Abstract

The case is about US-based Airline Allegiant Air (ALGT) which, through its unique low-cost business model, became one of the most profitable airlines in the country. It discusses some of the strategies adopted by the company that made it highly successful.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyse the business model and operating strategies adopted by Allegiant
• identify the sources of competitive advantage for Allegiant and the differentiating strategy it adopted
• Understand how the company handled the various problems and delivered consistent performance.

Keywords

Business Model, Pricing Strategy, Employee Attrition, Growth in Profit Margins, Low cost airlines No frills, Cost control