Allegiant Air Orders Up to 100 737 MAX Jets

Rhea-AI Summary

Boeing (BA) announced a landmark order from Allegiant Air for 50 737 MAX jets, including options for 50 more, marking Boeing's first ultra-low cost carrier (ULCC) deal in the U.S. This order includes the 737-7 and 737-8-200 models, which offer lower seat-mile costs and high dispatch reliability. The new jets promise a 20% reduction in fuel use and carbon emissions compared to Allegiant's current Airbus fleet. Boeing will assist Allegiant with entry-into-service support and operational efficiency through its digital services.

Positive

• Allegiant orders 50 737 MAX jets, with options for 50 more, enhancing Boeing's market presence.
• New 737 models are expected to reduce fuel and carbon emissions by 20%, aligning with sustainability goals.
• Boeing's partnership with Allegiant ensures smooth integration of new aircraft into operations, which may lead to improved efficiency.

Negative

• None.

SEATTLE, Jan. 5, 2022 /PRNewswire/ -- Boeing [NYSE:BA] and Allegiant Air today announced an order for 50 737 MAX jets, with options for 50 additional airplanes. In Boeing's first U.S. ultra-low cost carrier (ULCC) deal, Allegiant selected two models – the 737-7 and 737-8-200 – in the 737 MAX family, which provide the lowest seat-mile costs for a single-aisle airplane and high-dispatch reliability.

"Our approach to fleet has always been opportunistic, and this exciting transaction with Boeing is no exception," said Maurice J. Gallagher, Jr., Allegiant chairman and CEO. "While the heart of our strategy continues to center on previously-owned aircraft, the infusion of up to 100 direct-from-the-manufacturer 737s will bring numerous benefits for the future – including flexibility for capacity growth and aircraft retirements, significant environmental benefits, and modern configuration and cabin features our customers will appreciate."

With commonality and improved fuel efficiency, the 737 MAX family enables airlines to optimize their fleets across a broad range of missions. The 737-7 provides low-operating costs that enable carriers to open new routes with less economic risk, and the larger 737-8-200 offers added revenue potential and is right-sized for ULCC market expansion. Compared to Allegiant's current fleet, the new 737 models will reduce fuel use and carbon emissions by 20%.

"We are thrilled that Allegiant has selected Boeing and the 737 MAX as they position themselves for future growth, improved efficiency and operational cost performance." said Stan Deal, Boeing Commercial Airplanes president and CEO. "This deal further validates the economics of the 737 MAX family in the ULCC market and we're excited to stand alongside Allegiant as they integrate these new airplanes into their fleet."

Boeing and Allegiant will partner on entry-into-service support, enabling a smooth transition as the carrier adds the 737 into its operation. Allegiant will also utilize a suite of Boeing Global Services digital tools to further enhance operational efficiency. Allegiant currently operates a fleet of 108 Airbus A319 and A320 airplanes. 

As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing's diverse team is committed to innovating for the future and living the company's core values of safety, quality and integrity. Learn more at www.boeing.com.

Contact
Joe Loeffler
Boeing Communications
425-306-2145
Joseph.o.loeffler@boeing.com 

Jessica Kowal
Boeing Media Relations
206-660-6849
jessica.m.kowal@boeing.com 

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SOURCE Boeing

FAQ

What is the significance of Boeing's deal with Allegiant Air on January 5, 2022?

Boeing secured an order for up to 100 737 MAX jets from Allegiant Air, marking a key entry into the U.S. ultra-low cost carrier market.

How many jets did Allegiant Air order from Boeing?

Allegiant Air ordered 50 Boeing 737 MAX jets with options for an additional 50.

What models of the 737 MAX were selected by Allegiant Air?

Allegiant selected the 737-7 and 737-8-200 models from Boeing's MAX family.

What are the expected benefits of Allegiant's new Boeing 737 MAX jets?

The new jets are expected to provide lower operating costs, improved fuel efficiency, and reduced carbon emissions by 20%.

How does this deal affect Boeing's stock performance?

The order may positively impact Boeing's stock by enhancing revenue and validating the demand for its 737 MAX family in the ULCC market.