Allegiant Travel Company will announce today its intention to lease nine Airbus A319 aircraft from GE Capital Aviation Services (GECAS) and to lease and eventually purchase ten Airbus A319 aircraft from Cebu Pacific Air. The introduction of the A319 aircraft will support Allegiant’s growth opportunities.
“The A319 is a new aircraft type for Allegiant, but we otherwise see this as a continuation of our existing business model,” said Andrew C. Levy, Allegiant President. “A319 asset values have significantly declined and now mirror the environment we saw when we first began buying MD-80s.”
At the time of delivery to Allegiant, the aircraft will be approximately 8-10 years old. Allegiant plans to have the first two of these aircraft in operation in the second quarter of 2013 with an additional aircraft being added in 2014. The remaining six aircraft will be delivered in 2015 with four of them in the fourth quarter.
Allegiant currently operates 58 MD-80 aircraft (with two retiring in 2013), four Boeing 757-200 aircraft and owns an additional two Boeing 757-200 aircraft.
The airline recently added the Boeing 757’s to begin service to the Hawaiian islands from the West coast of the United States. The A319 additions will increase the airline’s reach for non-stop flights domestically from the 1,400 nautical mile range of the MD-80 to the A319’s 3,600nm.