Allegiant secured the required financing for the acquisition of seven airbus A320s and four Boeing 737 MAX aircraft. The funds will come from BNP Paribas, Europe’s leading bank, and Jackson Square Aviation (JSA), a lessor of commercial aircraft.
This agreement, totaling $412 million, will ensure Allegiant’s financing needs until the second quarter of 2024. In this regard, Robert Neal, Senior Vice President and CFO of Allegiant, emphasized, «BNP Paribas and Jackson Square have managed to provide us with an efficient framework that gives us strong liquidity to support essential investments in our fleet. This transaction will result in the addition of very new A320ceo aircraft, and it will also serve as financing for our Boeing 737 MAX aircraft.» Neal noted that Allegiant’s relationship with BNP Paribas, which spans over a decade, has been «instrumental» in the airline’s growth.
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Ankush Chowdhury, CEO and Head of Transportation and Capital Markets Banking at BNP Paribas, pointed out that «Allegiant, a long-time client of the bank, will now have an innovative and unique financing solution that combines the bank’s and lessor’s capital in a single transaction. This will allow the airline to maximize value and have greater structural flexibility in managing its fleet.»
«We are pleased that this deal allows us to work with BNP Paribas, our long-standing partner. We also welcome Allegiant at the same time,» added Chris Dailey, President and CCO of JSA. «Combining the strengths of JSA and BNP Paribas enables Allegiant to finance its fleet and introduce the Boeing 737 MAX 8200, which we are also excited to add as a novelty to our portfolio.»
Allegiant currently operates a fleet of 127 aircraft consisting exclusively of Airbus A319 and A320 aircraft. However, it has agreed to acquire up to 130 units of the Boeing 737-7 and 737-8-200.
