Key Points:

  • Allegiant Air has made modifications to its 2021 order of Boeing 737 MAX aircraft, switching some orders from 737-7s to 737-8-200s, with an additional 30 Boeing 737 MAX options.

  • The updated agreements stipulate a new delivery schedule starting from late 2023 and stretching through the end of 2025.

  • Financing for the airline's first four Boeing 737-8-200s and refinancing for seven A320-200s has been secured, amounting to up to US$412.1 million.

LAS VEGAS — Allegiant Air has reconfigured its 2021 order for Boeing 737 MAX aircraft. The specifics of the shift between the Boeing 737-7s and 737-8-200s remain undisclosed. In a recent report to the US Security and Exchange Commission (SEC), the airline highlighted a newly established delivery timeline. This updated schedule indicates the reception of the first aircraft from this modified order by the end of 2023, with the entire initial order of 50 planes expected to be completed by late 2025.

Upcoming Retirement and Previous Commitments

With the altered timeline in mind, Allegiant has announced plans to retire 21 A320-200s by the conclusion of 2025. Prior to this adjustment, Boeing's records indicated that Allegiant had committed to acquiring 30 Boeing 737-7s and 20 Boeing 737-8-200s. The carrier is among a handful, including Southwest Airlines, SkyUp Airlines, Luxair, and Ruili Airlines, to show interest in the yet-to-be-certified smaller variant of the aircraft.

Securing Financial Backing and Fleet Composition Strategy

In a significant financial move, Allegiant has obtained loan financing of up to US$412.1 million. This funding, facilitated by BNP Paribas and Jackson Square Aviation, aims to support the acquisition of the initial four Boeing 737-8-200s slated for delivery between December 2023 and June 2024. Additionally, it will be allocated towards the refinancing of seven A320-200s. Despite the inclusion of new Boeing 737 MAX aircraft, Allegiant remains steadfast in its long-standing strategy of sourcing used Airbus aircraft. Presently, the airline's fleet encompasses 35 A319-100s and 94 A320-200s.

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