Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Allegiant Travel CO | a2016q28-kex991.htm |
| 8-K - FORM 8-K - Allegiant Travel CO | earningsreleaseq220168-k.htm |
Management
Presentation
July 2016
Forward looking statements
2
This presentation as well as oral statements made by officers or directors of Allegiant Travel
Company, its advisors and affiliates (collectively or separately, the "Company“) will contain forward-
looking statements that are only predictions and involve risks and uncertainties. Forward-looking
statements may include, among others, references to future performance and any comments
about our strategic plans. There are many risk factors that could prevent us from achieving our
goals and cause the underlying assumptions of these forward-looking statements, and our actual
results, to differ materially from those expressed in, or implied by, our forward-looking statements.
These risk factors and others are more fully discussed in our filings with the Securities and
Exchange Commission. Any forward-looking statements are based on information available to us
today and we undertake no obligation to update publicly any forward-looking statements, whether as
a result of future events, new information or otherwise. The Company cautions users of this
presentation not to place undue reliance on forward looking statements, which may be based on
assumptions and anticipated events that do not materialize.
New Airbus Addition
Purchasing 12 new A320 aircraft from Airbus
– End of line
– Current engine option – CFM – matches existing fleet
– Small portion of the fleet – high commonality with existing fleet
Accelerating the MD-80 retirement to 2019
– Getting more difficult to support
– Summer reliability challenges
Is this the last of new aircraft?
– Confident in ability to source future aircraft in used market
– Now have 77 Airbus aircraft in service or committed for future delivery
– Unique transaction/opportunity for end of line aircraft
3
New fleet plan
4
4
48
38
13
17
22
33
35
16
21
35 52
10 12
12
0
20
40
60
80
100
2016E 2017E 2018E 2019E
Expected fleet
End of period
B757 MD-80 A319 Used A320 New A320
85
91 93
99
Business model is still intact
Able to maintain low utilization
– Before transaction, expected all Airbus fleet to fly average 6 to 7 hours
per day
– After transaction, still expect all Airbus fleet to fly average of 6 to 7 hours
per day
Configuration with additional seats – 186 seats in new aircraft
New aircraft - able to maintain low costs
– Lower fuel burn than used A320s – 5-7% more efficient
– Similar monthly depreciation to used A320s because of longer useful life
– Maintenance honeymoon
Favorable financing opportunities – Cost of financing at all time low!
5
Aircraft cost per seat
Aircraft comparison
$20
$18 $16 $14
$5
$6
$6
$6
$12
$10
$9
$8
MD-80 - 166 seats A319 - 156 seats A320 Used - 177 seats A320 New - 186 seats
6
Ownership includes depreciation & amortization + aircraft rent
Maintenance is based on historical maintenance costs
A320 new – estimated based on management assumptions
* - Ex fuel/total aircraft costs assume constant cost for labor and other by aircraft type - $36/Seat
$37
$31
$28
Ex fuel cost* = $53
Fuel cost = $20
Total MD-80* = $73
Ex fuel cost* = $51
Fuel cost = $16
Total A320 used* = $67
Ex fuel cost* = $51
Fuel cost = $14
Total A320 new* = $64
$34
Ex fuel cost* = $52
Fuel cost = $18
Total A319* = $70
Fuel Ownership Maintenance
Utilization levels in existing network
0
2
4
6
8
10
12
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75
Bl
o
c
k
h
o
u
rs
p
e
r
A
C
p
e
r
d
a
y
Aircraft line of flying
2016 average utilization by daily aircraft line of
flying
7
Does not include 757s and assumes balance of fleet is used as spares
Expected utilization levels for current fleet in 2016
10 lines of flying avg 11 hours a day
28 lines of flying avg 8 hours a day
28 lines of flying avg 6 hours a day
10 lines of flying avg 3 hours a day
Expected growth during replacement
Expect scheduled ASMs +5 to 10% per year during replacement period
Expect scheduled ASMs +10 to 15% per year after replacement period
8
Replacement period = MD-80 replacement period to take place between 2017 and 2019