ALLEGIANT AIR:“going where they ain’t”

Presented by Kajal kumari

Ragini khandelwal Subodh pratap singh

Kumar vivek vaibov balodhi

Contents –• History• Introduction• Market status• Routes map• Market strategy• Marketing• How it helped• Conclusion

History • founded -1997 WestJet Express. Founded by Mitch Allee (Owner,

CEO), Jim Patterson (President) and Capt. Dave Beadle (Chief Pilot).• The corporate headquarters are in Summerlin, Nevada, a

master-planned community in suburban Las Vegas, Nevada.• Company slogan --- “Travel is our deal”• Parent company --- “Allegiant Travel Co.”

Brief Introduction • Ultra low cost carrier• Operates in 86 cities• Doesn’t follow conventional JetBlue model• Gallagher doesn’t have much cash• Result- most sucessful airline• In worst recession of history seen straight nine years of profit

Market status • He had only one guzzling,aging,150-seater MD-80 airplane

• Top ten on Forbes

• In list of top 100 fortune company

• As a result of flying where other airlines don’t, Allegiant has direct competition on very few of its 166 routes.

Routes map

Market strategy • Use older and cheaper aircraft types that allow it to adjust frequency

and aircraft utilization according to demand.• The carrier’s aircraft averaged 6 hr. of utilization, saves cost on

maintenance• Main competitor in market – spirit airlines• Teaser fare as low as 9$,but charges even for services such as checked

bags• In addition to baggage and onboard fees, Allegiant has also gone

beyond other carriers in selling third-party services

Marketing • Allegiant makes third-party services and optional fees a major part of

the purchasing process, promoting them heavily throughout each online transaction.• Targets smaller cities routes• Doesn’t target usual frequent flyers, instead target those who doesn’t

fly all that much.• Uses old airplanes• Stuff additional seats on airlines

How it helped…• Allegiant’s planes are full, profits soared 200% in the first quarter to

$28.2 million, and the number of passengers is up 18% through May

• Allegiant revenue soared 17 percent, with gross margins of 51 percent- double those of industry darling southwest worst recession in recent memory.

• Allegiant start travel package with such as orlando,las Vegas and Peoria. Now allegiant profit become more than before.

Conclusion • Allegiant Air has developed a new model and earned good revenues

by its strategies

• the company offers its economic services at the areas where there are large customers and the areas are untouched by the competitors

• Allegiant Air worked out very smartly on its competitive strategies

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