The airline tends to offer lower fares, which requires strict cost control. Part of the airline's lower cost structure included operation of McDonnell Douglas MD-80 jets, which the airline can purchase and refurbish for as little as $4 million. While the aircraft are less fuel-efficient than newer planes, Allegiant was able to purchase used MD-80s outright for one-tenth the cost of a new Boeing 737 although Allegiant has subsequently purchased used Boeing 757-200s, Airbus A319s and Airbus A320s. (The 757s were acquired for its Hawaii service while the Airbus jets were beginning to replace MD-80 aircraft). As of November 2018, however, Allegiant no longer operates any MD-80 aircraft, relying instead on an all-Airbus fleet. Given the low cost of ownership, Allegiant is able to operate its aircraft less (seven flight hours per day on average versus 13 hours per day at JetBlue Airways), which helps keep labor costs lower. Overall, Allegiant operates with 35 full-time workers per plane compared to more than 50 at other carriers. Allegiant schedules their crew members so that they always return to their domicile at the end of the day, thus avoiding the need for hotel rooms which can be a costly expense for airlines.
Air Charter Bahamas Berry Aviation Bighorn Airways Charter Air Transport Choice Airways Contour Aviation Delta Private Jets Eastern Airlines ExcelAire Great Lakes Air Gryphon Airlines IBC Airways JetSuite L-3 Flight International Aviation Miami Air International NetJets Omni Air International Pacific Coast Jet Pentastar Aviation Phoenix Air PlaneSense Presidential Airways Rediske Air Sierra Pacific Airlines Skymax Superior Aviation Swift Air Tailwind Air Service Talkeetna Air Taxi Twin Cities Air Service World Atlantic Airlines XOJET
^ For comparison, fleet ages as of 2018: Southwest, 10.7 years; JetBlue, 9.7 years; Spirit, 5.4 years; WestJet, 9.7 years; Volaris, 4.3 years, Allegiant, 17 years, VivaAerobús, 5.2 years; Sun Country, 14.4 years. Information from Airfleets.net: Southwest, JetBlue, Spirit, WestJet, Volaris, Allegiant, VivaAerobús, Sun Country. (listed airlines from List of largest airlines in North America)
In 2008, jetBlue partnered with Irish flagship carrier Aer Lingus to allow passengers to switch between airlines on a single ticket for flights with connections in New York–JFK or Boston Logan. Unlike traditional codeshare agreements, the companies cannot sell seats on each other's flights, so customers initiate the purchase on one airline's website and then are transferred to the other site to complete the transaction.
In summer 2015, a rash of midair breakdowns drew federal scrutiny. "Before the night was finished on June 25, 2015, five Allegiant flights had been interrupted in four hours, all because different planes had failed in midair," reported the Tampa Bay Times. Since October 2015, the Federal Aviation Administration has kept Allegiant under close supervision. In July 2015, Allegiant Air announced bases would be established at the Asheville Regional Airport and Cincinnati/Northern Kentucky International Airport, becoming the first base at a non-vacation destination.
In 2009, jetBlue announced that it was looking for a new headquarters location, and was considering moving either within the New York City metropolitan area or to the Orlando, Florida area. In April 2009, Helen Marshall, the president of the Borough of Queens, said that the City of New York was trying to keep JetBlue in the city; in January 2010, the CEO of JetBlue, Dave Barger, and Governor of Florida Charlie Crist met in Tallahassee, Florida to discuss a possible move to Orlando. A decision was expected by March 2010, although a move would not happen until 2012, when its lease in the Forest Hills Tower expired.
In March 2011, Allegiant took over charter service to Wendover Airport for Peppermill Casinos, Inc. to shuttle customers to Peppermill's three casinos in West Wendover, Nevada; the Montego Bay Resort, the Rainbow Wendover and the Peppermill Wendover. Allegiant based one 150-seat, MD-80 series jet aircraft in Wendover and more than 20 employees, including maintenance, flight crews and stations personnel.
In 2014, Frontier announced it would be transitioning into an ultra-low cost carrier. Frontier will also cut several flights and jobs at their Denver hub and transition them to different markets. On January 16, 2015 Frontier announced that it will close both its Denver and Milwaukee call centers, laying off 1,300 employees and outsourcing the jobs to call center company, Sitel, which operates a large call center for Frontier in Las Cruces, New Mexico. As part of its transition to an ultra-low-cost airline, Frontier Airlines joined Spirit and Allegiant in June 2015 in removing its toll-free telephone number for customer service.
In the fall of 2001, Allegiant exited bankruptcy and the case was officially closed in early 2002. In March 2002, Allegiant entered into a long-term contract with Harrah's to provide charter services to its casinos in Laughlin and Reno, Nevada. At the same time, the airline acquired its first McDonnell Douglas MD-80 jetliner. From 2002 through 2004, the airline developed its scheduled-service business model. By 2004, Allegiant was flying from 13 small cities to Las Vegas offering bundled air and hotel packages.