Allegiant Travel Company Announces the Intention to Acquire Up to Nine A320
LAS VEGAS, Dec. 19, 2012 (GLOBE NEWSWIRE) -- Allegiant Travel Company
(Nasdaq:ALGT) today announced its intention to purchase up to nine used A320
aircraft. The average age of these aircraft at delivery is expected to be 12
years with a configuration of 177 seats.The aircraft have been most recently
operated by Iberia.
"The A320 aircraft type is a perfect complement to the smaller A319 and will
enable us to continue cost effective growth for years to come," said Andrew C.
Levy, Allegiant President."These transactions represent a tremendous
opportunity to purchase a sizeable fleet of sister-ships with CFM powered
engines, the same engine type as our A319s, at very attractive prices.Finding
up to nine aircraft of this pedigree available for purchase is unusual in our
experience.Historically it has been difficult to find owners willing to sell
quality assets at this point in their life cycle.Our cash reserves and strong
balance sheet continue to provide us a unique ability in the used aircraft
space to move on these attractive opportunities."
"We do not expect a material change to our 2013 capacity as we will vary MD-80
utilization appropriately.As with the earlier acquisition of A319s, we are
committed to only acquire aircraft at values that support our existing
business model of relatively low fleet utilization," concluded Levy.
Seven aircraft are expected to be purchased in 2013 and two in 2014.With the
addition of this transaction, Allegiant is now expecting 2013 total CAPEX to
be between $270 and $280 million versus the previous guidance of $150 to $160
million.The company expects to finance the purchase of these aircraft with
debt.Allegiant expects to place the first A320 into service late in the third
quarter of 2013 and all nine aircraft are expected to be in service by the end
of 2014.No additional MD-80 retirements are planned as a result of this
Allegiant, Travel is our deal.^®
Las Vegas-based Allegiant Travel Company^® (Nasdaq:ALGT) is focused on linking
travelers in small cities to world-class leisure destinations. Through its
subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency,
all-jet passenger airline, and its subsidiary Allegiant Vacations offers other
travel-related products such as hotel rooms, rental cars, and attraction
tickets through its website, allegiant.com. The company has been named one of
America's 100 Best Small Companies by Forbes Magazine for four consecutive
years. For downloadable press kit, including photos, visit:
The Allegiant Travel Company logo is available at
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are forward-looking statements. These forward-looking statements are only
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