LAS VEGAS, Dec. 19, 2012 (GLOBE NEWSWIRE) -- Allegiant Travel Company (Nasdaq:ALGT) today announced its intention to purchase up to nine used A320 aircraft. The average age of these aircraft at delivery is expected to be 12 years with a configuration of 177 seats. The aircraft have been most recently operated by Iberia.
"The A320 aircraft type is a perfect complement to the smaller A319 and will enable us to continue cost effective growth for years to come," said Andrew C. Levy, Allegiant President. "These transactions represent a tremendous opportunity to purchase a sizeable fleet of sister-ships with CFM powered engines, the same engine type as our A319s, at very attractive prices. Finding up to nine aircraft of this pedigree available for purchase is unusual in our experience. Historically it has been difficult to find owners willing to sell quality assets at this point in their life cycle. Our cash reserves and strong balance sheet continue to provide us a unique ability in the used aircraft space to move on these attractive opportunities."
"We do not expect a material change to our 2013 capacity as we will vary MD-80 utilization appropriately. As with the earlier acquisition of A319s, we are committed to only acquire aircraft at values that support our existing business model of relatively low fleet utilization," concluded Levy.
Seven aircraft are expected to be purchased in 2013 and two in 2014. With the addition of this transaction, Allegiant is now expecting 2013 total CAPEX to be between $270 and $280 million versus the previous guidance of $150 to $160 million. The company expects to finance the purchase of these aircraft with debt. Allegiant expects to place the first A320 into service late in the third quarter of 2013 and all nine aircraft are expected to be in service by the end of 2014. No additional MD-80 retirements are planned as a result of this transaction.
Allegiant, Travel is our deal.®
Las Vegas-based Allegiant Travel Company® (Nasdaq:ALGT) is focused on linking travelers in small cities to world-class leisure destinations. Through its subsidiary, Allegiant Air, the company operates a low-cost, high-efficiency, all-jet passenger airline, and its subsidiary Allegiant Vacations offers other travel-related products such as hotel rooms, rental cars, and attraction tickets through its website, allegiant.com. The company has been named one of America's 100 Best Small Companies by Forbes Magazine for four consecutive years. For downloadable press kit, including photos, visit: http://gofly.us/SQmY7O.
The Allegiant Travel Company logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8305
Note: This news release was accurate at the date of issuance. However, information contained in the release may have changed. If you plan to use the information contained herein for any purpose, verification of its continued accuracy is your responsibility.
For further information please visit the company's investor website: http://ir.allegiantair.com
Reference to the Company's website above does not constitute incorporation of any of the information thereon into this news release.
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include, among others, our ability to consummate announced transactions, timing of aircraft deliveries and into-service dates, future capital expenditures and other statements about our future performance or strategic plans. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words "believe," "expect," "guidance," "anticipate," "intend," "plan," "estimate", "project", "hope" or similar expressions.
Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in the forward-looking statements. Important risk factors that could cause our results to differ materially from those expressed in the forward-looking statements generally may be found in our periodic reports filed with the Securities and Exchange Commission at www.sec.gov. Any forward-looking statements are based on information available to us today and we undertake no obligation to update publicly any forward-looking statements, whether as a result of future events, new information or otherwise.
Source:Allegiant Travel Company