Executive Chairman, Allegiant Travel
Search every verified Maurice Gallagher interview, podcast appearance, and on-the-record quote — each transcript cross-checked by AI and human review to confirm speaker identity. Maurice Gallagher, Executive Chairman of Allegiant Travel, spoke at a Dean's Distinguished Speaker event on September 17, 2016, where he discussed the company's business model and management philosophy. He stated that Allegiant stopped hedging fuel in 2007, explaining that the company adjusts capacity based on oil prices. Gallagher noted that the company had been profitable for 52 consecutive quarters and was operating at a 30 percent margin, which he described as "unheard of in the business." He attributed this success to a focus on leisure customers, the use of older airplanes, and cost efficiency. Gallagher also described his approach to management, saying he is "a big believer in stockholder benefits" and that none of Allegiant's management have employment agreements. He stated that he does not take a salary and that bonuses are based on performance. Gallagher discussed the challenges of scaling management as the company grew from a small commuter airline to one with 83 airplanes and 322 routes. He advised against giving too much money to young companies, saying they "don't learn how to do things inexpensively and efficiently."
“We stopped hedging in 2007. We were the first company to stop it and back then the Wall Street types it was kind of like you check a box are you hedging yes. We started looking at it and realized there are fundamental problems with hedging fuel in a business we don't know. If oil goes up strongly, we pull our capacity...”
“Our model has really been bulletproof and it has worked exceedingly well. We're fifty-two quarters profitable and lead the industry in margins. This year with oil being down, we're at 30 percent operating margins. Historically, three or four percent were good operating margins, so this is a good time for the transporta...”
“I have a very simple mantra: I'm a big believer in stockholder benefits. People invest, they want you to do things right. When we run the company right, it's our company to run; when we run it bad, the board takes over. We have a small board with diverse disciplines and have been fifty-two quarters strong in earnings.”
“None of our management have employment agreements. We pay a simple bonus based on performance, with low base salaries. You make your money on the upside. I don't take a salary; I haven't taken one for years. I'm a stockholder first and foremost.”
Join us to learn valuable leadership advice from Maurice J. Gallagher, Jr. Dean Ann Huff Stevens converses with Gallagher, ...
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