Allegiant Makes Big Bet on Boeing 737 MAX
Joe Cortez January 05, 2022
In a press release, Allegiant and the Chicago-based aerospace company announced Allegiant Air signed an agreement to purchase up to 100 new airframes from the company, with first deliveries in 2023.
Deal Includes 50 Firm Orders and 50 Options on 737 MAX-8
According to Boeing, the deal with the Las Vegas-based carrier calls for two waves of aircraft. The firm order is for 50 737 MAX-8 airframes, with an option for 50 more. Although financial details were not released, the Boeing list price for a MAX-8 is $121.6 million, valuing the deal at up to $12.1 billion.
Their order will split between two types of airframes: The standard MAX-8 and the larger MAX-8-200. First announced in 2014, the MAX-8-200 can seat 11 more passengers compared to the standard variation, with a maximum range of over 4,000 miles. Allegiant did not say how much of each aircraft they would take delivery of from their 50 firm orders.
The order contrasts with their current fleet of 108 Airbus A319 and A320 aircraft, most of which were purchased from other airlines. In making the decision, executives for Allegiant say the 737 MAX was chosen over the A320 family for its flexibility and potential for growth within their network.
“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,” Allegiant chairman and chief executive Maurice J. Gallagher, Jr. said in a press release. “Including flexibility for capacity growth and aircraft retirements, significant environmental benefits, and modern configuration and cabin features our customers will appreciate.”
In addition to improving efficiency and expanding their reach, both companies say this is the first step towards a longer partnership between the two. As part of the agreement, Allegiant will also utilize Boeing Global Services digital tool to implement the new aircraft and further enhance operational efficiency.
The new aircraft will join Allegiant’s current fleet of 108 Airbus A320 family airframes. The French aerospace giant has not commented on the order.
Allegiant Latest Ultra-Low-Cost-Carrier to Utilize Boeing Aircraft
With the announcement, Allegiant is the latest discount airline to utilize the 737 MAX for future growth. In December 2020, Ryanair announced they would add 75 more 737 MAX airframes to their established order, bringing their total to 210 new jets.
Feature image courtesy: Allegiant Air
Had little incentive to fly them before. This puts the nail in the coffin for me.
I'll never knowingly fly a Max. Just a bad design.
I have flown quite a few United flights on the Max. I think everyone in the airlines industry understands the issues and behaviors of the Max. I am still pissed at Boeing for doing this to their stockholders. It goes back to when they merged with McDonnell Douglas. That merger brought in too many cheap skates into Boeing management. Boeing was always more safety oriented before those jerks came into the company.
...same here.
The MAX 200 isn't larger. Just reduced galley space, seat pitch, and extra exit doors to cram in more seats. Definitely for the ULCC (Ultra Low Comfort Carrier).
BA needed this sale and "flip" to preserve what is left of their standing in the aviation world. I think many of the first wave of planes are coming from canceled orders.