As first reported by Aero Crew News, Allegiant is eliminating its Austin base. The airline currently operates from the South Terminal, separate from the main terminal building, at Austin-Bergstrom International Airport (AUS).
BREAKING
— Aero Crew News (@AeroCrewNews) June 22, 2024
Allegiant will cease base operations at AUS effective January 7th.
Source: memo obtained by ACN. pic.twitter.com/Zdk3yzGK1H
With the Austin airport expanding by adding a new concourse, the South Terminal is going to be demolished to make way for the new improvements. A lawsuit by the South Terminal operator was settled to the tune of $88 million last year to make way for the demolition.
The South Terminal is a stand-alone terminal building that isn’t connected to the main Barbara Jordan Terminal. Ultra-low-cost carriers Frontier and Allegiant use the South Terminal largely because of its lower landing fees. The demolition of the terminal will make way for new midfield taxi lanes as part of the overall expansion at the airport.
Allegiant opened its Austin base back in 2021 with a $75 million dollar investment that brought in 89 high-wage jobs. The airline houses three Airbus A320 aircraft in Austin.
Allegiant currently operates 18 routes from Austin and many of these will likely be cut as part of the elimination of the base. Flights to and from other Allegiant bases such as Las Vegas (LAS), Asheville (AVL), Santa Ana/Orange County (SNA), Orlando-Sanford (SFB), and Sarasota/Bradenton (SBQ) are likely to remain. No route announcements have been made at the time of writing.
Summary
Allegiant is planning on eliminating its Austin base based on a memo that has been distributed to employees. An official announcement from the airline has not been made but expect many of its routes from Austin to be cut as a result. The airline will have to move any remaining operations to the Barbara Jordan Terminal due to the impending demolition of the South Terminal at AUS.
AUS airport also didn’t exactly make it easy for them. That whole South Terminal was terribly inconvenient especially for people coming to AUS to visit, taking a ridiculous journey to and from rental cars and many hotels not picking up there. When Spirit was planning to start AUS, the airport pretty much said “You WILL be in the South Terminal, that’s where ULCCs go.” Spirit said “Then we WILL fly to another city instead!” Somehow a gate opened up in the Barbara Jordan Terminal. I don’t know if AUS airport authority is one of those that thinks it can be choosy about new service (like BNA) but one would think every enplanement matters…..
There is a reason that the South Terminal has much lower landing fees, the inconvenience is part of it. With how over capacity the Barbara Jordan Terminal is it was always going to be difficult to absorb the existing operations of Allegiant and Frontier. Assuming Allegiant just decided they didn’t want to pay the fees and pulled up stakes, I doubt the airport is mad as they can barely find a place to park planes now.