LAS VEGAS, April 21, 2020 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) announced today an agreement with
the U.S. Department of the Treasury to receive $171.9 million in emergency relief under the
Coronavirus Aid, Relief and Economic Security (CARES) Act. The
Payroll Support Program (PSP) funds are targeted to support team
member salaries and benefits for Allegiant's 4,500-member
workforce.
"The Payroll Support Program recognizes the essential role our
team members play in our country's air travel infrastructure," said
Maurice J. Gallagher, Jr., Allegiant
chairman and CEO. "Their dedication in the face of the
unprecedented crisis brought by the COVID-19 outbreak has been
tremendous – and their continued work will be critical to our
nation's successful recovery in the months to come. On behalf
of our entire team, I'd like to applaud the work of the
administration, Treasury and the Department of Transportation, our
hometown Nevada delegation,
leadership of both houses of Congress and the Aviation
Subcommittees for both the Senate and House for taking swift,
bipartisan action to protect the jobs of our frontline team
members. We thank you for your support and look forward to working
with you to ensure Americans can once again be together, connecting
with family and friends and conducting the business of our great
nation."
The PSP is expected to provide Allegiant with $171.9 million in funding and will cover
approximately 76 percent of budgeted payroll and benefit costs
through September 30, 2020. Of that
funding, $21 million will be in the
form of a 10-year term, low-interest loan, to be repaid at any time
prior to maturity at par. Under the loan, the company will issue
warrants to the U.S. Department of the Treasury to purchase 25,890
shares of common stock with a cash settlement right at the
company's option.
"We are incredibly grateful to the partners who made this
critical support possible, but also want to thank our team members,
who have stepped up in force to support the company during this
unprecedented time," said Greg
Anderson, chief financial officer. "So far, more than 1,100
team members – 25 percent of our workforce - are already
participating in a voluntary short-term leave program or voluntary
pay reductions. Further participation will go a long way to
maximize the payroll assistance funds and extend their impact as
long as possible. We appreciate their action and know this shared
sacrifice will be crucial to weathering the storm. With so much
uncertainty regarding the arc of the coronavirus outbreak and when
demand for travel will return, we believe the airlines maintaining
the most flexibility will be best positioned to emerge from this
crisis even stronger."
Allegiant Travel Company
Las
Vegas-based Allegiant (NASDAQ: ALGT) is an integrated travel
company with an airline at its heart, focused on connecting
customers with premier leisure experiences - from vacations to
hometown family entertainment. Since 1999, Allegiant Air has linked
travelers in small-to-medium cities to world-class vacation
destinations with all-nonstop flights and industry-low average
fares. Today, Allegiant's all-Airbus fleet serves communities
across the nation, with base airfares less than half the cost of
the average domestic roundtrip ticket. For more information, visit
us at Allegiant.com. Media information, including photos, is
available at http://gofly.us/iiFa303wrtF
Media Contact
Phone: 702-800-2020
Email: mediarelations@allegiantair.com
Investor Inquiries
Email:
ir@allegiantair.com
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SOURCE Allegiant Travel Company