Allegiant Travel Company enters forward purchase agreement to acquire six Boeing 757s.
Allegiant Travel Company (Nasdaq:ALGT) reported on Friday that it has signed a forward purchase agreement under which it will acquire six Boeing 757-200 aircraft.
The aircraft will be operated by the company's airline subsidiary, Allegiant Air LLC. Two aircraft will be delivered within the next two months and will be placed in service in the fourth quarter of 2010; one aircraft will be delivered in November 2010 and one in January 2011, both of which will be put into service in the first half of 2011; and two aircraft will be delivered in the fourth quarter of 2011 and will be put in service in the first half of 2012.
These six 757s have been in service with a European operator since their original delivery from Boeing. The aircraft are all equipped for extended twin-engine operations (ETOPS), as required for long overwater flights.
The company expects to spend between USD75m and USD90m through to 2012 on purchasing and preparing these aircraft for service. It is acquiring the aircraft with the express purpose of serving Hawaii, as it cannot do so with its existing MD-80 fleet.
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|Publication:||Airline Industry Information|
|Date:||Mar 8, 2010|
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