737 vs A320 - Allegiant Air's Boeing Order

[Music] welcome back to Globe trotting be sure to subscribe to the channel if you haven't already it would certainly mean a lot when Airlines order aircraft there's a lot to consider especially if an airline is potentially looking at switching allegiances towards another competing aircraft manufacturer Allegent air a lowcost unit within the United States has recently relied heavily on Airbus produced aircraft so when the company was looking towards placing a new aircraft order many believed it would be a shorefire deal with Airbus that' be tied up pretty promptly and resulting in the company sticking with what it has been used to for some time now this is again what people presumed may take place and the reality is that situations can be far more complex than maybe the easiest way out Allegient air ended up going in the other direction committing to the Boeing 737 Max series for future flying this for many was a surprise especially considering all that had happened through the years and the belief that Airbus was maybe leading the way in securing such a commitment why did Allegent head in the direction of Boeing well it's time to explore that very question much more in depth let's discuss the order to begin with well the AirLand committed to 50 Boeing 737 Max jets in 2022 as part of a shift in strategy and a move to becoming more efficient cost reductions are probably one of the first significant factors that a company likes to take a look at when understanding what equipment it will utilize in the future Allegiance says that based on their available data and the overall economics it will see a lower cost per seat amount for the max series over its currently existing and also aging A320 Co family planes as prices continue to rise and these next Generation aircraft also enjoy better efficiency Allegient thinks it can save further money thanks to a report published by the airline it was also interesting to learn that costs associated with operating the co and the max in the future and how each division such as crew fuel ownership stations and maintenance would see cost savings made by operating the 737 type now you could say that if allegion had selected the A320 Neo that it would have experienced a similar fate Allegent may have also enjoyed the better continuity throughout its operation by replacing their cosos with a natural replacement in form of the new engine option made by the European plane maker so why not the A320 Neo and why Boeing's narrow body well it is essential to consider that for allegion when placing an order that would drive them into the future they need to determine what is best for them Allegiance said said that yes the A320 Neo is a great aircraft and we already know that it can offer customers a lot ultimately it wouldn't be so successful if it didn't do such a thing however what one company is looking for may be different to another Allegiance CEO said the biggest drawback in selecting the A320 Neo was the delayed delivery of the type this was a major downside for a legion but it doesn't necessarily mean the 320 Neo is a bad aircraft for them the A320 Neo is in so much demand that really the European plane maker can't handle the orders and shipping these off on time at current production rates especially when factoring in the lull period that we've seen in recent years thanks to the global pandemic lack of qualified staff and supply chain issues this does mean that for a company that is looking to commit to the program now they need to have the realization that they won't be getting these new jets for quite some time we're not talking a handful of years but closer to the decade Mark it's not like it's much better at Boeing though but Allegient did believe that Boeing just had more desirable delivery slots available to them with the ambition to get these planes in sooner rather than later we can understand that one of the critical factors was when they would be able to secure first delivery of these planes and if they had selected Airbus they'd be waiting a lot longer than with Boeing interestingly in addition to this there was also a significant Focus placed on the desire from Boeing to actually secure that contract from Allegient in a t all interview with leham news and Analysis which will be linked below allegian Airlines CEO Mari gallager said that Boeing was just hungrier to secure the deal additionally he said that allegian got a brilliant deal as well securing such a good deal is actually an essential part of where Airlines will head when they put forward their rfps or requests for proposals they like to gauge what each manufacturer can offer the company obviously they understand the benefits of each respective aircraft being put forward but when can they take delivery of the aircraft how much are they going to be paying what do the contracts look like and so much more are all considered it's important to also note that Airlines will always evaluate Fleet choices considering factors such as what I've touched on being the performance of the aircraft in comparison to maybe more of the Aging units the overall cost to operate the aircraft and whether there is that visible difference for the route Network that they'll be placing these new planes on and generally operational requirements before a decision can be formally made that is why it can take so long between the first initial speculation that a deal is coming and the eventual signing of the contract add even longer before the plane is delivered and it can sometimes be a 5 to 10e process while Allegient air has predominantly relied on Airbus powered aircraft the 737 Max will represent a shift in Direction but it came after a pretty comprehensive assessment of many factors and really the airlines long-term strategy for growth and profitability two very important factors to consider on top of that when considering that Boeing's proposition was just really ultimately better than air buses this was a no doubt determining factor for Airbus the lack of available delivery slots well it seemed like this was a driving force behind why Allegient went with the US plane maker in the case of Boeing maybe they were just the clear winner and many people would argue that airboss just weren't able to facilitate what Allegiant were looking for so while they no doubt put forward their A320 Neo family things just didn't align with that being said Allegent is still going to be heavily relying on these Airbus produced aircraft and sticking with a model of utilizing older planes but the max will facilitate further growth and improve efficiency massively which should reflect in their financials since the commitment placed in 2022 Allegan has added more options this actually took place in and around a month ago depending on when you are watching this video but also at the same time allegian has reported a delayed entry into service for their first max this is thanks to the many issues with the program which has seen Boeing struggle to get these planes delivered on time something no doubt they'll be hoping that they can iron out in the coming months or potentially coming years for the long term however all that being said allegian remains pretty excited about the proposition of securing their first 737 Max in what will be a shift for them and no doubt something that may look a tiny bit odd for plain spotters what are your thoughts on Allegient ordering the max do you believe it was the best decision for them or do you think they should have bid in the bullet and stuck with Airbus produced aircraft even with the delays involved thank you very much for tuning into this analysis here on Globe truing your support is greatly appreciated please do take care and be safe stay tuned as there will be much more analysis heading your way and we f oh well Fly Away

Channel: GlobeTrotting at Dj's Aviation

Views: 24,106

Keywords: aviation, airline, airport, globetrotting, dj's aviation, avgeek, airbus, boeing, daily dose of aviation, aviation analysis, aircraft analysis, planespotting, planes, aircraft

Id: JABgaT8s0lQ

Length: 8min 37sec (517 seconds)

Published: Sat Nov 11 2023