Allegiant Bets on Boeing

Boeing Lands Allegiant After Two Big Airbus Defections

Pushing Back: Inside The Issue

In the first week of the new year, Allegiant decided to make some news. The long-time Airbus operator ordered 50 Boeing 737 Max-family aircraft, with options for 50 more. Allegiant downplayed the news by saying it has operated a mixed fleet in the past (remember its MD-80s?) but it's still big news. It's a much-needed shot in the arm for beleaguered Boeing and the Max program. And it's a testament to the strength of the Airbus A320 program, because Allegiant's decision was informed in part by the long wait times for A320 deliveries, given Airbus's backlog.

In other news, two U.S. federal agencies got into a spat over the rollout of 5G wireless networks, with the wireless companies agreeing to a two-week delay so that the FAA can determine just how much the technology will interfere with radio altimeters. The Omicron variant and terrible weather gave airlines just the kind of news coverage they didn't want over the holidays. Many carriers are trimming their January schedules. Meanwhile, United's partnership with the Landline bus company is off to a slow start, but both companies see promise in its future.

Next week, Delta kicks of the fourth-quarter and full-year earnings season. Just how much of a bite did Omicron take out of airlines' earnings? We'll soon find out.

The Airline Weekly Lounge Podcast

It should have been a great holiday season for the U.S. industry, with bookings approaching 2019 levels, but a combination of Omicron-related crew shortages and terrible weather forced airlines to cancel thousands of flights. Edward Russell and Madhu Unnikrishnan dig into what happened and discuss the FAA's spat with the Commerce Department over 5G networks. Listen to the episode.