Allegiant Travel Co on Thursday tried to ease concerns among investors that a plan to add 50 new Boeing Co 737 MAX planes to its fleet of used Airbus jets would drive up operating costs.
The first Boeing 737 MAX 7 is unveiled in Renton, Washington, U.S. February 5, 2018. REUTERS/Jason Redmond/File PhotoSEATTLE/CHICAGO, Jan 6 - Allegiant Travel Co on Thursday tried to ease concerns among investors that a plan to add 50 new Boeing CoThe Las Vegas-based company, which runs an ultra-low-cost carrier, said the $5.5 billion jet deal was part of its long-term growth strategy and would result in more than $300 million in savings.
The Boeing order marks a stark change of approach by the fast-growing domestic carrier, which had previously relied mainly on used Airbus aircraft. The ultra-low-cost carrier aims to seize on post-pandemic leisure travel demand by adding more than 400 routes. It is looking to have more than 250 aircraft by the end of this decade.
Gallagher said the prospect of running a fleet of more than 100 used planes was no longer tenable. "No airline in the world is run that way - you just can't do it," he said.
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