Bank Of America & Allegiant To Launch Co-Branded Credit Card

Card is now available for applications, our full in depth review can be found by clicking here.

Allegiant had their fourth quarter earnings call today and one of the questions was surrounding a co-branded credit card. The question starts at around 27:30 and I’ve done my best to transcribe it below (click here to listen to the earnings call yourself, I’m not responsible for any transcribing errors).

Earnings Call

Question: And any update on the credit card roll out in terms of timing and any other details you can share?

Answer: Yes, there is. So we signed a deal with Bank of America for cobrand card which we are very excited about. We’ve also terminated our agreement with our previous contract so all that stuff is done. We’re excited about launching the program it’ll happen this year, I would not expect material ancillary revenue from the credit card program until on our books until the beginning of 2017. But right now we’re planning on a launch here in about six months and everythings on track. So as compared to earlier guidance we’re probably going to be a couple of months late but we’re running out of things that are standing in our way so I’m very excited about getting the cobrand credit card out there for our customers.

More About The Card

This card was originally supposed to launch on June 30th of last year, but as above it looks like Allegiant has changed card issuers (going from an undisclosed issuer to Bank of America) and it’ll launch hopefully in 6 months time or so. Allegiant doesn’t have a frequent flier program (like most other low cost airlines) so it’s not clear how the reward program on this card will actually be structured. Previously they’ve stated that “the airline wouldn’t have a traditional frequent-flier club, but instead a credit card that would reward customers with travel incentives on their purchases”.

I could imagine some type of tiered point system for the credit card, with points being directly related to the cost of the flight. For example:

• 10,000 points: flights under $100
• 10,000-20,000 points: Flights $100-$200
• Etc etc

Allegiant also charges a fee to use a credit card to book flights, I suspect this will be waived when using their co-branded credit card.

Our Verdict

I doubt that this card will be very interesting to most people, but perhaps there will be some limited value like there is for Spirit credit card holders (also issued by Bank of America).

Hat tip to @BrianSumers