Orlando Sanford International Airport
- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Route Maps
- Fast Fact Report
- IATA Code
- ICAO Code
- Corporate Address
- Sanford Airport Authority
1200 Red Cleveland Boulevard
Sanford, Florida 32773
- United States of America
- Domestic | International
- Airport Type
- Other airports serving Orlando
- Orlando Executive Airport
Orlando International Airport
- 1830m x 46m
- Airlines currently operating to this airport with scheduled services
- Allegiant Air
National Airlines (US)
TUI Airlines Netherlands
Orlando Sanford International Airport (SFB) is located within the boundaries of the City of Sanford, in the northwestern section of Seminole County, Florida, 18 miles northeast of Orlando. The Sanford Airport Authority is responsible for the operation, maintenance and development of the airport and its facilities. SFB benefits from a unique blend of local government and private investment that makes for a very customer focused airport. The Airport is operated through a public/private partnership between the Sanford Airport Authority and Airports Worldwide. Airports Worldwide has been contracted by the Sanford Airport Authority to manage both the international and domestic terminals, develop additional air service, and provide ground handling and cargo services. This public/private partnership has created service benefits for SFB airline customers and passengers.
Location of Orlando Sanford International Airport, United States of America
Ground Handlers and Cargo Handlers servicing Orlando Sanford International Airport
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Fuel & Oil Suppliers servicing Orlando Sanford International Airport
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135 total articles
18 total articles
Allegiant Air works to take full advantage of lower fuel prices with a major push in off-peak flying
Allegiant Air’s business strategy has always been unique in the US market place – and even globally. Although the company has slightly modified its approach of linking small markets with large leisure destinations during the past couple of years, Allegiant’s business model has emerged as one that seems to withstand cyclicality and other challenges that airlines face.
During 2015 Allegiant has not escaped the unit revenue degradation that has swept through most of the US industry. But its decline stems more from internal factors than Allegiant’s exposure to the US domestic regions enduring the fiercest pricing pressure. Allegiant has opted to tilt its business in a direction to maximise the benefits of lower fuel costs, which show no signs of disappearing in the short to medium term.
Allegiant is steering its business toward off-peak flying, which is driving down unit revenues and margins, but lifting profits. It is a similar move adopted by larger airlines, but Allegiant’s niche business model creates more opportunity for the company to push the envelope on marginal flying.
Although Allegiant Air has encountered its share of challenges in 2015 – labour unrest and some operational issues – its business model arguably is emerging as one of the most watertight, reflected in its 1H2015 earnings growth of 76% to USD119 million and is trading at a P/E ratio of over 33.
Allegiant is facing similar unit revenue degradation that much of the US industry is battling, but for entirely different reasons than domestic competitive capacity increases. Its decreases are driven by a higher mix of off-peak flying, new route introductions and continued growth. The airline’s shift into more mid-size markets is continuing, and the airline is forecasting additional expansion into those types of markets for at least the next couple of years.
The model adopted by Allegiant for the moment seems to be one that is withstanding the changing dynamics in the US domestic market, and despite some internal challenges, the company’s business strategy generates strong sentiment from Wall Street. Allegiant’s earnings multiples are more than triple some US major airlines, and its stock price is among the highest of US publicly traded airlines.
Raleigh-Durham International Airport (RDU) lost its hub status before the onset of the economic downturn and consolidation among the large US major airlines. But during the last few years its traffic levels have remained stable, driven in part by the metro area hosting numerous educational and research facilities that help to sustain a certain level of origin and destination traffic.
The airport is adding new airlines in 2015 including Allegiant and Alaska Airlines, expanding Raleigh-Durham’s (RDU) offering to the US West Coast and Florida. United is also resuming service to Denver, and Southwest is adding service to Dallas Love Field. All of this bodes well for Raleigh-Durham to maintain or grow its current passenger levels.
Undoubtedly the ultimate prize for Raleigh-Durham is additional long-haul flights beyond its current service to London Heathrow. But similar to other US non-hub airports, Raleigh-Durham understands the competition to gain additional service is fierce, and securing new long-haul routes is a lengthy and challenging process.
Austin-Bergstrom Airport capped off 2014 by recording 7% passenger growth after reaching a milestone in Mar-2014 with the debut of its first trans-Atlantic service by British Airways on flights to London Heathrow.
Although it is not a hub for any major airline, Austin does have numerous favourable elements that make it ripe for continued growth, including a strong economy, an unemployment rate lower than the US national average and a relatively young population.
Obviously the airport aims to expand its long-haul offerings; but that could prove difficult in the short term given weak macroeconomic conditions in some trans-Atlantic regions. But during 2015 Austin is regaining transborder flights from Air Canada with flights to Toronto, while US domestic airlines also plan some expansion at the airport.
US niche airline and travel company Allegiant capped off CY2014 by taking a USD43 million write down on its fleet of six Boeing 757s, which created additional noise in its results that were also affected by training expense that created cost headwinds throughout most of CY2014.
Despite those challenges, Allegiant recorded strong top-line revenue growth in 4Q2014 and CY2014 as unit costs were pressured by training expense during the year. But at the same time the company is keeping an eye toward shareholder returns by deciding to issue a recurring dividend for each quarter in CY2015, and still retains roughly USD86 million in share repurchase authority.
After facing continuing cost headwinds in 1Q2015, Allegiant’s cost pressure should ease throughout the remainder of the year as it seems to be focussed on domestic expansion for the foreseeable future.
Allegiant Air is making some subtle network shifts as consolidation in the US airline industry has made operating from mid-size hubs more viable for the airline. During 2014 it has rapidly built up Cincinnati, as Delta has pulled down service at its smaller hub to maximise its network utility.
During 2015 Allegiant is introducing flights from other mid-size markets as it concludes those larger regions may not require as much deep discounting as some smaller markets within its network. The airline is also using its Airbus narrowbodies to increase its network breadth by placing those jets in markets unviable for its MD-80s, which still comprise the majority of its fleet.
Allegiant’s moves show that even as the US market may appear to have reached a steady state of maturity, market dynamics within that framework are changing, albeit at less dramatic levels.