Allegiant exercises Boeing 737 MAX options in fleet deal expansion
Allegiant is expanding its narrowbody fleet plan by exercising options for six Boeing 737-8 aircraft under a 2021 purchase agreement. The jets are scheduled for delivery in 2028, extending the airline's existing order pipeline as it retains options for dozens more aircraft.
Highlights
- Allegiant Air exercised options to buy six Boeing 737-8 aircraft, list priced at over $720 million, for 2028 delivery.
- Allegiant now has 56 firm orders under its Boeing 2021 agreement, with 22 planes already delivered and 74 purchase options remaining.
- IBA estimates the market value of the six aircraft at $351 million, significantly below their combined list price.
Order terms and delivery schedule
As reported by Reuters, Allegiant Air said on Friday it had exercised options to buy six Boeing 737-8 aircraft under its 2021 agreement with Boeing.The company said the planes carry a combined list price of more than $720 million and are scheduled for delivery in 2028.
Fleet pipeline and valuation outlook
Following the latest option exercise, Allegiant has 56 firm aircraft under the agreement, including 22 that have already been delivered. The carrier also still holds purchase options for another 74 jets.Based on the delivery year, aviation analytics consultancy IBA estimates the market value of the six aircraft at about $351 million. That comparison points to a gap between list pricing and estimated market value for the planned deliveries.
United Nigeria Airlines’ plan to raise up to N20 billion through Series 1 and 2 commercial paper issuance outlined how the carrier intends to fund fleet expansion and increase operational capacity. Our earlier coverage noted that the proceeds were earmarked to strengthen its domestic network and, if successful, could intensify competition in Nigeria’s local air travel market.