We are a leisure travel company focused on providing travel services and products
to residents of under-served cities in the United States. We were founded in
1997 and, in conjunction with our initial public offering in 2006, we incorporated
in the state of Nevada. Our unique business model provides diversified revenue
streams from various travel service and product offerings which distinguish
us from other travel companies. We operate a low-cost passenger airline marketed
to leisure travelers in under-served cities, allowing us to sell air transportation
both on a stand-alone basis and bundled with the sale of air-related and third
party services and products. In addition, we provide air transportation under
fixed fee flying arrangements. Our developed route network, pricing philosophy,
advertising, and product offerings built around sending customers to premier
leisure destinations, are all intended to appeal to leisure travelers and make
it attractive for them to purchase travel services and products from us.
Scheduled service air transportation. We provide scheduled air transportation
on limited-frequency nonstop flights predominantly between under-served cities
and popular leisure destinations. As of February 2, 2015, our operating fleet
consisted of 53 MD-80 aircraft, 11 A320 series aircraft, and six Boeing 757-200
aircraft providing service on 229 routes to 94 cities. Based on recent announcements,
we expect service will expand to 271 routes and 105 cities by August 2015.
Air-related ancillary products and services. We provide unbundled air-related
services and products in conjunction with air transportation for an additional
cost to customers. These optional air-related services and products include
baggage fees, advance seat assignments, our own travel protection product, change
fees, use of our call center for purchases, priority boarding, food and beverage
purchases on board, and other air-related services.
Third party ancillary products and services. We offer third party travel products
such as hotel rooms, ground transportation (rental cars and hotel shuttle products)
and attractions (show tickets) for sale to our passengers.
Fixed fee contract air transportation. We provide air transportation through
fixed fee agreements and charter service on a year-round and ad-hoc basis.
Other revenue. Consists principally of lease payments on aircraft or engines
that we own and are being leased to third parties. We may choose to temporarily
act as a lessor when we have opportunistically acquired aircraft or engines
while on lease to a third party. Upon the expiry of the lease, we would expect
to operate the assets ourselves.
Our principal executive offices are located at 1201 N. Town Center Drive, Las
Vegas, Nevada 89144. Our telephone number is (702) 851-7300. Our website address
is http://www.allegiantair.com. We have not incorporated by reference into this
annual report the information on our website and investors should not consider
it to be a part of this document.
We have developed a unique business model that focuses on leisure travelers
in small and medium sized cities. The business model has evolved as our experienced
management team has looked differently at the traditional way business has been
conducted in the airline and travel industries. Our focus on the leisure customer
allows us to eliminate the costly complexities burdening others in our industry
in their goal to be all things to all customers, particularly most other airlines
which target the business customer.
We have established a route network with a national footprint, providing service
on 229 routes between 81 under-served cities and 13 leisure destinations, and
serving 40 states as of February 2, 2015. In most of these cities, we provide
service to more than one of our leisure destinations. We currently provide service
to the popular leisure destinations of Las Vegas, Nevada; Orlando, Florida;
Phoenix, Arizona; Tampa/St. Petersburg, Florida; Los Angeles, California; Ft.
Lauderdale, Florida; Punta Gorda, Florida; the San Francisco Bay Area, California;
Honolulu, Hawaii; Palm Springs, California; and West Palm Beach, Florida. We
provide service on a seasonal basis to San Diego, California, and Myrtle Beach,
South Carolina, and have recently commenced service to New Orleans, Louisiana
and Jacksonville, Florida in February 2015.
The geographic diversity of our route network protects us from regional variations
in the economy and helps to insulate us from competitive actions, as it would
be difficult for a competitor to materially impact our business by targeting
one city or region. Our widespread route network also contributes to the continued
growth of our customer base.
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