Allegiant Air deals part of strategic goal to reach larger markets
Allegiant Air’s recent moves including a naming rights deal with the Raiders and the under-construction Las Vegas stadium are hallmarks of the Las Vegas-based airline’s efforts to burnish its brand and extend its reach to larger markets, the company’s president and CEO said Monday.
The stadium sponsorship deal marks the first of its kind for a ultra-low-cost airline, but it’s far from Allegiant’s only venture into the sports marketing world. Allegiant jumped into the realm via a sponsorship deal with NASCAR in 2016 and then last year became the domestic airline partner for the NHL’s Golden Knights, adding its name to the home ice at T-Mobile Arena, and struck a deal to become the official carrier for minor league baseball.
The foray is part of a strategic goal to help build its brand in larger markets, according to Allegiant President and CEO Maurice Gallagher Jr.
“Bigger cities are a tougher place for us to go,” Gallagher said, speaking Monday at the 24th annual International Aviation Forecast Summit at Encore Las Vegas. “We’re kind of stepping up our game.”
Allegiant’s fleet of 86 aircraft served 14.3 million passengers last year, including 1.2 million Las Vegas-related customers, and generated $1.7 billion in total revenue in 2018.
The stadium naming rights deal for the $1.9 billion, 65,000-seat indoor stadium — a pact believed to be for $20 million to $25 million per year for up to 30 years, may not be the last similar venture for the 22-year-old airline, as they also filed to trademark “Allegiant Arena” in June.
Allegiant called that filing a move to protect the company name for possible future use, with no arena naming rights deal imminent.
With the stadium naming rights deal set to advertise the airline during Raiders home games against opposing teams from major markets such as New York, Los Angeles and Philadelphia, Gallagher is banking on the newfound exposure to attract customers flying outside of business purposes.
“It’s all a long-term strategic effort,” he said. “Not only to fly people from A to B, but to have that customer to think of us when they think leisure travel.”
Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on Twitter.
