Allegiant Air has built a successful business model by connecting secondary markets to leisure destinations such as Hawaii.
But in two months the low-cost carrier, which has posted 45 consecutive profitable quarters, will be down to just two mainland routes to the islands after having as many as 10 at one time. And both those surviving routes — Los Angeles and Las Vegas to Honolulu — are from major markets.
Allegiant, which uses a 223-seat Boeing 757 aircraft, has suspended four Hawaii routes within the last three months. The latest casualties were its weekly service from Boise, Idaho, to Honolulu, which was suspended in March; and weekly Spokane, Wash.-Honolulu service and twice-weekly service from Bellingham, Wash., to both Kahului and Honolulu that all were dropped in April. The Bellingham service was the only nonstop route to Maui that Allegiant had offered from the mainland.
"We weren’t seeing the demand we were hoping to see from that (Bellingham) route (to Honolulu and Kahului), and we have a responsibility to our shareholders with our resources to use them effectively," Allegiant spokeswoman Lindsay Hernquist said.
The Boise and Spokane routes, meanwhile, have been dropped and restored in the past.
Allegiant spokeswoman Jessica Wheeler said there are no definite return dates for those routes put on "hiatus."
The Las Vegas-based carrier has been feeling its way along with Hawaii’s peak and shoulder travel periods since entering the state’s travel market in June 2012 with service from Las Vegas and Fresno, Calif., to Honolulu. Parent company Allegiant Travel Co. is seeking to capitalize on the Hawaii experience by selling full travel packages that provide hotel rooms, rental cars and attraction tickets.
"From the standpoint of percentage of revenue or (seating) capacity in our network, Hawaii is relatively small, but that’s not to say it’s insignificant," Wheeler said. "Hawaii is important to us, and we’re committed to serving Hawaii as a destination. We continue to experiment with seasonality and city pairings to find the right mix for us that’s going to work."
Allegiant is currently flying to Hawaii from six cities, including twice a week from Stockton, Calif.; Fresno; and Scottsdale/Mesa, Ariz., and once a week from Eugene, Ore. Service from all those cities will go on "seasonal hiatus" in early August with no predetermined date to restore service, Hernquist said.
The only two cities that will continue beyond early August will be Las Vegas, which will fluctuate from three to four times a week through Feb. 10, and Los Angeles, which will be available from four to six times a week through that same period.
One additional city, Monterey, Calif., had its service canceled by Allegiant in 2012 before it started due to low demand.
UP IN THE AIR
Allegiant Air has remained nimble since entering the Hawaii market in June 2012 by adding and suspending routes to Honolulu from the mainland, but the carrier’s 10 routes, which include one to Maui, will be down to two by early August:
WHO’S IN
Los Angeles Las Vegas
WHO’S OUT
*Eugene, Ore. *Fresno, Calif. *Scottsdale/Mesa, Ariz. *Stockton, Calif. Bellingham, Wash.-Kahului Bellingham, Wash.-Honolulu Boise, Idaho Spokane, Wash. * Will be put on hiatus in early August
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