US’s Allegiant Air orders 50+50 Boeing 737 MAX

Allegiant Air (G4, Las Vegas Harry Reid) has placed an order with Boeing (BOE, Chicago O’Hare) for fifty B737 MAX with options for another fifty, although it stressed it would not abandon its long-term strategy of sourcing second-hand Airbus narrowbodies.

The Nevada-based leisure specialist said the order was split between thirty B737-7s and twenty B737-8-200s. The initial batch of ten is scheduled to deliver in 2023, with the remainder due in 2024 (24) and 2025 (16).

“Our approach to fleet has always been opportunistic, and this exciting transaction with Boeing is no exception,” the Chairman and Chief Executive of the parent holding Allegiant Travel, Maurice J. Gallagher, Jr., said.

Allegiant Air operates thirty-five A319-100s and eighty-five A320-200s, with a further eight A320s due for delivery. The vast majority of the aircraft were sourced from the second-hand market – only thirteen A320s were delivered directly from the manufacturer to Allegiant Air. The ultra-low-cost carrier has prided itself on identifying capital light deals for mid-life aircraft. In October 2020, the airline said it was “inundated” with offers for second-hand A320s as many carriers downsized their fleets during the pandemic.

Gallagher, Jr. underlined that Allegiant Air would not abandon this strategy despite the new order with Boeing.

“While the heart of our strategy continues to centre on previously-owned aircraft, the infusion of up to 100 direct-from-the-manufacturer B737s 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,” he said.

The airline will use part of the newly delivered B737 MAX for the replacement of retired aircraft and part for fleet growth. The airline is only the third customer for the high-density B737-8-200 variant (after Ryanair Holdings and VietJetAir).

Allegiant Air used to operate six B757-200s between 2010 and 2017, but never B737s.