Allegiant doesn't fly here, so why is it here?


#1

flightaware.com/live/flight/AAY5113


#2

Airlines are in business to make money. They make money transporting passengers, cargo and sometimes both between two locations. Obviously someone or some group wanted to go to the Laughlin, NV area from Denver.

Perhaps googling Laughlin, NV may give you some insight as to why people want to go there.


#3

There are a number of casinos in Laughlin.

Since Laughlin is somewhat isolated, the casinos there charter planes to fly in people from various cities (at a loss) to come stay in their hotels and blow their savings in their casinos.


#4

Check totalrewards.com/content/tr- … ghlin.html


#5

This… is interesting to know and irony at its best…

This is definitely a Harrah’s thing, so this could probably work at every casino they have, depending on if the demand is there.

It’s interesting and ironic that they are using AAY for this when roughly a decade ago, they were part owners of their own airline, National (ROK). That unfortunately didn’t work out too well for them, so I’m wondering why they are going through AAY to do the same thing they had in house…

BL.


#6

2 reasons:

Allegiant owns a lot of other aircraft and can spread certain fixed costs like dispatch, training, maintenance staff, across the entire airline. When you have your own tiny fleet of 1-2 aircraft your relative fixed costs are much higher.

Secondly, Harrah’s is in the Hotel/Casino running business, not the airline business. Allegiant knows how to run an airline. It’s generally a best practice these days to pay someone else to do what you don’t specialize in.


#7

That’s the whole point. ROK was a fleet of a good 20B752s; not a tiny fleet at all.

Secondly, Harrah’s is in the Hotel/Casino running business, not the airline business. Allegiant knows how to run an airline. It’s generally a best practice these days to pay someone else to do what you don’t specialize in.

Again, they were partners in the airline. Michael Conway was the other co-owner, and he co-founded America West, so it wasn’t that they didn’t know what they were doing.

From Wikipedia:

Hoping to attract more visitors from the East Coast, Harrah’s Entertainment and the former Rio Hotel & Casino, Inc., each contributed $15 million toward the start-up costs of National Airlines in July 1998. Wexford Capital, owners of Republic Airways Holdings also contributed several million to this create this airline.

On May 27, 1999, the airline started service, becoming the third airline in the United States to use the National Airlines name. Michael Conway became President and CEO of the company.

I just find it ironic that they are outsourcing another airline to do the job that they had in house a decade prior…

BL.