Allegiant Travel Company Analysis

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Executive Summary Allegiant Travel Company, parent company of Allegiant Air, is a low-cost airline carrierthat caters exclusively to the leisure traveler. There are currently 980 employees that manage the whole company (allegiantair.com). They are known for their innovative and sustainable business models based on keeping fares low and providing additional services for customers. Throughout the years, Allegiant has been operating by providing one-way tickets to and from its “focus centers” which are destinations as Orlando, St. Petersburg, Phoenix, Los Angeles, Tampa and Las Vegas (mergentonline.com). However, Allegiant Travel Company purchased six Boeing 757s in March 2010 to expand their destinations to cities outside the USA…show more content…
Additionally, we will look at the top managers making the strategic, long-term decisions. Finally, we will be researching their internal company strategies such as human resources, operations, marketing and finance. All of these play a role in determining the health of the company. For the purpose of this analysis, the financial metrics for comparing Allegiant 's performance throughout the past three years and across its industry are the return on investment, return on sales, return on equity, return on assets and operational efficiency. The return on investments evaluates the efficiency of an investment. The return on sales is used to see the company 's operational efficiency. The return on equity states how profitable the company is revealing how much profit a company generates with the investment that the company is receiving form shareholders. The operational efficiency is a condition that explains if the participants are executing the transactions and if they are receiving the services at a price that is fair. All of these metrics will allow us to determine Allegiant 's competitive position. After analyzing the financial position of the company, I will focus on how Allegiant has been fighting several economic forces. These include future prospects for inputs such as labor, fuel,
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