Allegiant faces pivotal year as it seizes on AirTran cuts and works toward Hawaii launch

Allegiant Air has entered 2012 poised to capitalise on markets AirTran Airways is exiting following its sale to Southwest Airlines. On some levels Allegiant has benefitted from the capacity reductions fostered by consolidation among US carriers as the combined airlines exit underperforming markets. But as the new opportunities arise for Allegiant, it faces challenges in launching its long-awaited Hawaii services as the timeline to gain government approval for the operations remains a moving target.

The company is not shy about its plans to backfill some markets AirTran is exiting as part of a network overhaul by Southwest. Allegiant executives have stressed that as Southwest continues to digest the AirTran schedule, it creates opportunities for the airline to enter small markets that Southwest has concluded are unviable in the combined AirTran-Southwest network.