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SAS sells 18 MD-80 aircraft to Allegiant Air

5-Jan-2010 8:41 AM

Allegiant Travel Company and Scandinavian Airlines System (SAS) signed an agreement on 30-Dec-2009, covering the purchase of 18 MD-80s by Allegiant from SAS. Allegiant will pay for the aircraft with cash. Delivery will commence in Jan-2010 and continue over the first three quarters of 2010. This is the fifth aircraft transaction Allegiant has entered with SAS. Once the deliveries to Allegiant Air are completed, SAS will have 24 MD80s remaining in fleet, of a total of 191 aircraft in the group. The transaction will reduce the SAS Group's financial net debt by approximately EUR19.7 million. SkyWorks Leasing acted as SAS’ exclusive remarketing agent and advisor on both transactions. The 18 purchased aircraft comprise two groups:

  • 13 MD-82/3s, which Allegiant Air expects to place into service by the end of 2011. Along with a previously-announced separate purchase of two MD-82/3 aircraft (also from SAS) for delivery in 1Q2010, this transaction satisfies essentially all of Allegiant's planned fleet growth through the end of 2011. Allegiant does not plan further aircraft purchases, and expects to operate 52 aircraft by the end of this year, up from the current 46, and as many as 60 by the end of 2011.
  • Five MD-87 aircraft which Allegiant will not operate but instead plans to use as a source of spare engines and other spare parts. [more - Allegiant Air] [more - SkyWorks Leasing] [more - SAS]