Ben Mutzabaugh

USA TODAY

Allegiant Air has ordered brand-new aircraft for the first time in its history.

The leisure carrier announced on Friday it had reached a deal to buy 12 current-generation models of Airbus’ A320 narrowbody jets. Allegiant called the order “another step towards (its) planned transition to an all Airbus fleet by 2019.”

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Since its founding in 1997, Allegiant has filled out its fleet entirely with used aircraft that could be purchased inexpensively. That business model served the carrier well, allowing it to post profits as it carved out a unique niche by connecting smaller markets to leisure destinations on nonstop flights. Including its latest profit announced on Friday, Allegiant has posted a profit in 54 consecutive quarters.

For many years, Allegiant’s fleet was comprised mostly of aging MD-80 jetliners bought used from other airlines. Allegiant still has about 50 of those jets in its fleet, but is rapidly phasing those out in its switch to an all-Airbus fleet.

It’s against that backdrop that Allegiant has bought new aircraft for the first time ever. The company had already acquired more than 30 used Airbus models, but the new A320s also will likely come at a significant discount from list prices. They will be among the last current-generation variants to roll off the assembly line before Airbus switches to production of an updated variant of the jet.

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“The fact that these planes are new is notable, but should not be seen as a change in our fundamental strategy,” Allegiant CEO Maury Gallagher says in a statement. “We have always looked at building our fleet opportunistically, and this agreement is no exception. With Airbus preparing to transition production of its current engine option models to new engine option models, we were able to negotiate an order for twelve end-of-line slots.”

Gallagher offered more on the order in the company's quarterly earnings report, also out Friday.

"While we have historically purchased used aircraft, these new A320s will be a small component of our Airbus aircraft fleet in 2019," he says. "Moreover, these aircraft have their own economic advantages - nine more seats and 5%-7% fuel savings over our current used A320s. These features will allow us to maintain our model’s low cost structure and low-frequency schedule, all of which have differentiated us from other carriers."

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The new A320s are expected to enter service for Allegiant between 2017 and 2018. The deal gives Allegiant a total of 77 Airbus aircraft either already in service or committed for future delivery.

“This purchase agreement is an important step in transitioning to a single fleet type,” Jude Bricker, Allegiant’s chief operating officer, adds in the statement. “Streamlining our fleet will increase efficiencies across our entire operation and bring economic advantages in fuel savings and a higher number of seats – allowing us to continue offering the industry’s most affordable fares, while increasing reliability.”

By the end of 2016, the company's in-service Airbus fleet will number 33, consisting of 16 A320s and 17 A319s. At the end of this year, Allegiant says it will have a total of 85 aircraft in revenue service.

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