Allegiant Air to Fly to Hawaii

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Allegiant Air to fly to Hawaii Table of Contents Abstract 3 Introduction 4 Market 5 Demand and Supply 6 Determinants 6 Production 7 Market Structure 11 SWOT 16 Pricing 17 Pricing and Factor Markets 18 Factor Markets 19 Pricing Strategies in Aviation 19 Capital budgeting and Risks 21 Government and the Airlines 22 Conclusions 24 References 26 Abstract Allegiant Air has had its share of ups and downs since its start in 1997. The company has grown from two short destinations to over 70. Now it wants to spread it wings even further, over the Pacific Ocean to Hawaii. Recently Allegiant purchased six Boeing 757-200 and has recently received its ETOPS certification in order to fly these twin-engine aircraft to Hawaii. Allegiant Air realized that Hawaii was an untapped market due to recent airline mergers and bankruptcies. Hawaii is the most prominent U.S. leisure destination that Allegiant can capitalize on along with hotel and car rental packages giving them a bigger piece of the pie. Allegiant Air is a low cost carrier with great customer service; its customers were looking for, a competitive alternative to Allegiants rivals. Introduction Allegiant Air was created in 1997 as WestJet Express in Enterprise, Nevada; Allegiant Air acquired its name and operating certificate in 1998, after a trademark dispute with West Jet Air Center of Rapid City, South Dakota. Its first scheduled service began in October, 1999, connecting Las Vegas and Fresno, California with a Douglas DC-9-21 and DC-9-51 aircraft. By December of 2000 Allegiant Air had filed for chapter 11 bankruptcy. A new management group was put into place and the company had a dramatic turn around going from two destinations to over 70. Allegiant prides itself on

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