Allegiant Air’s longtime CEO stepping aside

Allegiant Air’s longtime boss, Maurice “Maury” Gallagher, is stepping aside after growing the carrier from almost nothing into a consistent money-maker that often faces no direct competition in the skies.

Las Vegas-based Allegiant Travel Co., the airline’s parent, announced Monday that Gallagher, chairman and CEO, will become executive chairman of the board and that President John Redmond will take on the additional role of chief executive officer.

The change takes effect June 1.

A former casino executive, Redmond has been president of Allegiant since 2016. He has also been a board member since 2007, except for a one-year hiatus in 2013.

Gallagher said in a news release that “no one understands the vision and strategic direction of Allegiant better than John,” adding the transition “formalizes title changes that have been working in practice for the last several years.”

Redmond said in the release that he “could not be more excited about the opportunities ahead.”

“The strategy, model, and plan are firmly in place and combined with our exceptional management team, there is no limit to what we can accomplish,” he added.

The news release noted that Gallagher is Allegiant’s largest shareholder and “will continue to remain actively involved in the strategic direction of the company.”

Neither Gallagher nor Redmond was available for an interview Monday, Allegiant spokeswoman Sonya Padgett said.

Profitable run

Allegiant, an ultra-low-cost carrier, is known for flying from small, underserved cities to warm-weather vacation spots, usually without competition on its routes.

It booked 17 consecutive profitable years before the pandemic hit, reporting a loss of $184.1 million in 2020, but it returned to the black last year with $151.9 million in profit as air travel rebounded from the turmoil of the coronavirus outbreak.

Founded in 1997 with a different business strategy and management team, Allegiant went bankrupt in 2000, the company has said in securities filings.

Gallagher, who held debt in the airline, became its majority owner as part of a reorganization, and the carrier emerged from bankruptcy in 2002.

It had only one airplane when Gallagher took charge, the company noted on Monday. It now boasts more than 110 aircraft and operates 600-plus routes across the U.S.

According to a presentation it made last summer, more than 75 percent of Allegiant’s routes have no competition.

Allegiant announced last month that it was buying dozens of Boeing jets as it expands beyond its all-Airbus fleet and history of purchasing used planes. The deal calls for Allegiant to acquire 50 new Boeing 737 MAX aircraft, with options to purchase 50 more, and for deliveries to start next year.

Before it transitioned to an all-Airbus fleet in recent years, Allegiant mostly flew older, hand-me-down McDonnell Douglas MD-80s.

Arcades and real estate

Gallagher also had a history of side ventures over the years, including a roadside Las Vegas wedding chapel and businesses that inked millions of dollars in deals with his airline, including a race-car team and a television game show filmed on Allegiant flights.

Gallagher’s son, Spencer, raced for his dad’s team for years and announced his retirement from racing in fall 2018 at age 28.

Under the outgoing boss’ leadership, Allegiant also ventured outside aviation with Allegiant-branded arcades, golf course software, and, most notably, real estate development.

Allegiant broke ground in 2019 on a riverfront project in Port Charlotte, Florida called Sunseeker Resort Charlotte Harbor.

The resort — slated to feature 500-plus hotel rooms, more than 180 extended-stay suites, 55,000 square feet of conference space, and 19 restaurants and bars — is expected to open in early 2023.

Allegiant unveiled in October that it obtained a $350 million loan for the project.

Contact Eli Segall at esegall@reviewjournal.com or 702-383-0342. Follow @eli_segall on Twitter.