Allegiant Kills Deal To Buy Cebu Pacific Airbuses
Nevada-based Allegiant said it was unable to reach a final agreement with Philippines-based Cebu Pacific, citing a “failure to satisfy certain conditions to proceeding with the transaction.”
“We are disappointed that we were not able to finalize this agreement on which we spent a substantial amount of time and effort,” said Andrew C. Levy, Allegiant President, in a statement. “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.”
Allegiant said its other contracts to acquire Airbus jets will continue as planned. The airline has deals in place to lease nine A319s from GECAS and buy nine A320s from Iberia. Seven of the A320s are expected to be delivered in 2013, and Allegiant will continue to look for additional Airbus aircraft on the world market.