Allegiant Travel Co. (ALGT: Quote) 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."
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by RTT Staff Writer
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