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Old 03-11-2011, 02:24 AM
 
Location: Henderson, NV
7,087 posts, read 8,585,304 times
Reputation: 9978
This is pretty awesome, haha, I'd be in support of this! Vegas airline proposes rolling dice on fares - CNN.com

Hey, why not?!
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Old 03-11-2011, 03:19 AM
 
Location: Silicon Valley
3,683 posts, read 9,822,838 times
Reputation: 3015
Interesting that they state they don't hedge fuel prices. There was a period where Southwest made some very big bets on the direction of fuel prices, and those hedges paid off in the form of much lower fuel costs for around a couple years compared to their competitors.
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Old 03-11-2011, 07:32 PM
 
Location: Ft. Lauderdale, FL
228 posts, read 716,769 times
Reputation: 169
Allegiant can do this because they fly to so few places anyway. I think it's a great idea and if they put it off more power to them.

To the poster above me, yes Southwest bet on fuel prices and now they are getting the best deal of all the carriers, but their ride is going to end soon. Then they will have to find new ways to let you fly for cheap.
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Old 03-12-2011, 07:54 PM
 
16,349 posts, read 30,056,253 times
Reputation: 25378
Quote:
Originally Posted by MediocreButArrogant View Post
Interesting that they state they don't hedge fuel prices. There was a period where Southwest made some very big bets on the direction of fuel prices, and those hedges paid off in the form of much lower fuel costs for around a couple years compared to their competitors.
Two things.

First, you need to be financially stable to be able to purchase hedge contracts. Southwest was generating a lot of cash when they decided to hedge their fuel prices; their competitors were struggling to stay out of bankruptcy.

Second, when you are hedging, you are trying to stabilize your cost position as opposed to "gambling". This allows you to price your product in a way that you are profitable. Three years ago, we were experiencing serious spikes in natural gas prices. In six months, the prices over doubled. We locked in pricing when the prices dropped. We were very happy to lock it in around 0.60 a therm. For a while, it was a great deal. In the past six months, the spot market was 0.48. I am not real happy about it but it beat the possibility of paying over $1.00 per therm.
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Old 03-12-2011, 08:24 PM
 
579 posts, read 992,890 times
Reputation: 371
Allegiant is a scummy airline that was one of if not the first to charge for bags. They also charge you $15 to use their website to book a ticket as well as try to sneak all sorts charges on you as you cash out such as priority boarding and shuttle service.

They are also proposing to charge passengers a carry on bag fee. There is absolutely no way I would trust this airline to charge people in a legit way if someone opted to pay the fuel based price. Allegiant would just scam them in the end or find some reason not to refund any difference if fuel went down.

Multiple times I have tried to book tickets with them and the charge changed while I was booking the flight. I would then go back and look at the prices in another browser and it would show the old price. The last time it happened I called them and they said "The system probably has not updated yet". I think it is a bait and switch scam.

On the route I fly, forced to with them because they are the only ones that fly there, the fares are up 300-500% just in the last few weeks. Fuel is up maybe 35%. How do they justify a 300-500% fare increase because of fuel going up 35%?

IMO Allegiant is the dirtiest airline out there. I can't see how anyone can trust them to do the fuel based charges.
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Old 03-13-2011, 08:42 PM
 
Location: Alamo Heights, TX
395 posts, read 1,076,683 times
Reputation: 157
Quote:
Originally Posted by LVPoker1 View Post
Allegiant is a scummy airline that was one of if not the first to charge for bags. They also charge you $15 to use their website to book a ticket as well as try to sneak all sorts charges on you as you cash out such as priority boarding and shuttle service.
I don't see how charging for bags is scummy. They charge a convince fee to book on the web but not at the airport. Why don't you head down to the airport and book the ticket if you are concerned about the $15 fee?

Quote:
Originally Posted by LVPoker1 View Post
They are also proposing to charge passengers a carry on bag fee. There is absolutely no way I would trust this airline to charge people in a legit way if someone opted to pay the fuel based price. Allegiant would just scam them in the end or find some reason not to refund any difference if fuel went down.
Spirit airlines already charges a carry-on fee. I neglect to see how this makes them a poor airline. In fact when all other airlines were posting record losses, Allegiant was posting profits.
Quote:
Originally Posted by LVPoker1 View Post
Multiple times I have tried to book tickets with them and the charge changed while I was booking the flight. I would then go back and look at the prices in another browser and it would show the old price. The last time it happened I called them and they said "The system probably has not updated yet". I think it is a bait and switch scam.

On the route I fly, forced to with them because they are the only ones that fly there, the fares are up 300-500% just in the last few weeks. Fuel is up maybe 35%. How do they justify a 300-500% fare increase because of fuel going up 35%?

IMO Allegiant is the dirtiest airline out there. I can't see how anyone can trust them to do the fuel based charges.
While I do not fly Allegiant (I fly 100k+ miles per year on United), I neglect to see where you are coming from. This thread just reminded me to book a ticket for my wife to Fresno in May. Just booked the round-trip ticket online for a total of $79 with the web fee of $15. Show me any airline that is even within 2x of that price round trip. Even if we had to check bags the total is way less than any legacy carrier.

As I said, I have never flown Allegiant, but I have sent my wife to Wichita for $100 RT and Fresno a few times for under $80. She carries her bag on (and even if there was a fee we would still book Allegiant because it would still be way, way cheaper) and doesn't pay for a seat assignment.

If you would rather fly a legacy carrier with seat assignments, free baggage (assuming you are an elite member) and first class then do, but don't knock an airline that is catering to the people that rarely fly and not disguising their extra costs.
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