Allegiant Air, an Ultra-Low Cost Carrier in the US, announced that it will lease Airbus A319s from GECAS and purchase more from The Philippines’ Cebu Air.
Update: Here is the Allegiant presentation. This confirms Allegiant is getting the four-exit, 156-passenger airplane.
Notably, Allegiant had this to say:
“The A319 is a new aircraft type for Allegiant, but we otherwise see this as a continuation of our existing business model,” said Andrew C. Levy, Allegiant President. “A319 asset values have significantly declined and now mirror the environment we saw when we first began buying MD-80s.”
Airbus issued this statement:
“A new operator is always great news, but it’s a grand endorsement of the Airbus product line when that operator is a growing low-cost carrier in one of the strongest markets in the world,” said Barry Eccleston, Airbus Americas President and Chief Executive Officer. “Allegiant is hyper conscious of both cost and comfort, and the fact they are turning to the A320 Family proves we have the aircraft the airline knows it needs to fly them successfully into the future.”
Our take:
Allegiant has been operating the MD-80 with 150 seats and is increasing capacity to 160 (or 162). The A319 with wall-to-wall seating is around 150 and somewhat more if a second overwing exit were installed (as with easyJet).
Values of A319s have, as Allegiant noted, been falling in the last few years (so have those for Boeing 737-700s, though not quite as much). Lease rates, according to one lessor, hovers in the $100,000-$120,000 range for older A319s and 737-700s and even less for the oldest ones.
Air Asia will acquire 77% of Batavia Air and the rest of the shares next year.
Air Asia is an A320/A330 operator. Batavia has a mix of A320s, A330s and Boeing 737 Classics. We can’t help but wonder if the flirtation at the Farnborough Air Show between Air Asia’s Tony Fernendes and Bombardier over the CSeries might be tied to Batavia.
Aspire Aviation has another long piece analyzing the two airplanes.
Aerotubropower takes issue with some of Aspire’s analysis in this piece. Aeroturbopower cites publicly available information from Turkish Airlines that is particularly noteworthy in the debate between Airbus and Boeing about the A320 v 737.
The Wall Street Journal reported late today that COPA, Aeromexico and GOL are lining up for the Boenig 737 MAX.
The WSJ article is subscription-only but perhaps it will show up on Google News, as some do.
COPA was one of the original airline “commitments” for the MAX last year, which we reported. We reported that Aeromexico had been expected to announce MAX and 787 orders at the Farnborough Air Show, as its absence was a disappointment to expectations.
GOL, of Brazil, is a long-standing 737 operator but Airbus made a strong push to win this business.
The Seattle Times reported that United Airlines, which last week announced orders for 100 MAXes and 50 737-900ERs, has options that could mean 310 orders from Boeing. United also settled its compensation issues with Boeing over the 787 delays.
Press conference
Jeff Smisek, CEO United
Jim McNerney, CEO The Boeing Co.
Boeing Photo.
Ray Conner, President Boeing Commercial Airplanes
Q&A:
Smisek:
Few little activity today.
Orders today
Airbus: CIT Aerospace, 10 A330 (five previously undisclosed); China Aircraft Leasing, 28 A320ceo, 8 A321ceo–MOU.
Boeing: Avolon (lessors), commitment for 20 737 MAX 8/9 and 10 737-800s. The MAXes are part of the previously announced 1,000 Orders and Commitments, so this portion is not new, but rather a public disclosure.
ATR: Nordic Aviation, one ATR 42-600; Air Lease Corp., two ATR 72-600s; LAO Airlines, two ATR 72-600s, TransAsia, six ATR 76-600s.
Mitsubishi: SkyWest Airlines, LOI for 100 MRJs
CFM: Juneyao Airlines (China), CFM56 for five A321s; Aviation Capital Group, LEAP-1A for 18 A320neo family.
Pratt & Whitney: Finalize previously announced engine selection for GTF for 40 A320neo.