Thought this was interesting:
http://www.wifr.com/home/headlines/17463989.html
(LAS VEGAS)-- Allegiant Travel Company (ALGT: NASDAQ) announced today its wholly-owned subsidiary, Allegiant Air, LLC, has agreed to purchase six MD-80 aircraft and three spare engines currently on lease to FlyNordic, a wholly-owned subsidiary of Norwegian Air Shuttle. The seller is a subsidiary of Finnair, the original operator of the aircraft.
“We are pleased to announce the purchase of additional high-quality MD-80 aircraft,” Maurice J. Gallagher, Jr., CEO and Chairman, said. “Our strong balance sheet and industry-leading profit margins enable us to grow and pursue many opportunities which we believe can enhance the overall profitability of our business. Our strong financial condition permits us to purchase aircraft for cash.”
Gallagher continued, “Our financial strength is particularly notable in light of recent closures of several other airlines. While Allegiant is not immune to high fuel prices and a softer economy, our business model emphasizing low fixed costs and the generation of ancillary revenues has proven robust during these more challenging times.”
As of Dec. 31, 2007, Allegiant is one of only two U.S. airlines that have more cash than debt. Additionally, Allegiant’s profitability for 2007 led all publicly traded U.S. legacy and low-cost carriers, as measured by operating and pre-tax margin. 2007 was Allegiant’s fifth consecutive profitable year.
Four of the newly purchased aircraft are expected to enter revenue service for Allegiant in the first and second quarter of 2009 and the remaining two aircraft are expected to enter revenue service in the first quarter of 2010. Allegiant expects to receive approximately $5.5 million in lease revenue from the six aircraft, but expects to incur maintenance obligations of a similar dollar amount prior to the end of the leases. A portion of these maintenance obligations may be funded by supplemental rent received under the lease.
Allegiant’s current fleet consists of 36 MD-80 aircraft in service and is expected to grow to 37 by the end of the month.
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 Las Vegas, Phoenix, Fort Lauderdale, Fla., 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.