85°F
weather icon Clear

Allegiant sees benefits from Las Vegas stadium deal

As the rebel of the NFL, the Raiders may have found an ideal partner for the naming rights to Las Vegas’ 65,000-seat indoor stadium in Allegiant Air.

Like the Raiders, Las Vegas-based Allegiant is a maverick in aviation with unconventional strategies that disrupt what customers have come to expect from airlines. While major carriers focus on business customers whose expense accounts can afford high fares, Allegiant hones in on the thrifty leisure traveler.

Some don’t like the unbundled menu of ancillary services passengers buy when they fly Allegiant. Some call it nickel-and-diming the customers; Allegiant views it as passengers paying only for what they want and notes the charges are almost always wrapped around a low base fare. Over time, Allegiant customers have changed the way they travel, becoming more economically minded. Allegiant once carried an average 1.1 bag per passenger; today, it carries 0.5.

It’s possible some sports fans had to do a Google search to find out what Allegiant is.

More than likely, their searches brought up the airline’s turmoil in 2015 with mechanical breakdown issues and labor unrest. Newspapers and “60 Minutes” reported about its troubles long after the company set out to fix its problems, a turnaround that Chairman and CEO Maury Gallagher affectionately refers to as “Allegiant 2.0.”

One result of Allegiant 2.0 is that the company was able to make the bold step of sponsoring an NFL venue, giving the company an opportunity to tell its story to a national audience thanks to the name recognition Allegiant will get on Sundays and in prime time.

Allegiant can afford the price tag, estimated at between $20 million and $30 million a year for up to 30 years. Gallagher wouldn’t disclose the exact numbers in an interview last week and said he has no plans to make them public.

What are public are the company’s quarterly results. For the first six months of 2019, Allegiant showed net income of $127.7 million. It’s easily one of the most profitable airlines flying, with the best margins in the business.

The growth trajectory also is impressive. Gallagher expects revenue to surpass $2 billion by next year. Five years ago, it was at $1 billion.

The most noticeable change with the airline has been the 100 percent turnover of its fleet, going from older, gas-guzzling McDonnell-Douglas MD-80 jets to newer, more fuel-efficient Airbus A320s and A319s.

That change alone has improved reliability. In July, Gallagher said, Allegiant had three mechanical disruptions on more than 10,000 flights, for a 99.9 percent controllable completion rate.

The company is using big data to predict when something will break on an airplane, storing more spare parts and training mechanics how to prepare for mechanical issues that would ground an aircraft and damage its credibility with customers.

Most of the improvements Gallagher’s team has generated are data-driven, and the benefits of placing the Allegiant name on the stadium will drive even more data the company’s way, enabling new marketing options through the Raiders and their affiliates.

Allegiant flies to 120 cities and has database access to 275 million people within 45 minutes of an airport served by the airline.

Gallagher, a former Bay Area resident and Raiders fan, is enthused about what the naming-rights deal means for the company’s future. The airline is nimble enough and will have access to game tickets to be able to add flights to bring more fans of the Raiders or their opponents to Las Vegas. That means more room nights in local resorts and meals in Las Vegas restaurants.

The NFL believes the fan intensity level is greater in some of the small cities Allegiant serves than in their hometowns. That makes sense: What else is there to do on a Sunday afternoon in McAllen, Texas, than watch and cheer for the Cowboys? In Dallas, there are plenty of other attractions competing for that entertainment dollar.

While Hawaiian Airlines has the Raiders’ charter business contracted for the 2019 season, Gallagher said, it isn’t beyond the realm of possibility that Allegiant could become a team charter operator in the future. Hawaiian has the advantage of flying wide-bodied jets that are comfortable enough for 6-6, 275-pound linemen. Gallagher said his company could explore reconfiguring one of its planes to make for a comfortable charter flight.

In the meantime, Allegiant could look at other charter flying opportunities for fans wanting to attend a game in Las Vegas.

“It’s another step — a big step — toward being a customer-centric travel company,” Gallagher said of the naming-rights deal. “If you’re thinking of leisure, we want you to think of Allegiant. What more leisurely event is there on a Sunday afternoon than watching football or going to a football game? So we’ve bound ourselves at the hip with those guys (the Raiders).”

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on Twitter.

