Allegiant Air has exercised options to purchase six Boeing 737 MAX 8 aircraft under its 2021 agreement with Boeing, lifting its firm order to 56 jets. The aircraft are scheduled for delivery in 2028 and have a combined list price of more than $720 million.
What’s in the order?
Allegiant’s parent company, Allegiant Travel Company, disclosed the deal in an 8-K report filed with the United States Securities and Exchange Commission (SEC) on Oct. 23. The list price equates to roughly $120 million per aircraft, though carriers typically pay less after discounts. The aviation consultancy IBA estimates the market value of the six jets at about $351 million, based on their delivery year.
Under the agreement, Allegiant now holds 56 firm orders, 22 of which have already been delivered. Options remain for a further 74 jets.
A Fleet in Transition After Sun Country
The original deal, signed on Dec. 31, 2021, covered 50 firm aircraft and 50 options, with deliveries planned between 2023 to 2025. Allegiant has since swapped part of the order from the 737-7 to the high-density 737-8-200, adding 30 additional options. It has also agreed with Boeing to extend the delivery schedule by two years.
The order follows Allegiant’s acquisition of Sun Country Airlines at roughly $1.5 billion, which was completed on May 13.
As of Jun. 30, Allegiant operated 77 Airbus A320s, 28 A319s and 19 737-8-200s, while Sun Country flew 44 737-800s and three 737-900ERs. The two airlines will operate separately until they obtain a single FAA certificate.
Allegiant had said before the deal closed that it was reviewing its MAX options in light of the combined network and Sun Country’s older-generation 737s. These six are the first options under the agreement to become firm orders.
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