Allegiant Travel Company to Purchase 18 MD-80 Aircraft
Expects to Operate 13 of 18 Aircraft
LAS VEGAS, Jan 04, 2010 /PRNewswire-FirstCall via COMTEX News Network/ -- Allegiant Travel Company (Nasdaq: ALGT) today announced that on December 30, 2009 it signed an agreement to purchase 18 MD-80 aircraft from Scandinavian Airlines System (SAS). Allegiant will pay for the aircraft with cash.
Allegiant expects to take delivery of these aircraft during the first three quarters of 2010. The 18 purchased aircraft comprise two groups:
* 13 MD-82/3 aircraft which the Company's airline subsidiary
Allegiant Air expects to place into service by the end of 2011. Along
with a previously-announced separate purchase of two MD-82/3
aircraft (also from SAS) for delivery in the first quarter of 2010,
this transaction satisfies essentially all of Allegiant's currently
expected aircraft growth through the end of 2011. Allegiant expects
to operate at least 52 aircraft by the end of 2010 and as many as 60
aircraft by the end of 2011.
Allegiant expects that the all-in cost of placing each such aircraft
into service, including an allocable portion of the acquisition price
and required maintenance, paint, seats, equipment upgrades and other
necessary modifications will be less than $4 million per aircraft.
* Five MD-87 aircraft which Allegiant will not operate but instead
plans to use as a source of spare engines and other spare parts.