Allegiant Air Is Not Concerned About Breeze Airways

Highly-anticipated startup Breeze Airways has revealed few details about its anticipated operations. However, when it finally launches operations,…

Allegiant Air Is Not Concerned About Breeze Airways

Highly-anticipated startup Breeze Airways has revealed few details about its anticipated operations. However, when it finally launches operations, Allegiant Air’s executives are not concerned about the added competition from the carrier. Instead, the airline is focused on its expansion plans and emboldened by a strong balance sheet.

Allegiant is not concerned about the impending entry of Breeze Airways in the marketplace. Photo: Vincenzo Pace | Simple Flying

Allegiant Air is not worried about the competition

On Allegiant’s first-quarter earnings call, CEO Maurice Gallagher was asked about the growth of low-cost competition in the US. In his comments, he specifically spoke about Breeze Airways:

“While we’re certainly going to pay attention to people, that’s not [the] first thing we look at this point in time. With the Breeze side of the house, they have an ambitious growth schedule, but with their airplane size and some things, I’m not terribly concerned about flying against a 110-seat airplane, which they’ll start with. The A220 is a good airplane, but they claim to be interested in longer-haul thinner markets. So, we’ll just have to wait and see.”

John Redmon, President of Allegiant, followed up with his own thoughts on branding:

“I think when you look at it, we’ve never been afraid of competition. But, financially, where we stood some time ago versus where we stand now, Maury stated in his comments, we all kind of alluded to it, but we’ve never been stronger with a stronger balance sheet in history of the company, frankly. So we’re well-positioned to take on anyone. When you look at the start-ups, they – literally – don’t have a brand. No one knows that brand in the marketplace. So, they’re coming in as a brand that no one’s ever heard of, and as Maury points out, maybe with a plane type that’s not as cost effective as ours in some cases. So, I think we’re very comfortable with where we stand, going forward.”

Allegiant Air is planning another capacity increase this summer, which is when Breeze is targeting a launch. Photo: Getty Images

Breeze Airways versus Allegiant

Breeze Airways is the brainchild of David Neeleman, who is best known for setting up JetBlue. The airline plans to fly point-to-point using Embraer E190/E195s to start and then move toward the Airbus A220-300.

Breeze is looking at a plethora of routes and markets. It wants to focus on point-to-point, low-cost travel between secondary cities. Allegiant also flies a similar model, with a focus on connecting leisure passengers. As an ultra-low-cost carrier, Allegiant has focused on offering a no-frills product and selling ancillaries to its customers.

Breeze Airways has yet to detail its full model and slate of offerings. While it wants to be low-cost, that model comes in many different varieties.

Breeze Airwyas
Many of Breeze Airways’ planned summer routes have no nonstop competition. Photo: Breeze Airways

Allegiant and Breeze likely will not compete too much. According to Mr. Neeleman, 80% of Breeze’s routes will have no competition this summer. Of course, those routes have yet to be revealed, and plenty of airlines have made new route announcements since his statement.

Allegiant is focused on its low-frequency, low-utilization model that has helped it be successful. It sees plans to grow and is stepping on the gas in 2021 as most of the larger airlines in the US focus on repairing their balance sheets, rebuilding their schedules, and reactivating their aircraft.

Allegiant Airbus A319
Allegiant’s smallest aircraft is the Airbus A319, which seats 156 passengers. Photo: Vincenzo Pace | Simple Flying

The interesting play in the market

Mr. Gallagher’s airline is in a great place and has big plans moving forward. For him, the more interesting play is the big three US airlines, as he stated:

“I think the really interesting play is how do the Big Three react […] they’ve got a ton of debt. Their cost structure is twice what any of ours are. I just don’t know how those guys kind of come down the hill – not to say they won’t – but long term.”

He went even further, stating:

“I think you’re going to see the ULCC side able to really gain a lot of market share, potentially, over the next couple years. And that’s what we are so bullish on because we can really stand alone in what we do and how we’ve done it.”

