logo
Share SHARE
FONT-SIZE Plus   Neg

Allegiant Travel To Buy 9 Used A320 Aircraft - Quick Facts

Allegiant Travel Co. (ALGT) said it plans to purchase up to nine used A320 aircraft. The average age of the aircraft at delivery is expected to be 12 years with a configuration of 177 seats. The aircraft have been most recently operated by Iberia.

Seven aircraft are expected to be purchased in 2013 and the remaining two in 2014. With the addition of this transaction, Allegiant is now expecting 2013 total CAPEX to be between $270 million and $280 million compared to the previous guidance of $150 million to $160 million.

Allegiant expects to place the first A320 into service late in the third quarter of 2013. All nine aircraft are expected to be in service by the end of 2014. No additional MD-80 retirements are planned as a result of this deal. The company expects to finance the purchase with debt.

Andrew Levy, Allegiant President, said, "The A320 aircraft type is a perfect complement to the smaller A319 and will enable us to continue cost effective growth for years to come."

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
General Motors (GM) announced on Wednesday that it has been approved to voluntarily delist from the Toronto Stock Exchange. The auto giant reassured its shareholders that the TSX delisting will not impact its current listing on the New York Stock Exchange. Subsequent to the bankruptcy filing of German no frills airline Air Berlin (AIBEF.PK), Lufthansa airline is strongly pursuing to acquire Air Berlin. Meanwhile, Ryanair, its Irish rival, accused conspiracy in the deal and said that the acquisition move will breach the existing competition rules in Germany in general and EU in particular. The Royal Bank of Scotland plans to cut 880 jobs from its IT department in London by 2020, a UK labor union reported. Britain's Unite union claimed on Tuesday that the bank informed its staff about a further 40 percent cut of permanent IT jobs, which is said to be part of ongoing deep cost-cutting at the taxpayer-owned bank. The bank also plans a 65 percent reduction of contractors.
comments powered by Disqus
Follow RTT