Finally, on Wednesday 5, Allegiant confirmed the purchase of 50 aircraft of the Boeing 737 MAX family, with options for another 50, following yesterday’s announcement by Reuters.
The order covers aircraft of the 737-7 and 737-8-200 (the high-density MAX 8) variants, which will begin delivery in 2023, with the remainder to be delivered between 2024 and 2025. Leaving aside speculation about the conditions under which Allegiant closed the deal with Boeing (discounts!), the news comes as a breath of fresh air after during the last month the US manufacturer lost two major customers such as KLM and Qantas to the A320 and A220 families.
And, in that regard, Maurce J. Gallagher, Jr. was clear: “Our whole approach to the fleet has always been one of opportunism, and this major transaction with Boeing is no exception.”
“While the core of our strategy continues to focus on secondhand aircraft, the addition of up to 100 737s direct from the factory will bring numerous benefits going forward, such as flexibility for capacity growth and aircraft retirement, significant environmental benefits, and cabins with a configuration and features our customers will value,” he added.
Allegiant operates a fleet comprising 108 A320 family aircraft, the vast majority of them second-hand except for a dozen of some of the latest of the CEO variant, aiming, to keep fixed costs down. However, the pandemic opened up the possibility of acquiring new equipment, they added.
In this way, they will not only be able to gradually replace older aircraft but also maintain growth estimated at 10% per year.
“We are thrilled that Allegiant has chosen Boeing and the 737 MAX to position itself for future growth, improved efficiency, and operating cost performance,” commented Stan Deal, President, and CEO of Boeing Commercial Airplanes. “This agreement further validates the economics of the 737 MAX family in the ULCC market and we are excited to be alongside Allegiant as they integrate these new airplanes into their fleet,” he commented.
The aircraft will be equipped with CFM LEAP 1-B engines. Allegiant signed an exclusive maintenance contract with CFM for the engines, which also covers its Airbus fleet.
Allegiant is based in Las Vegas, and within the ultra-low-cost segment has specialized in serving small and medium-sized cities, connecting them to major U.S. tourist destinations.
