Allegiant Travel Company announced that on December 30, 2009 it signed an agreement to purchase 18 MD-80 aircraft from Scandinavian Airlines System (SAS). Allegiant will pay for the aircraft with cash. Allegiant expects to take delivery of these aircraft during the first three quarters of 2010. The 18 purchased aircraft comprise two groups:
13 MD-82/3 aircraft which the Company’s airline subsidiary Allegiant Air expects to place into service by the end of 2011. Along with a previously-announced separate purchase of two MD-82/3 aircraft (also from SAS) for delivery in the first quarter of 2010, this transaction satisfies essentially all of Allegiant’s currently expected aircraft growth through the end of 2011. Allegiant expects to operate at least 52 aircraft by the end of 2010 and as many as 60 aircraft by the end of 2011. Allegiant expects that the all-in cost of placing each such aircraft into service, including an allocable portion of the acquisition price and required maintenance, paint, seats, equipment upgrades and other necessary modifications will be less than $4 million per aircraft.
Five MD-87 aircraft which Allegiant will not operate but instead plans to use as a source of spare engines and other spare parts.
