Allegiant to purchase 18 MD-80s

surreal1221

surreal1221

Well-Known Member
Expects to Operate 13 of 18 Aircraft


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.

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.
 
surreal1221 said:
Expects to Operate 13 of 18 Aircraft


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.

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.
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In my best mortal combat voice "PILOT SHORTAGE"!


:sarcasm:
j/k
:D
Good for Allegient, one of my bro's from AMF is over there and he likes it.
 
Hootie said:
In my best mortal combat voice "PILOT SHORTAGE"!


:sarcasm:
j/k
:D
Good for Allegient, one of my bro's from AMF is over there and he likes it.
Click to expand...

Allegient seems to be the "next step" for AMFers in the last few years. I was always afraid if I ended up there for some reason (when I was still working, that is), that I'd be stuck there for the duration. No union and not a great pay scale, and more importantly day trips out of Vegas? I mean that's awesome if you live in Vegas but...Vegas?
 
jtrain609 said:
Allegient seems to be the "next step" for AMFers in the last few years. I was always afraid if I ended up there for some reason (when I was still working, that is), that I'd be stuck there for the duration. No union and not a great pay scale, and more importantly day trips out of Vegas? I mean that's awesome if you live in Vegas but...Vegas?
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You really were afraid of this? I'd be more afraid of surviving Ameriflight or being suckered away from flying by southeastern michigan law schools.
 
jtrain609 said:
Allegient seems to be the "next step" for AMFers in the last few years. I was always afraid if I ended up there for some reason (when I was still working, that is), that I'd be stuck there for the duration. No union and not a great pay scale, and more importantly day trips out of Vegas? I mean that's awesome if you live in Vegas but...Vegas?
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SFB base. I've had my stuff in for a while over there, and I'll probably update it this week (along with the half a million other guys). I'm not sure I'd stay there long term, but I'd do it in a heartbeat to get out of this hell hole....
 
ATN_Pilot said:
I don't think that will be the case for much longer.
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Bastard, beat me.

Anyway. . .

They seem to have a business model, that while it is significantly non-traditional, is working very well for them. Ignoring the realities of the labor cog within the machine.

What other company can purchase 18 airplanes - with cash? [rhetorical]

Niche market(ing), ample cash supply, happy (relative) employees, I must commend them for being successful.

Right now, I'll take most any forms of movement necessary to get the exhaust mechanism flowing again.
 
jtrain609 said:
Allegient seems to be the "next step" for AMFers in the last few years. I was always afraid if I ended up there for some reason (when I was still working, that is), that I'd be stuck there for the duration. No union and not a great pay scale, and more importantly day trips out of Vegas? I mean that's awesome if you live in Vegas but...Vegas?
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I agree. I really wanted to go there for the IWA base which wouldve been awesome, but with these niche bases things could change overnight. Its good while it lasts.
 
surreal,

The MD-80 isn't exactly the gold standard of airliners anymore. They're noisy, thirsty beasts and can generally be had for a song.

All you have to do is be willing to foot the fuel bill.
 
Green Hall said:
surreal,

The MD-80 isn't exactly the gold standard of airliners anymore. They're noisy, thirsty beasts and can generally be had for a song.

All you have to do is be willing to foot the fuel bill.
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I guess the other 60-or-so MD-80s that make up the rest of their armada could be sold to buy a couple of 737s. Still takes two pilots and three attendants in back, though. :)
 
Green Hall said:
surreal,

The MD-80 isn't exactly the gold standard of airliners anymore. They're noisy, thirsty beasts and can generally be had for a song.

All you have to do is be willing to foot the fuel bill.
Click to expand...

Thanks. Appreciate the information. Had no clue they were noisy, thirsty beasts, and could be had for a song. None whatsoever.
 
I don't want to sound too optimistic here, and this comment isn't specific to this thread, but I'm really starting to notice a good, upward trend in the industry. Yes, it is happening slowly, and yes there is still bad news coming out too, but it just seems like slowly but surely things are beginning to turn a corner at least on the job availability front. I fear I might be speaking too soon, but it feels like we've more or less hit the bottom.
 
Green Hall said:
surreal,

The MD-80 isn't exactly the gold standard of airliners anymore. They're noisy, thirsty beasts and can generally be had for a song.

All you have to do is be willing to foot the fuel bill.
Click to expand...

For the price difference between a new 737 or Airbus and the old McDonald Douglas you can put a lot of fuel into a MD-80.

Would you have more money if you paid $500 for an El Camino with a V-8, or would you have more money if you bought some top-of-the-line Hybrid for $35k?
 
WacoFan said:
For the price difference between a new 737 or Airbus and the old McDonald Douglas you can put a lot of fuel into a MD-80.
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Exactly my point. People here seem to be surprised AGT can afford to pay cash for a bunch of planes otherwise destined for Goodyear.
 
Mad Dogs don't burn THAT much fuel.

Plus the acquisition costs are low and, for the most part, there are many 80's on the market with somewhat low cycles.
 
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