Diverse airline business models helping to support demand for older aircraft
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Las Vegas-based airline Allegiant is seizing the opportunity to exploit valuation gaps of used aircraft to expand its fleet. The move is consistent with Allegiant's business model which includes operating older aircraft with strong maintenance records and low utilisation rates that still offer low operating costs but without major up front acquisition costs, helping to reducing the airline's unit costs. This also helps to create demand for older aircraft which in turn helps to protect residual values, writes JOE GILL.

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