Eric M. Johnson, Tim Hepher

SEATTLE/PARIS – Allegiant Air closes to ordering 50 Boeing (NYSE 🙂 737MAX jets valued at $5 billion each, sources familiar with the matter stated. The low-cost U.S. airline is hoping for a revival in tourism.

The commercial backlash against the purchase of dozens more jets could be stemmed by this deal. Boeing Co . Allegiant sees this as a departure from its previous strategy to buy second-hand aircraft at low prices. This has allowed it to acquire more than 100 Airbus jets.

Boeing’s airline change comes as two key customers of KLM and Qantas Australia switched to Airbus late last year, increasing competition between both planemakers.

These “flips”, which are uncommon due to the high cost of pilot retraining, reflect intense competition for business in an aerospace industry that is trying to rebound from the worst recession it has ever experienced.

Allegiant Air (a unit of Allegiant Travel Co) declined to comment on the statements made by Boeing, Airbus, Airbus and Allegiant Air.

This is just the latest indication of rapid growth in “ultralow-cost” carriers, which combine low fares and a variety of extra charges. This type of carrier is expected to recover from the COVID-19 pandemic in relative strength.

Allegiant sources say that the leisure market is returning in large numbers relative to the business markets.

According to European data, the Las Vegas-based airline operates 122 A319 and A320 jets. Only 13 were purchased directly from Airbus.

According to people, new Boeing aircraft would replace old ones and support Allegiant’s future growth plans.

Mexico’s Viva Aerobus announced in December a commercial partnership with Allegiant, which will allow for flights between Mexico and the United States.

Two people claimed that the Allegiant Order would be issued after a competition at least partly between the 737 MAX 7 (two of them) and the Airbus A220 (one of them).

The list price for each 737 MAX 7 is $99.7million. However, jets are often sold at a fraction of their actual value due to market discount, according to aircraft industry sources.

Boeing’s 737 MAX has enjoyed a record year, leveraging on the increased demand following a near two-year safety ban after fatal crashes. However, it was unable to win high-profile contests with Qantas Airways or the Dutch Air France KLM arm in December.