Key Points:

  • Allegiant Air acquires financing for 11 new jets, including Airbus A320ceos and Boeing 737 Max.

  • BNP Paribas and Jackson Square Aviation are the financing partners, with Jackson Square partnering for the first time.

  • Allegiant’s first Boeing 737 Max expected by end of 2023, despite minor delivery delays.

Allegiant's Financing Deal Involves Both Airbus and Boeing Aircraft

LAS VEGAS — Las Vegas-based Allegiant Air announced a significant financing deal of $412 million on 3 October, facilitating the purchase of 11 narrowbody aircraft. This acquisition will comprise seven Airbus A320ceos and four Boeing 737 Max planes. The ultra-low-cost carrier, traditionally operating an all-Airbus lineup, has also inked an agreement for a potential acquisition of up to 130 737 Max 7s and Max 8-200s, the latter being a denser variant of the Max 8.

European financial giant BNP Paribas, along with global aircraft lessor Jackson Square Aviation, are the linchpins behind this significant financing, ensuring Allegiant's financing stability until the second quarter of 2024. While the collaboration with BNP Paribas extends over a decade, aiding Allegiant’s evolution as an ultra-low-cost market leader, this marks the airline's maiden partnership with Jackson Square. Allegiant's CFO, Robert Neal, commended the innovative approach of both financial partners, noting that this deal not only incorporates young A320ceo jets but also marks the initiation of financing for Boeing 737 Max equipment.

Having already drawn down $196 million from the financing pool on 29 September, Allegiant plans to utilize the remaining amount in line with the initial 737 Max deliveries. However, it's noteworthy that a slight delay in the delivery of the first two Max jets was announced in Allegiant's earnings call in August, pushing one of the deliveries to 2024. 

Despite this setback, Drew Wells, Allegiant’s Chief Revenue Officer, remains optimistic about the Max aircraft's operational debut in early 2024, confirming that the 2023 capacity plans remain unaffected by this delay. Bolstering its already impressive fleet of 127 Airbus jets, Allegiant is gearing up for an expansion, targeting a fleet size of over 200 aircraft within the next half-decade.