Don't miss the latest Raiders news. Like our Vegas Nation page
Raiders Videos
Potential grass Raiders will play on being tested out by stadium crew - Video
The Raiders have yet to decide which grass they will choose as the turf the team plays on when it comes to Las Vegas in 2020, but the testing process is already underway at Allegiant Stadium. (Heidi Fang/Las Vegas Review-Journal)
Raiders Vs. Cardinals Post Game Press conference
The Oakland Raiders came away with a preseason 33-26 win over the Arizona Cardinals on Thursday night. Raiders head coach Jon Gruden talks to media after the game.
Raiders defense steps up in win over Cardinals - Video
The Oakland Raiders came away with a preseason 33-26 win over the Arizona Cardinals on Thursday night. Vegas Nation host Cassie Soto and Raiders beat writer for the Las Vegas Review-Journal Myles Simmons discuss three takeaways from the win.
Vegas Nation Mailbag August 15, 2019
The Review-Journal's Heidi Fang and Ed Graney are back for a new rendition of the Vegas Nation mailbag! Send in your Raiders questions, and they'll answer them live on the stream.
Derek Carr and Jon Gruden talk Antonio Brown Return - VIDEO
Raiders Quarterback Derek Carr talks to the media about Antonio Brown's return to Napa. Head Coach Jon Gruden talks roster cuts and Brown's appearance. (Le'Andre Fox/Las Vegas Review-Journal)
Raiders Training Camp Day 12 Wrap Up - VIDEO
Michael and Myles discuss Antonio Brown's surprise appearance at Raiders Training Camp. (Le'Andre Fox/Las Vegas Review-Journal)
Antonio Brown Full Press Conference - VIDEO
Raiders Wide Receiver Antonio Brown showed up late to Tuesday's practice in Napa, California and addressed his current situations in the Raiders press conference. (Le'Andre Fox/Las Vegas Review-Journal)
Raiders Preseason Game 1 Wrap Up - VIDEO
Heidi, Adam and Michael discuss everything that happened during the Raiders first and final preseason game in Oakland,CA (Le'Andre Fox/Las Vegas Review-Journal)
Jon Gruden talks preseason excitement, Peterman and Doss TD connection
Raiders Head Coach Jon Gruden talks about the competition and excitement of preseason games. Nathan Peterman and Keelan Doss talk about their touchdown connection in Doss' hometown. (Le'Andre Fox/Las Vegas Review-Journal)
Raider Fans say HBO Hard Knocks got them pumped for the season
With the Oakland Raiders being featured on HBO's Hard Knocks, the Review-Journal's Heidi Fang asked fans at training camp in Napa what they thought about the team being on the show, how their team was portrayed and their reactions to what they saw. (Heidi Fang/Las Vegas Review-Journal)
Jon Gruden Talks Plans for Saturday's Preseason Game - VIDEO
Best of the press conference after day 2 of joint Practices with the Los Angeles Rams from Napa, CA. (Le'Andre Fox/Las Vegas Review-Journal)
Raiders Training Camp Day 11: Day 2 of Joint Practice with the Rams - VIDEO
Adam and Michael discuss everything from the final day of practice before the first preseason game against the Los Angeles Rams. (Le'Andre Fox/Las Vegas Review-Journal)
Rams talk about skirmishes with the Raiders - Video
On the second day of the Los Angeles Rams and Oakland Raiders joint practices at training camp in Napa, skirmishes broke out between the teams. Rams coach Sean McVay, cornerback Marcus Peters and defensive tackle Aaron Donald talk about what happened on the field when push came to shove. (Heidi Fang/Las Vegas Review-Journal)
Rams QB Jared Goff gives the Raiders some advice for Hard Knocks - VIDEO
After a joint practice at the Raiders NFL training camp in Napa, Rams quarterback Jared Goff gave some advice for the Raiders who are being featured on HBO's Hard Knocks. Running back Todd Gurley spoke about the Raiders rookie running back Josh Jacobs and head coach Sean McVay spoke about Lamarcus Joyner and Antonio Brown. (Heidi Fang/Las Vegas Review-Journal)
Raiders Training Camp LA Rams first joint practice - VIDEO
The Oakland Raider had their first joint practice with the La Rams before Saturdays first NFL preseason matchup. The Review-Journal's Michael Gehlken and Adam Hill breakdown recap the days practice.
Raider The Dog - Video
Raider The Dog gave a demonstration of his suspect apprehension abilities at Raiders Training Camp after practice in Napa. (Le'Andre Fox/Las Vegas Review-Journal)
Best of Sound Day 9
The best of Jon Gruden's press conference after day 9 of Raiders Training Camp from Napa, CA
Wrap Up Day 9 - VIDEO
Adam and Michael wrap up day 9 of Raiders Training Camp from Napa,CA before the first episode of HBO's Hard Knocks airs.
Allegiant celebrates naming deal with tailgate party
