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Allegiant Air works to exploit opportunities created by consolidation in medium sized markets

Analysis

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.

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