US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness
The US Congress has raised concerns about how inflation rates and cuts in main acquisition programmes could affect the US military.
Allegiant buys 18 MD-80s from SAS
Allegiant Travel Company has signed an agreement to purchase 18 MD-80 aircraft from Scandinavian Airlines System (SAS) in a cash deal.
Allegiant expects to take delivery of the aircraft during the first three quarters of 2010. The 18 purchased aircraft comprise two groups:
• 13 MD-82/3s which the company's airline subsidiary Allegiant Air expects to place into service by the end of 2011. Along with a previously-announced separate purchase of two MD-82/3 aircraft (also from SAS) for delivery in the first quarter of 2010, this transaction satisfies essentially all of the scheduled carrier’s currently expected aircraft growth through the end of 2011. Allegiant Air expects to operate at least 52 aircraft by the end of 2010 and as many as 60 aircraft by the end of 2011. The airline expects that the all-in cost of placing each such aircraft into service, including an allocable portion of the acquisition price and required maintenance, paint, seats, equipment upgrades and other necessary modifications will be less than $4 million per aircraft.
• Five MD-87 aircraft which Allegiant will not operate but instead plans to use as a source of spare engines and other spare parts.
Allegiant president and CFO Andrew Levy commented, "This transaction re-affirms our commitment to the MD-80 aircraft. Our ability to acquire such highly-reliable aircraft at attractive economics permits Allegiant to closely tailor our capacity to demand, a key element of our leisure-oriented business model. We believe these are clearly the best MD-80 aircraft available, having an unbeatable maintenance pedigree and being sister ships to 11 aircraft already in our fleet, thereby enhancing fleet commonality. This is the fifth aircraft transaction Allegiant has entered with SAS, which has, at all times, been a stellar business partner to Allegiant Travel Company. Once this transaction is complete, we do not expect to need further aircraft purchases to fund growth currently planned through the end of 2011."
Allegiant Air currently operates 46 MD-80s, of which all but four are owned.
You may also like
More from Defence Notes
-
![US lawmakers warn that “more military spending is absolutely necessary” to ensure Pentagon’s readiness]()
-
![Can the US overcome Russian and Chinese nuclear capabilities?]()
Can the US overcome Russian and Chinese nuclear capabilities?
Washington’s ageing inventory and the pace Moscow and Beijing have been modernising their capabilities put in check the US Nuclear deterrence.
-
![US FY2024 funding package passes as China closes military capability gap]()
US FY2024 funding package passes as China closes military capability gap
The Pentagon has been operating under temporary funding since October 2023, which has impacted its main acquisition and development programmes, increasing the capability gap between the US and China.
-
![NATO outlines future challenges as Ukrainian funding from US stalls]()
NATO outlines future challenges as Ukrainian funding from US stalls
In 2023, defence spending increased by an unprecedented 11% across European NATO countries and Canada. Since 2014, the group has spent an additional US$600 billion on defence.
-
![US Pentagon to reduce investments in main acquisition programmes over FY2025]()
US Pentagon to reduce investments in main acquisition programmes over FY2025
The DoD requested nearly US$850 billion to fund operations over the next fiscal year. Despite the amount being 1% higher than the FY2024 budget request, it has not covered the 3% inflation rate, which could impact the DoD’s main programmes in the medium and long term.
-
![Haiti crisis forces Caribbean militaries to prepare for intervention]()
Haiti crisis forces Caribbean militaries to prepare for intervention
As gangs gain control of Port-au-Prince, Haiti’s Caribbean neighbours have been preparing to intervene in the failed state, with the US and other partners waiting in the wings with equipment and financial support.
