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Business Observer Wednesday, Mar. 18, 2020 3 months ago

Coronavirus leads to suspension of resort construction

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Allegiant’s Sunseeker Resorts subsidiary is currently building Sunseeker Resort Charlotte Harbor.

CHARLOTTE HARBOR — Due to continuing impacts of coronavirus, Allegiant Travel Co. will take several measures, including suspending construction of its planned resort in Southwest Florida, Sunseeker Resort Charlotte Harbor, and the related renovation of Kingsway Country Club.

The measures aim to strengthen the company’s balance sheet, consolidate demand while continuing to provide service to customers, protect health and safety, and enable a solid foundation for the future, according to a press release. 

Allegiant’s Sunseeker Resorts subsidiary is currently building Sunseeker Resort Charlotte Harbor in Charlotte County, its inaugural resort property. 

Allegiant has also cut airline capacity by about 15% during April and May, a figure expected to grow to 30% to 35% with additional reductions to come. 

Allegiant has placed an immediate moratorium on all non-essential capital expenditures and discretionary spending across the company and instituted an immediate hiring freeze on all non-essential positions.

“This set of initiatives could defer as much as $300 million in planned cash outlay for 2020,” says CFO Greg Anderson in a statement. “With these initiatives we believe we are well positioned to mitigate the impact to our sector of COVID-19, but we will continue to be proactive in our approach to mitigate both current and long-term effects, and to bring forward additional measures as needed.”

Las Vegas-based Allegiant serves more than 450 routes across the country.

 

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