Market Overview

Allegiant Travel To Acquire 4 Additional A319 Aircraft


Allegiant Travel Company (NASDAQ: ALGT) revealed an agreement to acquire four additional Airbus A319 aircraft from low-cost carrier Cebu Pacific, which is a Philippines based one. According to the company, the purchase represented another milestone for it in its long-term transition to an all Airbus fleet.

Allegiant said the aircraft in this deal were scheduled for delivery in 2017 and 2018. The company indicated that it agreed to buy six Airbus A319 aircraft from Cebu Pacific earlier. The company added that it has taken delivery of three of them and the remaining deliveries would happen later in the current year.

The company's COO, Jude Bricker, commented, "By the end of 2016, Allegiant will be a majority Airbus carrier, as measured by available seat miles. This agreement to purchase additional aircraft from Cebu Pacific is an important step in our long-term transition to a single fleet type."

Allegiant disclosed that its Airbus fleet would total 33 by the end of the current year. It would consist of 16 A320s and 17 A319s. The company anticipates adding further aircraft commitments as and when opportunities for new transactions arise. The company would have a total of 85 aircraft in revenue service at the end of the current year.

The younger A320 family aircraft would help company to lift operational efficiency in the upcoming years.

The stock traded 4.67 percent down on Thursday.


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