Wednesday, January 2, 2013
Allegiant Cancels Cebu Pacific Airbus Order
Las Vegas-based Allegiant Travel has canceled its proposed transaction to acquire 10 Airbus A319s from Cebu Pacific Air.
Allegiant originally announced the transaction in July after signing a letter of intent with the Philippines-based airline, but canceled the order after failing to agree on several provisions involved in the transaction.
"Unfortunately we were unable to come to terms on some of the economic provisions of the transaction and as we have demonstrated in the past, we will not purchase aircraft just for the sake of growth. Our disciplined approach in asset purchases is a core competency that we will not compromise,” said Andrew C. Levy, president of Allegiant Travel Company.
Levy said the company will remain active in pursuing more opportunities to purchase or lease additional Airbus planes.