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Allegiant Air sees plenty of opportunities to source used Airbus narrowbodies - on its own terms

Analysis

Alleigant Air during the last three years has capitalised on opportunities to acquire used Airbus narrowbodies at favourable costs; in some cases striking unique deals to bolster the number of the jets in its fleet.

A solid balance sheet allows Allegiant to quickly seize on aircraft acquisitions that it deems favourable, including an agreement forged in 2015 to purchase three A320s from defunct Hamburg Airways. Allegiant expects those types of deals to surface periodically in the future. Those predictions should materialise given that next generation Airbus narrowbody deliveries start in 2015, which should in some cases result in favourable rates for existing models.

The pattern of used Airbus aircraft deals Allegiant has brokered during the last couple of years shows the airline aims to be opportunistic in the market while also willing to walk away from agreements that do not meet its financial criteria.

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