Late last month Allegiant announced plans to acquire twelve new Airbus A320s. Airlines make fleet announcements often, but this one was of particular significance for a number of reasons.
Allegiant’s order for new A320s:
First, this order for brand-new planes, direct from Airbus, signals a change in standard operating procedure for the Las Vegas-based ultra-low-cost carrier (ULCC). Historically, Allegiant had shirked the trend of its ULCC peers, both domestically and abroad, ofÂ adopting fuel-efficient, modern aircraft. Instead, the airline has hadÂ a well-known preference for less costly mid-to-late life secondhand McDonnell Douglas MD-80 series planes. Cheaper planes equate to lower fares, and higher margins. This concept is not new; many budget carriers have used that model and benefited greatly from it (some have not). Allegiant is no exception. The airline is so well known for this preference, in fact, that few realize that the airline began acquiring Airbus aircraft in 2013. I myself was surprised to learn that the number ofÂ available seat miles flown by Allegiant’s Airbus fleet is nearly tied with that of their larger McDonnell Douglas fleet. Jude Bricker, Allegiant Travel Company senior vice president of planning, confirms expectations that the Airbus fleet will tip the scales by the close of 2016.
Older, used Airbus planes are known for being attractively priced. This is something Allegiant saw as early as 2012 when the airline announced plans to acquire its first batch of A319s. Then-President Andrew C. Levy stated,Â “A319 asset values have significantly declined and now mirror the environment we saw when we first began buying MD-80s.” While Airbus has focused much of its attention on pushing its newer and higher pricedÂ NEO (new engine option) models, it seems existing Airbus variants and future current engine option (CEO) deliveries are well positionedÂ toÂ become as ubiquitous as the much loved, budget friendly, long-lived MD-80s they are slowly but steadily replacing.
Allegiant’s newest (employee-approved) livery iteration:
Alongside this announcement, the airlineÂ unveiledÂ plans for an incremental livery modification. Two final contendersÂ were chosen, and employees were given an option to vote on which would be adopted.
Which did the employees choose?