Allegiant And ALAFCO Announce Lease Agreement For Thirteen Airbus A320 Aircraft

LAS VEGAS, June 13, 2017 /PRNewswire/ -- Allegiant (NASDAQ: ALGT) today announces an agreement with ALAFCO Aviation Lease and Finance Company to lease 13 Airbus A320 aircraft. This agreement is another important step towards Allegiant's planned transition to an all-Airbus fleet by 2019.

"With the opportunistic acquisition of 13 aircraft, this agreement sets us right on pace toward our goal of achieving a single fleet type by 2019," said Maurice J. Gallagher, Jr., Allegiant chairman and chief executive officer. "The fleet transition will not only bring the benefit of operating efficiencies in training, scheduling, maintenance and more, but will also mean key economic advantages through greater fuel efficiency and higher seat capacity. This puts us in an ideal position for the future: to continue offering travelers the industry's best fares, while at the same time increasing reliability."

The 13 8-year-old Airbus aircraft acquired via this agreement are expected to enter service with Allegiant beginning in the first quarter of 2018, configured with 186 seats and the CFM56-5B engine type. The agreement includes an option to purchase at the end of the lease term.

ALAFCO chief executive officer and vice-chairman Ahmad Alzabin stated, "This agreement marks a milestone achievement for ALAFCO with its inaugural entrance into the North American market, and we are pleased to announce Allegiant as ALAFCO's first customer in the United States." Mr. Alzabin added, "With the recent establishment of ALAFCO's Irish subsidiary, we expect further penetration into the North American market." The 13 Airbus A320 aircraft have been placed on a long-term lease with Allegiant for a period of 12 years.

This transaction brings Allegiant to a total of 92 Airbus aircraft either in service or committed for future delivery.