Allegiant Travel Co. (Nasdaq: ALGT) is purchasing six Boeing 757 aircraft to begin service to Hawaii, the company announced Friday.
The company plans to spend between $75 million and $90 million for the aircraft, which it will receive during the next 12 months. Plans call for two to be operational by fourth-quarter 2010, with two more operating by early 2011 and the remaining two by early 2012. Regulatory requirements still must be met, according to an Allegiant news release.
The six planes have been in service with a single, unnamed European company since original delivery from Boeing, and all are equipped for extended twin-engine operations as required for long overwater flights.
Allegiant said in the release that it is able to pay cash for the planes but will likely finance a portion of the purchase.
The company said the planes are being purchased specifically for flights to Hawaii, which cannot be reached with the company's current MD-80 fleet.
"Hawaii is the most prominent U.S. leisure destination currently unserved by Allegiant, and our small-city customers have been requesting this service," Chairman and CEO Maurice Gallagher Jr. said in the release. "We are very optimistic about our ability to exploit the large third-party ancillary revenue opportunity we believe exists in Hawaii. We expect the sale of hotels, rental cars, and many attractions and activities popular with Hawaii visitors will provide a very meaningful contribution to the success of the service.”
The company did not say which airports it plans to serve with the new planes. Springfield-Branson National Airport spokesman Kent Boyd said the airport is equipped to handle any commercial plane, but he said it's not clear whether Springfield would be too far from Hawaii - roughly 3,800 miles - for nonstop flights.
Allegiant stock closed Friday at $52.91, compared to a 52-week range of $32.07–$57.52.