Allegiant Getty
Allegiant Air is is expecting a fantastic 2021 and is planning more growth with used aircraft acquisitions. Photo: Getty Images

The big three in the US refer to American, Delta, and United. The three major network airlines have all taken on new debt since the crisis started to shore up liquidity, and they have a lot of work to do.

Allegiant does not traditionally compete heavily with these three airlines. However, as all airlines are mainly oriented toward capturing leisure travelers, there is more and more overlap between the airlines. Allegiant has so far held its own, and it believes it can hold its own moving forward.

Whether it be Breeze Airways or the big three US airlines, Allegiant Air is ready to face the competition, and it believes it will win.

What do you make of Allegiant’s view toward Breeze Airways and the big three US airlines? Do you think Breeze Airways is a threat to Allegiant? Let us know in the comments!

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What Can You Do With A Retired Boeing 747?

The Boeing 747 has been inspiring travelers for more than half a century. Sadly, owing to both the…

What Can You Do With A Retired Boeing 747?

The Boeing 747 has been inspiring travelers for more than half a century. Sadly, owing to both the ongoing coronavirus pandemic and its rising age, the type is becoming an increasingly rare sight in the skies worldwide. However, despite no longer flying, some examples have gone on to serve other purposes after their retirement.

This 747 has been inventively repurposed as a hotel! Photo: Bahnfrend via Wikimedia Commons

Alternative accommodation

One of the ways in which the 747 was a game-changing aircraft was the fact that its extra space compared to its predecessors allowed for a more luxurious onboard cabin. The aircraft’s striking top deck became known for featuring opulent lounge and bar areas, such as Qantas’s Captain Cook Lounge. Meanwhile, airlines also offered premium passengers an exclusive cabin in the plane’s nose, such as Virgin Atlantic’s Upper Class.

While it is increasingly hard to find active 747s on which to enjoy a restful night’s sleep in the air, there is one instance where you can do so on the ground instead. Sweden’s Stockholm Arlanda Airport (ARN) is home to the incredible Jumbo Stay hotel.

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Jumbo Stay 747 Hotel Stockholm
Jumbo Stay guests can even stay in special pods in the plane’s engines! Photo: kitmasterbloke via Flickr

This project has seen a former Singapore Airlines and Pan Am 747-200 repurposed as an avgeek’s dream location for an overnight stay at Sweden’s largest airport. However, rather than merely using the cabin for accommodation as would have been the case during its service life, passengers can even stay in the engines! This is definitely one for the bucket list.

Educating the next generation of voters

Across the North Atlantic Ocean, another group has found a very different but equally useful purpose for a retired jumbo. The Air Force One Experience obtained an ex-Evergreen International Airlines 747-200F to create a replica of the US presidential jet.

Air Force One Experience 3
The Air Force One Experience uses a 747-200F to educate future voters. Photo: Air Force One Experience

School groups can enjoy a three-hour self-guided tour in and around the aircraft, which features re-creations of several significant onboard rooms. The project states that:

“Our mission is to educate the next generation of American citizens about the importance of democracy, civic responsibility, and the right to vote.”

An aquatic avgeek’s paradise

Having to exit an aircraft via an emergency slide is, thankfully, an extremely rare occurrence. However, what about doing so instead by the means of a water slide? Incredibly, this obscure proposition is in fact a reality at the Wings and Waves Waterpark in Oregon!

Evergreen Boeing 747 Water Park
A 747 sits atop the water park, and even houses two slides! Photo: Clemens Vasters via Flickr

On top of this aquatic leisure complex sits another ex-Evergreen 747. In this instance, the aircraft belonged to the family’s -100F variant, having been converted from a passenger-carrying China Airlines 747-100 in 1978.

As well as making the building as a whole look striking, the 747 is special in that it houses two water slides – certainly another one for the bucket list! It is very heartwarming to see the 747 live on through these, and other, inventive ground-based enterprises.

Have you ever visited any of these quirky retired Boeing 747s? How else might you like to see these aircraft used once their service life is over? Let us know your thoughts and experiences in the comments!

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