Allegiant to buy 757s for Hawaii flights

LAS VEGAS

Allegiant Travel Co. said on Friday that it will buy six used Boeing 757-200s to use on new routes to Hawaii.

The company's Allegiant Air unit focuses on leisure destinations, but its 46 MD-80 aircraft lacked the range to take passengers to Hawaii. The 757s are equipped for long overwater flights.

The aircraft are coming from a European operator (Allegiant didn't say which one), and the first two are to be delivered in the next two months, and will begin flying for Allegiant during the fourth quarter, the company said.

The other four planes arrive through the end of 2011 and should be flying for Allegiant by the first half of 2012, the company said.

Allegiant said it expects to spend $75 million to $90 million through 2012 buying the 757s and getting them ready to fly. It said it could use cash, but expects to use debt for some of the purchase.

Allegiant said it would begin flying to Hawaii once regulatory requirements are met. It needs to meet federal requirements for adding a new aircraft to its fleet and for the extended overwater flights, Allegiant spokeswoman Tyri Squyres said.

Allegiant generally connects small U.S. cities with vacation spots, offering low base fares but making money by charging for add-ons as well as selling package deals including lodging and car rental.

Squyres said Allegiant hasn't yet picked the cities for the Hawaii flights, but said they would originate in a mainland city that doesn't already have service to Hawaii on another airline.

Allegiant shares fell 12 cents to close at $52.91.