Allegiant Air employees celebrate with a tailgate party after the company’s naming deal with the Raiders for the new Las Vegas stadium.
Raiders Topping Ceremony of Allegiant Stadium in Las Vegas - Video
The Raiders held a topping ceremony in Las Vegas where the last beam to connect the last roof truss was hoisted into the stadium frame. The team also announced their naming rights partner, Allegiant Air. (Heidi Fang/Las Vegas Review-Journal)
Day 8 Wrap Up - VIDEO
Michael and Adam wrap up day 8 of Raiders Training Camp from Napa, CA
Day 7 Raiders Wrap Up - VIDEO
Michael and Adam wrap up an easy day 7 of Raiders Training Camp from Napa,CA
A look at the Raiders headquarters under construction in Henderson
Don Webb, chief operating officer of the LV Stadium Co., gives the Review-Journal a tour of the Raiders headquarters under construction in Henderson. (Rachel Aston/Las Vegas Review-Journal)
Raiders Training Camp Wrap Up Day 4 - VIDEO
Michael discusses everything that went on in day 4 of Raiders Training Camp before the players first day off.
Linebacker Brandon Marshall says the Raiders going to Las Vegas is a dream come true
A Cimarron-Memorial product who now plays linebacker for the Oakland Raiders says he'll do everything in his power to be a part of the 2020 roster that will play in his hometown of Las Vegas. (Heidi Fang/Las Vegas Review-Journal)
Raiders Training Camp Day 3 Wrap Up - VIDEO
Ed and Michael discuss the Raiders first practice in pads from Napa, Ca.
Raiders offensive line a focus at training camp
During the offseason, the Oakland Raiders looked to bolster their offensive line with the addition of offensive tackle Trent Brown. Offensive coordinator Greg Olson, tackles Brown and Kolton Miller, and running back Doug Martin talked about how the o-line is shaping up during training camp.
Raiders Training Camp Day 2 Wrap Up - VIDEO
Ed Graney and Michael Gehlken discuss what they saw on the second day of Raiders training camp from Napa, Ca.
Raiders Training Camp Day 1 Wrap Up
Ed Graney and Michael Gehlken wrap up the first day of Raiders Training Camp in Napa, Ca. (Le'Andre Fox/Las Vegas Review-Journal)
Carr, Williams, Incognito speak at Raiders training camp
Raiders quarterback Derek Carr, wide receiver Tyrell Williams and offensive guard Richie Incognito spoke to media following the first day of training camp. Incognito spoke about mental health awareness while Carr and Williams spoke about Antonio Brown.
Video - Raiders WR Antonio Brown placed on non-football injury list
The Raiders announced on Friday, just one day prior to the start of the team's NFL training camp in Napa, that star wide receiver Antonio Brown was placed on the non-football injury list. Michael Gehlken updates on just how long Brown might be out. (Heidi Fang/Las Vegas Review-Journal)
Raiders WR Antonio Brown arrives in Napa in a hot air balloon, injury updates - VIDEO
Raiders general manager and head coach Jon Gruden held a press conference from team's training camp in Napa to address some of the latest topics, including Antonio Brown's arrival in a hot air balloon. The Review-Journal's Michael Gehlken, Ed Graney and Cassie Soto break down the latest. (Heidi Fang/Las Vegas Review-Journal)
MGM Resorts views Las Vegas stadium as opportunity
MGM Resorts International intends to offer tailgating experiences at its resorts before and after events at Raiders stadium. (Michael Quine/Las Vegas Review-Journal)
Mayock discusses signing Incognito
Raiders GM Mike Mayock speaks to media regarding the team signing Richie Incognito.
Business Videos
MAGIC Convention Day 3
The fashion trade show MAGIC, held Monday through Wednesday at the Las Vegas Convention Center. (Elizabeth Brumley/Las Vegas Review-Journal)
MAGIC Las Vegas - Day One
The biannual MAGIC convention show opened Monday at the Las Vegas Convention Center. (Elizabeth Brumley/Las Vegas Review-Journal)
Allegiant celebrates naming deal with tailgate party
Allegiant Air employees celebrate with a tailgate party after the company’s naming deal with the Raiders for the new Las Vegas stadium.
Nevada's sportsbook operators welcome competition
Sportsbook operators from near and far are looking to get into in the established Nevada market, experts say. (Las Vegas Review-Journal)
Get a first look of MSG Sphere construction in Las Vegas
Representatives of The Madison Square Garden Company give the first glimpse of progress Tuesday of the under-construction MSG Sphere — a first-of-its-kind performance venue with high-tech audio and visual capabilities.
There's a new place to play board games in Las Vegas
