LAS VEGAS, Sept. 21 /PRNewswire/ -- Allegiant (Nasdaq: ALGT), announced that it has entered into a three-year, fixed-fee agreement with Peppermill Casinos, Inc. Under the agreement, Allegiant will provide air transportation for the casino company's three Wendover, Nev., properties. Allegiant expects to generate more than $20 million in revenue over the three-year term of the agreement. The agreement is subject to earlier termination by either party.
"We're pleased to establish a new partnership with the Peppermill Resorts," Andrew C. Levy, Allegiant President, said. "We are confident Peppermill customers will be pleased with the level of service and reliability our company will provide."
"The Peppermill Resorts at Wendover are pleased to partner with Allegiant in providing flight packages," John W. Spillman, Marketing Director for Peppermill Resorts at Wendover, commented. "We are excited to work with a company which shares many of the same core values with us and look forward to the name brand recognition that Allegiant will provide to our program."
By March 1, 2011, Allegiant will base one 150-seat, MD-80 series jet aircraft in Wendover to provide charter services to a number of small cities throughout the United States for the Peppermill's three Wendover resort properties: Montego Bay Casino Resort, Rainbow & Hotel Casino and Peppermill Hotel & Casino. The travel company will establish a base in Wendover with more than 20 employees, including maintenance, flight crews and stations personnel.
Other charter and scheduled services will be unaffected by the agreement announced today. In accordance with industry practices, Peppermill will bear the fuel risk for Allegiant flights performed under these agreements.
Resorts at Wendover's Flight Program is in its sixth year of operation and serves over 60 cities with flight packages . Additional information about the Peppermill Resorts at Wendover is available at www.wendoverfun.com.
About the companies
Las Vegas based Allegiant Travel Company (Nasdaq: ALGT), is focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Phoenix, Los Angeles, Orlando, Fla. Tampa/St. Petersburg, Fla. and Fort Lauderdale, Fla. Through its subsidiary, Allegiant Air, the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. In 2010, Allegiant was ranked number one for low-cost carriers in Aviation Week's Top Performing Airline study and ranked 25 on FORTUNE magazine's Fastest-Growing Companies list. ALGT/G
The Peppermill Resorts at Wendover are part of the Peppermill Resorts Group and are located on the Nevada/Utah boarder near the famed Bonneville Salt Flats. Comprised of three casinos the Peppermill Resorts at Wendover has nearly 1,400 rooms and suites, over 2,700 slots, 100 table games, eight restaurants, three race & sports books and two live poker rooms.
For further information please visit the company's investor web site: http://ir.allegiant.com
Reference to the Company's web site above does not constitute incorporation of any of the information thereon into this press release.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding expected revenues over the course of the charter agreement.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.