The Aerospace industry is in the makings of a substantial rebound from it’s worst recession to date.
Aviation companies such as Boeing and Airbus are competing in cutting costs in this current market. These companies who have established themselves as industry leaders are expected to make a recovery for the better as the market conditions and tourism demand seem to be on an upward trajectory.
“The leisure market is coming back in droves relative to the business market,” said someone familiar with Allegiant’s plans.
A switch of this nature is quite uncommon. Many choose not to switch because the cost of retraining pilots and other related expenses are quite high, but in an uber-competitive time like this, it could become more popular.
The reason it could become more popular is because Allegiant was already an Airbus operator. The fact that they decided to switch to Boeing is something that should not go unnoticed, and says more about the competition, objectives, and priorities in the current aviation environment (i.e., cut costs) and how the industry could compete even further in an all out order-race.
The $5B investment in the 737 MAX planes will help Allegiant achieve their objective reduce costs related to fixtures, defects, etc. by replacing old aircrafts and will therefore further their current growth initiatives.