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Allegiant touts Orlando performance as Frontier continues its expansion from the region

Analysis

Low-fare, low frequency carrier Allegiant Air remains bullish over the performance of one of its largest and oldest bases at Orlando Sanford International Airport even as Frontier Airlines is targeting similar markets from nearby Orlando International Airport. While Allegiant's focus during the last couple of years has been its highly publicised launch of service to Hawaii, the carrier stressed during 2Q2012 its operating margin in Orlando improved significantly despite a 30% increase in departures year-over-year. For Frontier, Orlando has become a key area in its network as the carrier has developed a point-to-point strategy during the last year to help lift its revenues.

Executives at Allegiant recently stated the carrier plans more growth from Orlando, with an expected increase in departures during 2H2012 of 20%. Based on markets published by Allegiant as of 20-Aug-2012 the carrier by year-end will serve approximately 47 destinations from Orlando, which is two more than the 45 operated from Allegiant's Las Vegas base, the carrier's largest in terms of seats on offer.

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