LAS VEGAS, Jan. 4 /PRNewswire-FirstCall/ -- Allegiant Travel Company (Nasdaq: ALGT) today 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.
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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.Allegiant President and CFO Andrew Levy commented, "This transaction re-affirms our commitment to the MD-80 aircraft. Our ability to acquire such highly-reliable aircraft at attractive economics permits Allegiant to closely tailor our capacity to demand, a key element of our leisure-oriented business model. We believe these are clearly the best MD-80 aircraft available, having an unbeatable maintenance pedigree and being sister ships to 11 aircraft already in our fleet, thereby enhancing fleet commonality. This is the fifth aircraft transaction Allegiant has entered with SAS, which has, at all times, been a stellar business partner to Allegiant Travel Company. Once this transaction is complete, we do not expect to need further aircraft purchases to fund growth currently planned through the end of 2011."
Allegiant Air currently operates 46 MD-80 aircraft of which all but four are owned.
About the Company
Las Vegas based Allegiant Travel Company (Nasdaq: ALGT), is focused on linking travelers in small cities to world-class leisure destinations such as Las Vegas, Phoenix, Los Angeles, Orlando, Fla. Tampa/St. Petersburg, Fla. and Fort Lauderdale, Fla. Through its subsidiary, Allegiant Air, the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. ALGT/G
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For further information please visit the company's investor web site: http://ir.allegiantair.com
Reference to the Company's web site above does not constitute incorporation of any of the information thereon into this press release.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding fleet growth, delivery and service dates for aircraft under contract and the cost to ready these aircraft for service, as well as other information regarding the aircraft under contract. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "anticipate," "intend," "plan," "estimate", "project", "hope" or similar expressions.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. These risk factors include, without limitation, the effect of the economic downturn on leisure travel, increases in fuel prices, terrorist attacks, risks inherent to airlines, demand for air services to our leisure destinations from the markets served by us, our ability to implement our growth strategy, possible unionization efforts, our fixed obligations, our dependence on our leisure destination markets, our ability to add, renew or replace gate leases, our competitive environment, problems with our aircraft, dependence on fixed fee customers, our reliance on our automated systems, economic and other conditions in markets in which we operate, governmental regulation, increases in maintenance costs and insurance premiums and cyclical and seasonal fluctuations in our operating results.
Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
SOURCE Allegiant Travel Company
