Allegiant Travel Company today announced that it has entered into an agreement to purchase six additional A319 aircraft. The aircraft are currently being operated by Cebu Pacific Air and are scheduled to enter the Allegiant operating fleet from the end of 2015 through 2017.
“We continue to be able to find high quality, used A319s that fit our specification,” said Jude Bricker, Senior Vice President of Planning. “These aircraft will have 156 seats which is similar to our current A319s. Including these aircraft, we have added commitments for ten additional A320 series aircraft so far this year and will remain active in the used A320 market,” concluded Bricker.
Two of the aircraft will be purchased in 2015 and the company expects the remainder to be purchased in 2016. Allegiant’s expected fleet plan including all aircraft currently under contract is as follows:
2015E 2016E 2017E 2018E
A320 10 10 14 14
A319 11 17 18 30
MD-80 53 53 53 53
757 6 6 6 6
Total 80 86 91 103
YoY fleet growth 14% 8% 6% 13%
Las Vegas-based Allegiant Travel Company is focused on linking travelers in small cities to world-class leisure destinations. The company operates a low-cost, high-efficiency, all-jet passenger airline through its subsidiary, Allegiant Air.
According to a press release from the company, the additional aircraft with be brought into Allegiant’s fleet of aircraft, comprised of MD-80s, 757s and A320s, in 2017. “We are active in the used Airbus A320 market and will engage in transactions that make economic sense for the company,” said Jude Bricker, Senior Vice President of Planning.
“These aircraft will help us maintain our desired growth rate into 2017 and provide us with additional high quality A320 aircraft.”
“It is also another demonstration of our ability to grow the fleet while still providing returns to shareholders such as our recently announced $0.25 per share recurring quarterly cash dividend and the $86 million remaining in our share repurchase authority.”
Recently named one of FORTUNE magazine’s “100 Fastest-Growing Companies” for the second consecutive year, Las Vegas-based Allegiant has a niche market in the air travel industry with a focus on linking travelers in small cities to world-class leisure destinations.