Allegiant Air Makes Further Reductions In Expected Boeing 737 MAX 8 Deliveries

While certain airlines, such as United, have reported increased utilization of Boeing’s 737 MAX on specific routes within their operational network, other carriers, including Allegiant, have expressed concerns regarding the performance of Boeing’s next-generation 737 program. A detailed analysis of this issue is warranted.

The Allegiant 737 MAX order and why it happened

In January 2022, Allegiant Air ordered 50 Boeing 737 MAX aircraft, which included 26 MAX 8-200s. The MAX 8-200 is the specific version used by Ryanair, a prominent Irish low-cost airline.

Ryanair’s fleet is steadily growing with the delivery of existing Boeing 737 MAX orders. Photo: Ryanair

According to Ch-aviation, Allegiant Air currently operates a fleet of 131 aircraft. This fleet is composed of 35 Airbus A319-100s and 96 Airbus A320-200s. The average age of the A319-100 aircraft is 19.0, while the average age of the A320-200 aircraft is 15.2.

This indicates that the fleet is aging overall. Furthermore, the A320ceo family, which includes the A319 and A320, isn’t as fuel efficient as the second-generation A320neo family or 737 MAX lineup.

Despite being an

Airbus customer

with a fleet of pre-owned airframes, the carrier surprisingly opted for the 737 MAXs instead of the re-engined version the European manufacturer offers. However, this decision is still expected to result in significant fuel cost savings for the airline.

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Allegiant Air is a low-cost American airline specializing in flying to underserved airports.

Why is Allegiant revising the number of aircraft delivered this year?

The American holiday airline was initially scheduled to receive six aircraft from Boeing this fall, but the delivery has now been revised to just four. This alteration comes after a one-year delay, as the initial airframe deliveries were anticipated in 2023.

All of these delays can be explained through two significant issues affecting Boeing’s production (but also that of all OEMs at the moment) :

A slow supply chain

The ongoing issue is impacting manufacturers worldwide and extends beyond the aviation sector. Despite the resumption of operations in China, a major source of supplies, global trade continues to face logistical challenges due to geopolitical tensions.

Maritime and air shipments must take alternative routes to circumvent conflict zones, affecting delivery timelines. For instance, naval vessels are avoiding areas near the Red Sea, while air freight is adjusting routes to avoid airspace over Russia and Ukraine.

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Airbus Focuses On Delivery Ramp-Up And Supply Chain Management In Half-Year Report

The company had net orders for 310 commercial airplanes and delivered 323 planes in the first half.

Boeing’s quality control issues.

An article by The Guardian, a prominent UK newspaper, reported that an extension of the 737 MAX production cap was announced over two months ago, in late May 2024.

This announcement coincided with regulators finalizing security checks in the aftermath of the Alaska Airlines 737 MAX 9 incident earlier this year.

So, when will Allegiant get their 737 MAXs?

According to Ch-aviation, the airline anticipates the arrival of its initial B737-8-200 in September. However, it is preparing for an extended delivery schedule and projects a reduced rate of deliveries in 2025 and 2026, alleviating Allegiant’s short- and medium-term capital requirements.

The chief financial officer, Robert Neal, provided insight into the latest developments regarding the carrier’s initial aircraft certification process. He mentioned to the aviation analysis website that the US Federal Aviation Administration (FAA) decided to keep the certification process in-house instead of delegating it to Boeing. Neal expressed optimism about the progress, indicating that they anticipate the delivery of the aircraft in approximately 30 days.