Allegiant Moves from Lansing to Grand Rapids, Cites Less Competition, More $$$

(MoneyWatch)  Allegiant Air will be leaving Capital Region International Airport in Lansing, Mich. Jan. 31 and begin its new service to Florida from Gerald R. Ford International Airport in Grand Rapids on Feb. 4.

But why would an airline decide to move only about 68 miles west of their present airport to a more suburban market?

Allegiant spokeswoman Tyri Squyres said the Las Vegas-based, low-cost airline felt lost in the Detroit competition -- especially from Southwest and AirTran. But since there were no low-cost flights to Florida from Grand Rapids, Allegiant decided to make the switch.

"This will allow us to serve a greater part of the state of Michigan, and at the same time move farther away from the competitive influences of Detroit," she told the Lansing State Journal.
But, of course, there's more to it. The Muskegon Chronicle reported that the Grand Rapids airport is also waiving Allegiant's fees for a year, saving the airline around $1 million. Airport executive director James Koslosky also agreed to spend $250,000 to market the flights and new fares.

With that kind of welcome, I think many airlines might consider moving.

Allegiant will offer three flights a week to Orlando and four flights a week to Tampa Bay/St. Petersburg, including a $89 one-way ticket if booked on its Web site. The airline said that it would consider adding more destinations if demand is strong.

Photo courtesy of Allegiant Air