Allegiant considering SLBs for A319s

San Francisco
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Allegiant Air is considering sale and leaseback (SLB) transactions for its incoming Airbus A319s.

Tom Doxey, director of fleet planning and corporate finance at the Las Vegas-based low-cost carrier, says the deals would be similar to the ones it closed on its Boeing 757-200s with Sunrise Asset Management, at the Ascend Aviation 2020 Finance Forum in San Francisco on 28 November.

"We may do something similar on the A319s as well," he says, citing the 757 transactions.

Allegiant closed SLBs for all six of its 757s with Sunrise Asset Management as it acquired them in 2011 and 2012. The aircraft were purchased from AerCap.

The airline signed five-year capital leases for 10 A319s with Philippine carrier Cebu Pacific in July. It intends to buy the aircraft as they come off lease.

Allegiant also leased nine former EasyJet A319s from GE Capital Aviation Services the same month.

Doxey says that the airline would use cash to buy the aircraft and not a SLB if it does not receive the financing terms that it wants.