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Allegiant Air cancelling profitable contracts for Cuba charters

eTN Staff Writer  Aug 25, 2009

Exercising the 120-day notice period to cancel contracts, Allegiant Travel Company announced today that its Allegiant Air subsidiary has chosen to exit the Cuban family charter programs that it currently flies for five separate charter program sponsors.

In a fairly obscure explanation, Maurice J. Gallagher, Jr., Allegiant Travel Company CEO said, "While our Cuba flying has been and continues to be profitable, these programs are exposing the airline and its people to operational complexity inconsistent with our operating philosophy. Keeping things simple is a key attribute of our business model, and since we are not short of profitable opportunities consistent with operational simplicity, we decided the sensible thing was to remain true to our proven operating philosophy and return our people and aircraft to such efforts."

Allegiant Air has a single aircraft dedicated to its Cuba programs and currently expects to return that aircraft into its scheduled service fleet later this year. Allegiant Air's charter planning team is working closely with the five Cuba program sponsors affected to ensure a smooth transition for all parties.

Allegiant Air cancelling profitable contracts for Cuba charters
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