Allegiant Air is reportedly planning to expand its fleet by ordering 50 Boeing 737 MAX aircraft worth $5 billion at list price, people familiar with the matter told Reuters on January 4, 2022.
The airline has been in talks with both Airbus and Boeing over the future order of new jets. Sources also told Reuters that Allegiant (ALGT) had been deliberating between the Airbus A220 and the Boeing 737 MAX 7 aircraft.
If finalized, a hefty order would see Allegiant (ALGT) switching suppliers and potentially replacing its older Airbus fleet of A319 and A320 aircraft.
Currently, Allegiant’s (ALGT) fleet consists of 121 Airbus-built aircraft, namely 86 Airbus A320s and 35 Airbus A319 aircraft, according to Planespotters.net. The average age of the airline’s fleet stands at 14.8 years old.
Supply changes of this kind have become more commonplace in recent months. Another long-time customer of Boeing, KLM Royal Dutch Airlines, picked Airbus A320neo aircraft instead of Boeing 737 MAX jets for the future supply of medium-haul aircraft. Meanwhile, Qantas selected Airbus rather than Boeing to replace its existing domestic fleet.