Boeing Commercial Airplanes will supply up to 100 new 737 MAX aircraft to Las Vegas-based Allegiant Air, an order that could be worth $10 billion to $12 billion, depending on the particular choices of aircraft and the discounts applied. Neither the supplier nor the customer has detailed the financial terms of the deal, which involves firm order for 50 737-7 and 737-8-200 jets, plus options for 50 more.
The deliveries will start in 2023 and continue through 2025.
The twin-engine, narrow-body 737 MAX remains Boeing’s best-selling aircraft, despite a 20-month halt in production and deliveries during the investigation of two accidents that killed a total of 346 passengers and crew members, in October 2018 and March 2019. Since the aircraft regained airworthiness certification by the Federal Aviation Administration in November 2020 (followed by others in the EU, Canada, Brazil, and more recently in China) Boeing drew orders for 319 new 737 MAX jets in 2021.
The Allegiant Air orders are the first 737 MAX bookings for 2022.
"Our approach to fleet has always been opportunistic, and this exciting transaction with Boeing is no exception," stated Allegiant chairman and CEO Maurice J. Gallagher, Jr. "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."
Allegiant Air operates scheduled and charter flights and is wholly owned by Allegiant Travel Co. Currently, the airline operates a fleet of 121 Airbus A319s and A320s.
The 737 MAX 7 is the smallest version of the series, with seating for up to 138 passengers. The 737 MAX 8-200 can seat up to 200 passengers in a single-class configuration.
Boeing emphasizes the low-operating costs and fuel-efficiency of the 737 MAX series; compared to the current Allegiant fleet, it said, the new aircraft would 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," stated 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."