Matt Smiciklas, co-owner of Boarding School Games, talks about the new Las Vegas business that he co-owns with Emily Labejof. Dedicated tabletop gamers can choose from more than 500 games to play for free in-store. The doors open to the public Saturday, July 20, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Renovations at the STRAT
Analysts say the $140 million renovation project at The STRAT, formerly the known as the Stratosphere, could help the hotel-casino compete with the evolving north side of the Las Vegas Strip. (Bailey Schulz/Las Vegas Review-Journal)
SLS Las Vegas will become Sahara Las Vegas
Owner Alex Meruelo announced during a special event at the SLS Las Vegas that the hotel-casino will become Sahara Las Vegas in its next iteration. Meruelo said $150 million dollars will be spent to renovate the current property. (Heidi Fang/Las Vegas Review-Journal)
Aircraft hinge maker moves to "business friendly" Nevada
Doug Silva, president of Aircraft Hinge, Inc. in Las Vegas, makes every type of hinge for every type of airplane. Silva talks about his company and why he moved it to Nevada. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
Daytime fireworks mark the opening of Encore Boston Harbor
The opening of the $2.6 billion Encore Boston Harbor in Everett, Mass. included a three-minute fireworks show launched by Fireworks by Grucci Sunday, June 23, 2019. (Rick Velotta/Las Vegas Review-Journal) @RickVelotta
Elaine Wynn talks about the opening of Encore Boston Harbor
Elaine Wynn, co-founder and largest shareholder of Wynn Resorts, talked during opening festivities of the $2.6 billion Encore Boston Harbor in Everett, Mass. Sunday, June 23, 2019. (K.M. Cannon/Las Vegas Review-Journal) @KMCannonPhoto
People line hours ahead of opening for Encore Boston Harbor
Guests arrive as much as 17 hours early for the 10 a.m. opening of the $2.6 billion, 671-room resort in Everett, Mass. Sunday, June 23, 2019. (K.M. Cannon/Las Vegas Review-Journal) @reviewjournal.com
Allegiant Discusses Investments In Golf Course Software And Game Rooms - Video
Allegiant Discusses Investments In Golf Course Software And Game Rooms.
Crews working 24/7 to complete Circa downtown - VIDEO
Owner Derek Stevens goal is to open the doors to the 1.25 million-square-foot project by December 2020. (Michael Quine/Las Vegas Review-Journal)
Golden Knights Marc-Andre Fleury sells Las Vegas home - VIDEO
Golden Knights goaltender Marc-Andre Fleury has sold his custom home Southern Highlands home in Las Vegas for $2.3 million.
Las Vegas Strip resorts slow to welcome Alexa, Google Home Hub
Alexa, where are you? Smart home and hospitality technology was big at CES in early January. Amazon and Google promoted their voice-activated speakers Alexa and Google Home Hub. Hospitality executives have called the speakers the industry’s future. Yet for all the hype, the revolution is unfolding at a cautious pace on the Strip as well as in other major U.S. hospitality markets. Hotels are focusing their consumer-facing technology investments on adding streaming capabilities, like Netflix, and enhancing their mobile apps, a December report by Hospitality Technology showed. Voice-enabled technology is 10th on that priority list.
What is MGM 2020
MGM Resorts International announced its MGM 2020 plan in January, The plan would improve cash flow by $200 million annually by the end of 2020 and an additional $100 million by the end of 2021. 1,070 jobs were cut as part of the cost-cutting initiative. 881 of those were Las Vegas employees, mostly in management or mid-management positions. Jim Murren
What is MGM 2020
MGM Resorts International announced its MGM 2020 plan in January, The plan would improve cash flow by $200 million annually by the end of 2020 and an additional $100 million by the end of 2021. 1,070 jobs were cut as part of the cost-cutting initiative. 881 of those were Las Vegas employees, mostly in management or mid-management positions. Jim Murren
Find next-level experience
One minute, you’re just trimming hedges and shooting the breeze with your neighbor. But then he brings up Vegas and you’re thinking about the incredible meals, world-class hotels, pools inside of pools and unparalleled entertainment. You’re thinking about iconic artist residencies like Aerosmith. Priorities take shape. Vegas first, lawn and everything else, second. Just like that, Vegas Changes Everything. (Visti Las Vegas/Youtube)
Vegas Changes Everything
A weekend getaway is nice for anyone, but a weekend getaway in Vegas ... that’s a next-level experience with shows, clubs, spas and more. With a chance to see iconic artist residencies like Gwen Stefani, you might just find yourself going from pushing your child on a swing, to pushing back a birthday party. See how Vegas Changes Everything. (Visit Las Vegas/YouTube)
THE LATEST