Latest news with #AllegiantAirlines
Forbes
2 days ago
- Business
- Forbes
Fast-Growing Avelo Airlines Cancels Its West Coast Service
Avelo Airlines takes off with first flight between Burbank and Santa Rosa at Hollywood Burbank ... More Airport on April 28, 2021 in Burbank, California. (Photo byfor Avelo Air) Avelo Airlines appears to be in trouble. The four-year-old domestic low-fare airline this week announced it is closing its West Coast base at Burbank Airport (BUR) and will soon be shutting down its West Coast services. It gives me no pleasure to write these words, as I was literally there at the beginning. In April 2021, I was a passenger on Avelo Flight 101, from Burbank to Charles M. Schulz–Sonoma County Airport (STS) in Sonoma, California. The crowd loved the first flight to California wine company, and the enthusiasm from the pilots, flight attendants, employees and Avelo's founder and CEO Andrew Levy, who was onboard. The start-up was the first new airline in the United States in 15 years. Avelo began with three used Boeing 737-800 aircraft; today it has 21. Until now, Avelo's startup story was inspirational. That first flight on April 28, 2021, was deep within the COVID-19 pandemic that pounded the airline industry. To launch the new carrier, Avelo employees worked remotely from Florida, Texas, California, New York, and other locations via Microsoft Teams. Many did have years of airline experience, like CEO Andrew Levy, co-founder and former president of low-cost carrier Allegiant Airlines, and former chief financial officer of United. But many others were new to the airline industry. To train dozens of new flight attendants in safety and other critical on-board skills, Avelo created NBA-like COVID-free 'bubbles' so each new class could be quarantined together. Avelo Airlines takes off with first flight between Burbank and Santa Rosa at Hollywood Burbank ... More Airport on April 28, 2021 in Burbank, California. (Photo byfor Avelo Air) Why launch during a pandemic? At the time, CEO Levy said, 'Demand is coming back quickly.' And according to a July 9, 2025, Avelo press release, 'Avelo has flown more than 7.4 million Customers on nearly 60,000 flights. Today Avelo serves 53 cities spanning 21 states and Puerto Rico, as well as three international destinations: Jamaica, Mexico and the Dominican Republic.' Avelo recently announced it is extending its East Coast flight schedule through mid-February 2026, with one way-fares starting at $37. But this week CEO Levy announced, 'Avelo is closing its base at Hollywood Burbank Airport (BUR) later this year. On August 12, 2025, we will reduce our BUR operation to one aircraft before exiting the remaining aircraft on December 2, 2025, and closing the base. 'This was not an easy decision. Our company's deepest operational roots are in BUR, having launched our first flight there over four years ago during the COVID pandemic. There is rarely one singular reason why decisions like this are made, and this one is no different. We believe the continuation of service from BUR in the current operating environment will not deliver adequate financial returns in a highly competitive backdrop. We intend to redeploy these BUR aircraft to business areas where we see more efficient longer-term growth prospects, while also building depth and breadth to our East Coast operation.' Andrew Levy, chairman and chief executive officer of Avelo Airlines, waves as he boards the ... More inaugural flight of Avelo Airlines from Hollywood Burbank Airport (BUR) to Charles M. Schulz-Sonoma County Airport in Santa Rosa (STS) on April 28, 2021 in Burbank, California. - Avelo Airlines begins low-cost carrier service with a fleet of Boeing Co. 737 aircraft as leisure travel resumes after the Covid-19 pandemic stunned the global airline industry. (Photo by PATRICK T. FALLON/AFP via Getty Images) Levy, who was not available for an interview, concluded, 'We appreciate our Crewmembers in California for their hard work and dedication, and all will be given the opportunity to transfer to another Avelo base. We are deeply grateful for the support from the local community and from our business partners. Customers who have flights booked can visit the Manage Trips section of our website to cancel their flight and receive a refund.' Avelo added 17% additional capacity in 2025. Unfortunately, in 2025 domestic leisure air travel demand has dropped, with fares cut, flights cut, and now airlines like Avelo cutting service. As David Neeleman, CEO of competitive low-cost carrier Breeze Airways, said in March "Your first needs are food and shelter. And then we're a little bit down the list of expenditures. If you don't have a job, you're not going to go buy an airline ticket." Credit and debit card spending on airline purchases fell 7.2% in February 2025, while the stocks of many publicly traded US airlines (Avelo is private) fell. American Airlines is down 29%, UAL is down 9%, and Delta is down 8%. Still, such well-established carriers have significant cash reserves and can even go to the bond market to raise money. But according to Cranky Flier Avelo Airlines had just $23 million in cash and short-term investments at the end of 2024. As the publication noted, 'With demand tanking, you have to be very concerned about the future of your business if you're running Avelo.' Avelo's financial problems led to what proved a controversial move by the airline. It accepted government contracts with ICE to fly deportation flights for undocumented migrants. Student Camila Torres joins with well over 150 other residents to protest Avelo Airlines at Tweed ... More New Haven Regional Airport in New Haven, Conn., on Friday April 17, 2025. Avelo is contracted with ICE to carry out Trump Administration deportation flights. (Christian Abraham/Connecticut Post via Getty Images) The backlash against the flights, which began out of Mesa, Arizona, in May, was fierce. More than 19,000 people in Connecticut signed a petition pledging not to fly Avelo, while local officials threatened to revoke financial incentives provided to the airline. A New Hampshire state representative raised money to put up billboards reading 'Does your vacation support their deportation?' which devolved into a court battle. Even the New York Times attacked the beleagured airline for 'aiding Trump's deportation campaign,' helpfully pointing out that Avelo serves 'liberal cities on the coasts.' Has the low-cost airline built enough good will with its low-cost flight to popular destinations to survive these financial and reputational reverses? As a paying customer on flights to wine country, I will certainly miss Avelo's on-time service out of Burbank. But refocusing on the denser Eastern seaboard routes, including its popular Florida flights, may be enough to keep this low-cost contender going. Orlando, Florida USA Avelo Airlines, Boeing 737-800 aircraft, taxiing to the gate, after arriving ... More from Wilmington, Delaware.
