Boeing lands airplane order from US budget carrier Allegiant

By AP News

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LAS VEGAS (AP) — Allegiant Air said Wednesday that it will buy 50 Boeing 737 Max jets and take options for 50 more, giving Chicago-based Boeing a major foothold in the discount airline’s all-Airbus fleet.

FILE - An Allegiant Air flight to Bellville, Ill., taxis at Destin-Fort Walton Beach Airport on Wednesday June 6, 2018, in Valparaiso, Fla. Allegiant Air is ordering new planes from Boeing. Allegiant said Wednesday, Jan. 5, 2022, that it will buy 50 Boeing 737 Max jets and take options for 50 more. (Nick Tomecek/Northwest Florida Daily News via AP)

LAS VEGAS (AP) — Allegiant Air said Wednesday that it will buy 50 Boeing 737 Max jets and take options for 50 more, giving Chicago-based Boeing a major foothold in the discount airline’s all-Airbus fleet.

Financial terms were not released. The 737 Max 7 and Max 8 models selected by Allegiant list for $99.7 million and $121.6 million apiece, but airlines routinely receive deep discounts.

Allegiant said it will take delivery of the planes from 2023 through 2025.

Maurice Gallagher, the CEO and chairman of parent Allegiant Travel Co., said the Las Vegas-based company will continue to buy used planes but the Boeing deal gives it the flexibility to increase passenger-carrying capacity and retire older planes.

Boeing said the new jets would burn 20% less fuel than Allegiant’s current fleet, which includes 44 Airbus A320 planes and 31 slightly smaller Airbus A319s, according to the airline’s website.

Allegiant previously used MD-80 planes from McDonnell Douglas, which Boeing bought in 1999. The airline retired the last of those planes and went to an all-Airbus fleet in 2018.

Allegiant shares were down more than 8% in afternoon trading.

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Author: AP News

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