ALLEGIANT AND ALAFCO ANNOUNCE LEASE AGREEMENT FOR THIRTEEN AIRBUS A320 AIRCRAFT
LAS VEGAS. June 9, 2017
Allegiant (NASDAQ: ALGT) today announces an agreement with ALAFCO Aviation Lease and Finance Company to lease thirteen Airbus A320 aircraft. This agreement is another important step towards Allegiant’s planned transition to an all-Airbus fleet by 2019.
“With the opportunistic acquisition of thirteen aircraft, this agreement sets us right on pace toward our goal of achieving a single fleet type by 2019,” said Maurice J. Gallagher, Jr., Allegiant chairman and chief executive officer. “The fleet transition will not only bring the benefit of operating efficiencies in training, scheduling, maintenance and more, but will also mean key economic advantages through greater fuel efficiency and higher seat capacity. This puts us in an ideal position for the future: to continue offering travelers the industry’s best fares, while at the same time increasing reliability.”
The thirteen 8-year-old Airbus aircraft acquired via this agreement are expected to enter service with Allegiant beginning in the first quarter of 2018, configured with 186 seats and the CFM56-5B engine type.
ALAFCO chief executive officer and vice-chairman Ahmad Alzabin stated, “This agreement marks a milestone achievement for ALAFCO with its inaugural entrance into the North American market, and we are pleased to announce Allegiant as ALAFCO’s first customer in the United States.” Mr. Alzabin added, “With the recent establishment of ALAFCO’s Irish subsidiary, we expect further penetration into the North American market.” The thirteen Airbus A320 aircraft were previously leased to Saudi Arabian Airlines, and have now been placed on a long-term lease with Allegiant for a period of 12 years.
This transaction brings Allegiant a total of 92 Airbus aircraft either in service or committed for future delivery.
Las Vegas-based Allegiant (NASDAQ: ALGT) is focused on linking travelers in small cities to world-class leisure destinations. The airline offers industry-low fares on an all-jet fleet while also offering other travel-related products such as hotel rooms, rental cars and attraction tickets. All can be purchased only through the company website, Allegiant.com. Beginning with one aircraft and one route in 1999, the company has grown to over 80 aircraft and more than 300 routes across the country with base airfares less than half the cost of the average domestic roundtrip ticket. For downloadable press kit, including photos, visit: http://gofly.us/iiFa303wrtF.
ALAFCO Aviation Lease and Finance Company K.S.C.P., headquartered in Kuwait, is a global aircraft leasing firm, and is listed on the Kuwait Stock Exchange. ALAFCO's main activities include aircraft operating leases, sale and leaseback operations and aircraft lease management services. ALAFCO’s current portfolio consists of 61 Airbus and Boeing aircraft – comprising of A320, B737 and B777 aircraft – leased to 20 airlines in 13 countries across the world. ALAFCO invests in new technology aircraft and currently has a firm order of 115 aircraft comprising of 73 A320neo, 10 A321neo, 12 A350-900XWB and 20 B737max aircraft – scheduled to be delivered from 2017 to 2021.
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