Allegiant Travel, the parent of low-cost leisure carrier Allegiant Air, has raised $90 million from an initial public offering. The Las Vegas-based carrier, whose shares immediately shot up by over 40% after listing on the NASDAQ exchange in early December, says it will use the proceeds to add to its fleet of 22 Boeing MD-80 family.
Allegiant's model is based on low-fare service to warm weather vacation spots such as Las Vegas or Tampa/St Petersburg from 45 smaller communities where there is little or no competition. Allegiant says it has identified another 52 small cities in the USA and Canada as candidates for its service.
Source: Airline Business