Allegiant Air (G4, Las Vegas Harry Reid) has announced it will acquire an additional fourteen A320 Family aircraft while simultaneously acquiring two A319-100s currently on lease. Outlining three separate aircraft transactions, Allegiant said it would purchase twelve A319 aircraft, currently leased to a European carrier until 2018 (presumably easyJet (London Luton)), with the transaction expected to be completed by the end of the month.
As each aircraft lease expires, Allegiant will transition the aircraft into its operating fleet.
"Allegiant expects to recognize approximately USD30million in annual lease revenue beginning in June 2014 through 2018 and plans to assume USD142million of secured debt under this transaction," it said.
The remaining two growth aircraft - one A319 and one A320 - will be purchased in 2015 and 2016 upon delivery.
Regarding the other transactions, Allegiant says it expects to conclude a transaction to acquire two A319s leased from GE Capital Aviation Services (GECAS) and currently in service with its fleet, in July.
The remaining six aircraft under the lease agreement, executed in 2012, will be purchased at the time of delivery to Allegiant, expected to be in late 2014 through 2015.
"We will now have 32 Airbus series aircraft, all owned, in our fleet by the end of 2018. We expect to use debt financing along with cash reserves to purchase these aircraft. Importantly, the additional A320/A319 aircraft are all sister ships to aircraft we currently operate. We remain active in the used Airbus (AIB, Toulouse Blagnac) market and hope to add more aircraft to our fleet during 2016 and 2017," Allegiant Travel Company President & Chief Operating Officer, Andrew C. Levy, said.
As it stands, Allegiant currently operates three A319s, seven A320s, six B757-200s, forty-five MD-83s, and six MD-88s.
