LAS VEGAS, Sept. 13 /PRNewswire/ -- Allegiant Travel Company (Nasdaq: ALGT) today announced it is beginning a project to add 16 seats to its fleet of 150-seat MD-80 series aircraft, bringing the total number of saleable seats to 166 on each of these aircraft. The company currently operates 48 such aircraft and owns nine additional MD-80 aircraft, which it plans to introduce into service in 2011 and 2012. Allegiant also operates three 130-seat MD-87 aircraft which will not be re-configured.
Allegiant expects to invest up to $50 million in capital under this project, which includes substantial cabin re-design work such as removal of galleys. The first aircraft is expected to be converted in the third quarter of 2011, with completion of the last aircraft by the end of 2012.
"These added seats will allow us to grow our capacity with the least amount of risk," Andrew C. Levy, Allegiant President, said. "This project effectively increases our capacity by 11 percent while lowering our cost per seat. In addition, we expect to fund this through internally generated cash-flow."
"This new investment in the MD-80 fleet is a sign of our commitment to the aircraft for years to come. It is unquestionably the best aircraft for our business for flights of up to four hours of duration," concluded Levy.
The additional seats will also result in job growth at Allegiant since a fourth flight attendant, up from the current staff of three, will be required on the 166-seat configuration aircraft.
About the Company
Las Vegas based Allegiant Travel Company (NASDAQ: ALGT), is focused on linking travelers in small cities to world-class leisure destinations such as Fort Lauderdale, Fla., Las Vegas, Los Angeles, Phoenix-Mesa, Orlando, Fla. and Tampa/St. Petersburg, Fla. Through its subsidiary, Allegiant Air, the Company operates a low-cost, high-efficiency, all-jet passenger airline offering air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. In 2010, Allegiant was ranked number one for low-cost carriers in Aviation Week's Top Performing Airline study and ranked 25 on FORTUNE magazine's Fastest-Growing Companies list. ALGT/G
Under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, statements in this press release that are not historical facts are forward-looking statements. These forward-looking statements are only estimates or predictions based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include our statements regarding the cost and timing of the aircraft reconfiguration work to be completed and the generation of additional revenues. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as t he words "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," "hope" or similar expressions.
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SOURCE Allegiant Travel Company