Allegiant Travel Company Acquires 50 Boeing 737-MAX Aircraft

Strategic Insights -

Allegiant Travel Company has made significant strides in expanding its fleet by acquiring 50 newly manufactured Boeing 737-MAX aircraft. The agreement with The Boeing Company was finalized on December 31, 2021. The list price for the firm aircraft is approximately $5.49 billion, with prices subject to discounts and price escalations through the dates of delivery. The aircraft deliveries are expected to begin in 2023 and conclude in 2025, with the option to acquire up to 50 additional aircraft.

The acquisition is a significant step forward for Allegiant Travel Company, as it aims to strengthen its position in the competitive airline industry. The move is expected to have a projected impact on the company, which is highlighted in the Fleet Update filed as Exhibit 99.1 to this Form 8-K.

Key Takeaways:

  • Allegiant Travel Company has entered into an agreement to acquire 50 newly manufactured Boeing 737-MAX aircraft from The Boeing Company for approximately $5.49 billion.
  • The agreement was finalized on December 31, 2021, with deliveries expected to begin in 2023 and conclude in 2025.
  • The list price for the firm aircraft is approximate $109 million per unit, with prices subject to discounts and price escalations through the dates of delivery.
  • The company has the option to acquire up to 50 additional Boeing 737-MAX aircraft, beginning in 2025.
  • The acquisition is expected to have a projected impact on the company, as detailed in the Fleet Update filed as Exhibit 99.1 to this Form 8-K.
  • The definitive purchase agreement with Boeing will be filed as an exhibit to the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

Statistics:

  • 50 newly manufactured Boeing 737-MAX aircraft acquired by Allegiant Travel Company
  • List price for the firm aircraft: approximately $5.49 billion
  • Price per unit: approximate $109 million
  • Delivery timeline: 2023-2025
  • Option to acquire up to 50 additional aircraft, beginning in 2025

Sources:

  • Allegiant Travel Company, FORM 8-K (Current Report) filed with Securities and Exchange Commission on January 06, 2022.
  • The Boeing Company
  • Securities and Exchange Commission.