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Allegiant Air enters into nine lease agreements with GECAS covering nine A319 deliveries

31-Aug-2012 1:16 PM

Allegiant Travel Co stated (30-Aug-2012) Allegiant Air, as of 27-Aug-2012, entered into nine separate lease agreements for the lease of nine A319 aircraft from GE Capital Aviation Services. The company will guarantee the leases. Each of the leases will be for an eight-year term, with rental obligations paid on a monthly basis. The company currently expects to receive delivery of the aircraft in accordance with the following schedule:

  • 4Q2012: One aircraft;
  • 1Q2013: One aircraft;
  • 2Q2014: One aircraft;
  • 4Q2012: One aircraft;
  • 1Q2015: One aircraft;
  • 2Q2015: Four aircraft.

The company estimates, based on the delivery schedule referenced above, the total obligations for nine aircraft will aggregate approximately USD125 million over an 11-year period, with aircraft delivery dates, interest rate fluctuation and maintenance adjustments affecting the actual amounts and timing of the payments. [more - original PR]