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Fri, Jan 07, 2022

Boeing Clarifies Allegiant Order

Boasting a $5.5 Billion Order On the Books, The 737 MAX Has Drawn Another Airline to the Boeing Side

Boeing announced the specifics of the now inked Allegiant order, said in recent days to be a deal for 50 737 MAX aircraft, with a number of 737 8-200 models that will see the carrier as its launch customer. 

Allegiant selected the Boeing kit in a turn from their 110-strong fleet of used Airbus aircraft, ostensibly out of the desire for greater fuel economy and cheaper maintenance costs. Their A119s, now long in the tooth, have brought increasing expenses to the ultra low cost carrier, and the move to diversify their fleet with a domestic American manufacturer could prove to be a wise one should supply chain instability continue. The carrier has built a name for themselves by filling a niche of smaller, less-attended routes ignored by larger airlines. The economy of the 737 MAX reputedly straddles the line between regional jet and narrowbody costs, affordable enough to be pressed into profitable service that would otherwise be relegated to smaller aircraft.

Boeing CEO Stan Deal said the new models will reduce fuel and carbon emissions by 20%, with the 737-8-200 offering even greater revenue potential for those routes requiring extra capacity. "We are thrilled that Allegiant has selected Boeing and the 737 MAX as they position themselves for future growth, improved efficiency and operational cost performance." said Deal. "This deal further validates the economics of the 737 MAX family in the ULCC market and we're excited to stand alongside Allegiant as they integrate these new airplanes into their fleet."

"Our approach to the fleet has always been opportunistic, and this exciting transaction with Boeing is no exception," said Maurice J. Gallagher, Allegiant CEO. "While the heart of our strategy continues to center on previously-owned aircraft, the infusion of up to 100 direct-from-the-manufacturer 737s 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."

FMI: www.boeing.com

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