Skyworks arranges sale of 20 MD80 aircraft
04-Jan-2010 In addition to a previously executed purchase agreement between Allegiant Air, LLC, the Las Vegas-based operator, and Scandinavian Airlines System, Denmark-Norway-Sweden ("SAS"), Allegiant Travel Company, (the parent company of Allegiant Air (NASDAQ: ALGT)) has agreed to purchase an additional 18 MD82/83/87 aircraft from SAS.
Delivery of the aircraft will commence in January 2010 and is scheduled to be completed in July 2010. Allegiant Air plans to gradually add the 13 MD82/83 aircraft to its current fleet of 46 MD80 aircraft, including 13 sister ships, previously purchased from SAS. The five MD87s will be used as a source of spare engines and other spare parts.
This mile-stone transaction is a significant step in SAS' MD80 phase-out and fleet reduction plan announced in early 2009. Once the deliveries to Allegiant Air are completed, SAS will have 24 MD80s remaining in its main-line schedule. SkyWorks Leasing, LLC has acted as SAS' exclusive remarketing agent and advisor on both transactions.