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Allegiant's Hawaii move a good one, but not until next year

While it remains to be seen from which US domestic points Allegiant will serve the Hawaii market, the LCC assured investors yesterday that, rather than being an anomaly to its normal modus operandi, the Hawaii service fits perfectly into the strategy that has made it record profits and margins and has set it so far apart of its legacy and low-cost brethren as to put it in its own category. Even so, it faces some operational challenges to get the operation up and running and at least one analysts expects that it will be very costly this year with revenues not coming until next year.

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