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Wednesday, September 28, 2022

Allegiant Air to order 50 Boeing 737 MAX

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People familiar with the subject told Reuters on January 4, 2022, that Allegiant Air is preparing to expand its fleet by acquiring 50 Boeing 737 MAX aircraft worth $5 billion at list price.

The airline has been in negotiations with both Airbus and Boeing about ordering new planes in the future. Allegiant (ALGT) was also debating between the Airbus A220 and the Boeing 737 MAX 7 aircraft, according to Reuters.

Allegiant (ALGT) will switch suppliers and perhaps replace its older Airbus fleet of A319 and A320 aircraft if a large purchase is finalized.

According to Planespotters.net, Allegiant’s (ALGT) fleet currently consists of 121 Airbus-built aircraft, including 86 Airbus A320s and 35 Airbus A319s. The fleet of the airline is an average of 14.8 years old.

These kind of supply adjustments have become more regular in recent months. KLM Royal Dutch Airlines, a long-time Boeing customer, has chosen Airbus A320neo aircraft over Boeing 737 MAX jets for future medium-haul aircraft supply.

Meanwhile, Qantas has decided to replace its existing domestic fleet with Airbus rather than Boeing.

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