Allegiant Air yesterday announced an order for 50 737 MAX jets, with options for 50 additional airplanes. In Boeing's first US ultra-low cost carrier (ULCC) deal, Allegiant selected two models – the 737-7 and 737-8-200 – in the 737 MAX family.
Allegiant currently operates a fleet of 108 Airbus A319 and A320 airplanes. The order marks a transition from an all-Airbus fleet, which has worried some investors due to additional costs of operating a dual type fleet. However, Allegiant has maintained that the price it paid of the Boeing aircraft added to it lower operating costs result in a good deal for the airline.
"Our approach to fleet has always been opportunistic, and this exciting transaction with Boeing is no exception," said Maurice J. Gallagher, Jr., Allegiant chairman and CEO. "While the heart of our strategy continues to centre 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 737-7 provides low-operating costs that enable carriers to open new routes with less economic risk, and the larger 737-8-200 offers added revenue potential and is right-sized for ULCC market expansion. Compared to Allegiant's current fleet, the new 737 models will reduce fuel use and carbon emissions by 20%.
"We are thrilled that Allegiant has selected Boeing and the 737 MAX as they position themselves for future growth, improved efficiency and operational cost performance." said Stan Deal, Boeing Commercial Airplanes president and CEO. "This deal further validates the economics of the 737 MAX family in the ULCC market and we're excited to stand alongside Allegiant as they integrate these new airplanes into their fleet."
Boeing and Allegiant will partner on entry-into-service support, and the airline will also utilize a suite of Boeing Global Services digital tools to further enhance operational efficiency.