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
Chuck E. Cheese pizza and arcade chain's parent company is planning for an IPO, reported Reuters. The public offering would be probably in the second half of 2017. According to the report, the chain has initiated discussions with banks, however has not yet hired any underwriters. The offering would help the restaurant chain for a valuation of around $1 billion. The Federal Aviation Administration said that SkyPan International Inc. will pay a civil penalty of $200,000 for violating federal regulations by flying remote-controlled aircraft in congested airspace over New York and Chicago. This is the largest civil penalty issued by the FAA against a drone operator. Citigroup Inc. on Wednesday reported a 7 percent increase in profit for the fourth quarter from last year as lower revenues were more than offset by decreases in cost of credit as well as operating expenses. Adjusted earnings for the quarter beat analysts' expectations, while revenues missed their estimates.
comments powered by Disqus
Follow RTT