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Allegiant takes a conservative approach to Mexico as its still works to learn nuances of Hawaii

Analysis

After experiencing challenges in deploying its business model from the US mainland to Hawaii, conservative is the key word underpinning Allegiant Air's strategy to expand into the Mexican market, which will appear in the carrier's route map in Jun-2014 when it deploys flights to Mexico from its largest base and headquarters of Las Vegas.

Mexico has been on Allegiant's radar even before the carrier first tabled plans to introduce service to Hawaii in 2010 and finally launched its Boeing 757-operated flights from the US mainland to Hawaii in 2012. As far back as 2008 Allegiant mentioned Cabo San Lucas/Los Cabos, Puerto Vallarta and Cancun as potential destinations that would fit its model of introducing service from smaller US markets to large leisure markets.

Allegiant also launched its Hawaii platform from Las Vegas and still operates two weekly flights on the pairing even as it is adjusting capacity in some of the smaller markets it serves from Hawaii as filling the 217-seat aircraft (check this) has proven to be a challenge.

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