Allegiant Air Will Purchase 50 New Boeing 737 Aircraft

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Allegiant Air Boeing 737
Rendering of Boeing 737-7 and 737-8-200 featuring Allegiant livery.

Allegiant Air Will Purchase 50 New Boeing 737 Aircraft

U.S. low-cost carrier Allegiant Air has unveiled plans to buy 50 new Boeing 737 MAX jets worth at least $5.5 billion. This is a switch in strategy for the airline it prepares for a post-pandemic leisure travel rebound.

The multi-year deal is Boeing’s first with an ultra-low-cost carrier in the United States. Allegiant is looking to modernize its fleet with 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.

The announcement marks a strategy shift for Allegiant. The low-cost carrier has been primarily focused on high quality used aircraft until now. 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.

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 provide fuel savings, using 20 percent less than older Airbus A320 family aircraft. The new aircraft will also offer increased seating capacity.

The new jets 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 as well.

DDGhttp://dannydealguru.com
Based in NYC. Points/miles enthusiast for years and actively writing about it for the last 6+ years at Danny the Deal Guru. I'm always looking out for deals. Making a few bucks is always nice, but the traveling is by far the best part of this business.

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