Allegiant Air will expand its fleet by ordering 50 Boeing 737 MAX aircraft with options for 50 additional jets. Allegiant (ALGT) has picked two models, namely Boeing 737 MAX 7 and Boeing 737 MAX 8200.
A hefty order would see Allegiant (ALGT) switching suppliers and replacing its older Airbus fleet of A319 and A320 aircraft. Currently, Allegiant’s (ALGT) fleet consists of 108 Airbus-built aircraft.
“Our approach to fleet has always been opportunistic, and this exciting transaction with Boeing is no exception,” said Maurice J. Gallagher, Jr., Allegiant (ALGT) chairman and CEO.
Gallagher added: ”While the heart of our strategy continues to center on previously-owned aircraft, the infusion of up to 100 direct-from-the-manufacturer 737s will bring numerous benefits for the future – including flexibility for capacity growth and aircraft retirements, significant environmental benefits, and modern configuration and cabin features our customers will appreciate.”
The airline has been in talks with both Airbus and Boeing over the order of new jets. Sources familiar with the matter told Reuters that Allegiant (ALGT) had been deliberating between the Airbus A220 and the Boeing 737 MAX 7 aircraft.
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.
