US aerospace giant Boeing announced on Wednesday that it had secured an order from US ‘ultra low cost carrier’ (ULCC) Allegiant Air for 50 of its 737 MAX single-aisle airliners, with options for a further 50. The order is split between the 737-7 and 737-8-200 versions of the MAX (the 737-7 being the smallest of the MAX models). The numerical breakdown between the two types was not divulged.
“Our approach to [acquiring our] fleet has always been opportunistic, and this exciting transaction with Boeing is no exception,” highlighted Allegiant Air chairman and CEO Maurice J Gallagher Jr. “While the heart of our strategy continues to centre 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 requirements, significant environmental benefits, and modern configuration and cabin features our customers will appreciate.”
“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,” affirmed Boeing Commercial Airplanes president and CEO Stan 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.”
Boeing will also provide entry-into-service support for Allegiant for its new 737 MAX fleet. Further, the airline will employ a suite of digital tools from Boeing Global Services to increase its operational efficiency. The first of the new aircraft will be delivered to the airline next year, with the rest following during 2024 and 2025.
The manufacturer noted that its 737-8-200 was ‘right-sized’ to expand ULCC networks to new markets, so providing increased revenue potential. The 737-7 provided low operating costs and so allowed carriers to establish new routes with reduced financial risk.
Together, the 737-7 and 737-8-200 will reduce Allegiant’s fuel consumption and carbon emissions by 20%, in comparison to the airline’s existing fleet. The airline will use the new aircraft both to replace airliners already scheduled for retirement and to expand its fleet.