LAS VEGAS, Jan. 5, 2022 /PRNewswire/ -- Allegiant
Travel Company (NASDAQ: ALGT) today announces an agreement with
Boeing to purchase 50 new 737 MAX aircraft as part of the
airline's ongoing efforts to modernize and expand its fleet.
The multi-year deal – Boeing's first with an ultra-low-cost
carrier in the United States –
includes the purchase of 737-7 and 737-8-200 models, as well
as options to purchase 50 additional aircraft, giving the company
flexibility for future growth. Allegiant will take delivery of an
initial group of planes in 2023, with the remaining deliveries
scheduled throughout 2024 and 2025.
"Our approach to fleet has always been opportunistic, and this
exciting transaction with Boeing is no exception," said
Maurice J. Gallagher, Jr., Allegiant
chairman and chief executive officer. "While the heart of our
strategy continues to center on previously-owned aircraft, the
infusion of up to 100 direct-from-the-manufacturer 737s will bring
numerous benefits for the future – including flexibility for
capacity growth and aircraft retirements, significant environmental
benefits, and modern configuration and cabin features our customers
will appreciate."
Allegiant's unique ULCC business model has been primarily
focused on high quality used aircraft to maintain lower fixed
costs. However, the pandemic recovery cycle has brought to
Allegiant unique opportunities to acquire new equipment, including
this aircraft-family solution, which will add significant economic
and operational benefits for years to come.
The arrangement with Boeing will allow Allegiant to replace
aircraft that are scheduled to retire while also expanding the
fleet to maintain the company's projected 10 percent-plus annual
growth rate.
"We are thrilled that Allegiant has selected Boeing and the 737
MAX as they position themselves for future growth, improved
efficiency and operational cost performance," said Stan Deal, Boeing Commercial Airplanes president
and CEO. "This deal further validates the economics of the 737 MAX
family in the ULCC market and we're excited to stand alongside
Allegiant as they integrate these new airplanes into their
fleet."
The Boeing 737s come equipped with several innovative in-cabin
features – such as Boeing Sky Interior and Space Bins – that create
a feeling of spaciousness, provide more leg room and make storing
and retrieving carry-on luggage easier for passengers.
Additionally, the new aircraft will burn approximately 20 percent
less fuel than older Airbus A320 family aircraft. while also
offering increased seating capacity.
The aircraft will be powered with CFM LEAP 1-B engines.
Allegiant has signed a 12-year exclusive maintenance agreement with
CFM for the LEAP engine fleet, which will also bring support for
the existing Airbus fleet. Allegiant currently operates 108 Airbus
A319s and A320s and will continue sourcing A320s in the used
market.
Allegiant – Together We Fly™
Las Vegas-based Allegiant
(NASDAQ: ALGT) is an integrated travel company with an airline at
its heart, focused on connecting customers with the people,
places and experiences that matter most. 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 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
View original content to download
multimedia:https://www.prnewswire.com/news-releases/allegiant-announces-purchase-of-50-boeing-737-aircraft-301454185.html
SOURCE Allegiant Travel Company