Allegiant Air’s prospects appear strong despite concerns over canceled flights

Allegiant Air is on the rise, amid an order for 12 new planes, the company’s first labor contract brokered with pilots and no major problems cited in an audit by the Federal Aviation Administration.

But the second-in-command at the Las Vegas-based budget carrier acknowledges some turbulence ahead, particularly with addressing persistent customer complaints about late and canceled flights.

Part of that problem with on-time performance stems from Allegiant’s industry-defying strategy to concentrate service at airports in small and midsize cities, said Jude Bricker, the company’s chief operating officer.

When flights are canceled in these far-flung burbs, travelers are sometimes forced to wait for several days until the next available plane headed to their desired destination.

“Our reliability, which we’ve been very public about, has failed to meet our own expectations,” Bricker said during a recent tour of Allegiant’s training plant in southwest Las Vegas.

“We’re making all the right investments toward, what I think over time, will be a better customer experience,” he said. “The important thing is that we recognize it, and we’re making all the right moves to get there.”

Without disclosing current figures, Bricker said he hopes to improve Allegiant’s performance by January.

That’s when the carrier will be required for the first time to publicly report data for on-time performance rates to the Bureau of Transportation Statistics, which mandates the information from airlines that account for at least 1 percent of overall domestic airline revenue.

Part of the solution, Bricker said, lies with the reliability of Allegiant’s aircraft. The company is purchasing used and new Airbus A320 and A319 planes by mid-2019 while retiring its older fleet of McDonnell-Douglas MD-80 and Boeing 757 planes.

Another piece of the puzzle is employee relations, with an eye toward expanding the workforce from the company’s current 550 pilots to employing about 800 pilots by 2019.

The move comes as Allegiant enacts its first labor contract this month with the pilots after three years of negotiations. That five-year deal went into effect last week, providing an immediate 31 percent raise and improved benefits.

Allegiant will also soon hire workers for the headquarters building in Summerlin.

After four years of service, Allegiant is ending nonstop service this month between the U.S. mainland and Honolulu. Despite that, the company has a budding interest in international travel.

By December, Allegiant will launch its first flights to San Juan, Puerto Rico, originating from Sanford, Florida. And, the carrier could be flying into Cancun, Mexico, as soon as next year, Bricker said. Additional destinations to smaller airports in Mexico and the Caribbean are under consideration.

“We’re missing huge market opportunities,” Bricker said. “There are plenty of travelers in those locations who would appreciate the service.”

Bricker also said that he hopes to see restored confidence in Allegiant, noting that he was “proud” that the company will not face any penalties or enforcement action from a recent audit by the FAA.

The report, issued last month, listed a series of “minor” issues including a failure by crew members to consistently follow procedures, incomplete paperwork and passengers observed with excessive carry-on baggage.

“I don’t think any of those things are individually transformational,” Bricker said. “But as a whole, we can say that we’re moving forward.”

Contact Art Marroquin at amarroquin@reviewjournal.com or 702-383-0336. Follow @AMarroquin_LV on Twitter.