One example of a smaller carrier is Allegiant Air. Allegiant began their operations by purchasing cheaper, older, used, and inefficient MD-80 series aircraft at the cheap cost of 4 million per aircraft (Allegiant, 2013). As a LCC, Allegiant cites in the 2013 Annual Shareholders Report that they have properly balanced low aircraft ownership costs and operating costs to minimize total costs (Allegiant, 2013). As they have no incentive to reduce emissions, they are able to focus on the overall lower operating costs despite fuel accounting for 40% of operational costs (Allegiant, 2013). Unfortunately, Allegiant in the same report to its shareholders, identifies concern and uncertainty over pending legislation over emissions control in congress and that the already established emissions control standards in the EU could be spread under the auspices of the ICAO (Allegiant,…show more content… As a result, Allegiant identifies that if congress passes similar emission control, Allegiant would not be able to operate without an increases in costs of business. As a result, environmental emission control fears and uncertainty in fuel, Allegiant used the revenue acquired from the low cost of market entry with the MD-80s, to begin leasing and ordering A319s and A320s as replacement fleet. Airbus lists an A320 with an average list price of 93.9 million which dramatically differs from Allegiants initial aircraft cost of 4 million (Airbus, 2014). Allegiant cited a 12 percent increase in fuel burn productivity after the introduction of three leased A319s into their fleet (Allegiant, 2013). As a result of growing fears of fuel costs and emissions legislation, Allegiant has inherently moved to a greener
