine whether an airline survives a downturn. Solid business plans/practices, strong balance sheets, cost structures and risk mitigation are what determine an airline's fate, not whether they own planes or not. There is a race to the bottom and the big guys aren't sitting on the sidelines.
If, as you say, history repeats itself, AAY might be in trouble. Looking at the track record of small airlines, most have been absorbed or driven under by the big ones. I hope that doesn't happen. Again, best of luck to you guys.
We make money with the Airbus running 10-12 hours a day 5 days per week. We don't need to run 18 hours a day 7 days a week like most of the others do.
04-04-2017, 09:29 AM
#5322
Kabuki Kool
Joined APC: Jul 2016
Position: fu3king.airline@Furlough. DNA
Posts: 447
I’ll take my chances with the ulcc model. Norwegian; only the beginning. Polite letters by a bunch of airline workers, will do nothing to change this. Till then live life where one lives not the hotel bar, or be snacky-snack for bed bugs. Back bone of schedules; Day trips.
04-04-2017, 10:26 AM
#5323
Gets Weekends Off
Joined APC: Feb 2012
Posts: 566
You say AAY is no less volnerable yet they, along with WN were the only airlines to make a profit throughout the complete last recession which speaks for itself. They have a few competitive advantages to help with that while you could argue WN only weathered the storm in the black because they hedged their fuel. I've never seen a small airline in history have 80% of their routes with zero competition and the highest profit margins for any airline. There isn't much else in common with historic airlines other than the size of the airline and previous maintenance issues.
04-04-2017, 12:06 PM
#5324
Swimmin' in da pool
Joined APC: Jan 2014
Posts: 444
You say AAY is no less volnerable yet they, along with WN were the only airlines to make a profit throughout the complete last recession which speaks for itself. They have a few competitive advantages to help with that while you could argue WN only weathered the storm in the black because they hedged their fuel. I've never seen a small airline in history have 80% of their routes with zero competition and the highest profit margins for any airline. There isn't much else in common with historic airlines other than the size of the airline and previous maintenance issues.
Last edited by dawgdriver; 04-04-2017 at 12:49 PM.
04-04-2017, 01:06 PM
#5325
Swimmin' in da pool
Joined APC: Jan 2014
Posts: 444
Regarding the comment on history and previous maintenance issues, small airlines have traditionally been more vulnerable to mishaps than larger carriers. Compare ValuJet's single (maintenance related) mishap to US Air's multiple accidents and consider which one survived. Obviously we all pray that never happens to any airline but it does highlight
relative vulnerability.
relative vulnerability.
Last edited by dawgdriver; 04-04-2017 at 01:18 PM.
04-04-2017, 02:59 PM
#5327
Banned
Joined APC: Apr 2014
Position: Da Bus
Posts: 481
04-04-2017, 03:50 PM
#5329
Gets Weekends Off
Joined APC: Apr 2008
Position: On the road
Posts: 165
JAN class was mostly MD80 with a few Airbus spots mixed in. FEB was all Airbus. My guess for APR would be a mix of both, but that is just a guess.
04-04-2017, 04:17 PM
#5330
Gets Weekends Off
Joined APC: Oct 2010
Position: Airbus CA
Posts: 948
Thread
Thread Starter
Forum
Replies
Last Post
