Allegiant's move to A319s 'credit positive': Moody's

By:  
London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Moody's Investors Service believes recent fleet changes at Allegiant Travel Company will have a favourable impact on the Las Vegas-based carrier's credit profile.

The ratings agency says in a research note the introduction of Airbus A319 aircraft is "credit positive" because these aircraft have a "lower projected per passenger cost relative to that of the McDonnell Douglas MD-80 aircraft that comprise the company's current fleet."

Low-cost carrier Allegiant Air plans to add 19 A319s to its fleet, and will begin taking delivery of the aircraft from the fourth quarter this year through 2015.

GE Capital Aviation Services will lease nine aircraft to the carrier, while the other 10 will be purchased eventually after five-year capital leases from Cebu Pacific.

The first two Allegiant A319s will enter into service in the second quarter of 2013, and all 19 A319s will be in service in the third quarter of 2015.