Bloomberg
07-07-2025
- Business
- Bloomberg
Blackstone Said to Agree $200 Million Deal for Allegiant Resort
By and Mary Schlangenstein Save Blackstone Inc. has agreed to purchase Allegiant Travel Co. 's Sunseeker Resort for about $200 million, far less than the $720 million that the parent of Allegiant Airlines spent building the beleaguered retreat, according to people familiar with the matter. A deal for Sunseeker could be announced as soon as Monday, said the people, who asked to not be identified because the details are private. Bloomberg News first reported that Blackstone was in talks to buy the resort in June.
Bloomberg
13-06-2025
- Business
- Bloomberg
Blackstone Said to Be in Talks to Buy Embattled Allegiant Resort
By , Mary Schlangenstein, and Ryan Gould Save Blackstone Inc. is in talks to purchase Allegiant Travel Co.'s Sunseeker Resort, moving the parent of Allegiant Airlines closer to shedding the beleaguered retreat that had been a drag on earnings, according to people with knowledge of the matter. The two companies are still negotiating and talks could fall apart, said the people, who asked not to be identified because the information isn't public. It wasn't immediately clear what price is being discussed.
Yahoo
07-06-2025
- Yahoo
Person who wrote bomb threat on Florida flight sought by FBI
TAMPA, Fla. (WFLA) — The FBI Tampa Field Office is searching for a passenger who seemingly wrote a bomb threat on an Allegiant flight at Florida's St. Pete-Clearwater International Airport. Investigators said the threat was found on Allegiant Airlines Flight #2006's lavatory door on April 25. The flight was departing St. Pete-Clearwater Airport and headed to Cincinnati. The crew discovered the threat while the plane was taxiing from the gate before departure. The person wrote, 'Bomb on flight check cargo. All Allegiant flight.' (FBI Tampa) The plane was evacuated but no device was found after an extensive search. Anyone with information about the incident is asked to call the FBI's Tampa Field Office at (813) 253-1000. You can also submit a tip online at Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
06-06-2025
- Yahoo
Photo of bomb threat found on Allegiant flight at PIE released, FBI continues search for suspect
The Brief The FBI is seeking public assistance in identifying the person behind a bomb threat on an Allegiant flight at St. Pete-Clearwater International Airport. The FBI's Tampa Field Office released a photo of the bomb threat, which was found written on a lavatory door on an Allegiant Airlines flight on April 25. Operations at the airport were shut down for hours that night after the incident. ST. PETERSBURG, Fla. - More than a month after an Allegiant Airlines flight attendant found a bomb threat just before taking off from St. Pete-Clearwater International Airport, the FBI is continuing to search for the person responsible. The FBI's Tampa Field Office released a photo of the bomb threat, which was found written on a lavatory door on an Allegiant Airlines flight on April 25. It comes as they seek the public's assistance in finding the person who wrote it. Follow FOX 13 on YouTube The backstory Allegiant passenger onboard flight #2006, which was departing PIE, headed to Cincinnati, Ohio. But as the plane was taxiing from the gate just before departing, a flight attendant found the message on the lavatory door. The pilot, then, immediately stopped the plane and helped work to evacuate passengers, authorities said. The passengers were quickly deplaned, and the Pinellas County Sheriff's Office swarmed the airport and spent hours that night searching multiple flights for anything suspicious. Officials said at the time, nothing was found. RELATED: Allegiant flight attendant finds bomb threat just before St. Pete-Clearwater International departure: Sheriff Investigators saidthe flight landed at the airport about two hours prior to the incident from Cincinnati and was scheduled to depart PIE and head back that same evening with about 170 passengers. What you can do To submit a tip to the FBI, click here. The Source The information in this story was released by the FBI. It also contains details from previous FOX 13 News reports. STAY CONNECTED WITH FOX 13 TAMPA: Download the FOX Local app for your smart TV Download FOX Local mobile app:Apple |Android Download the FOX 13 News app for breaking news alerts, latest headlines Download the SkyTower Radar app Sign up for FOX 13's daily newsletter
