Sun Country Airlines absorbed into Allegiant in $1.5B deal; both brands to operate separately for now
Allegiant has completed its acquisition of Sun Country Airlines, the two carriers announced, combining the leisure-focused airlines in a deal valued at $1.5 billion.
The transaction closed after receiving required regulatory approvals and shareholder approval from both companies. Together, the airlines will operate a combined fleet of 195 aircraft serving nearly 175 cities.
Both airlines will continue to operate as separate carriers in the near term, maintaining their respective brands. Customers are not expected to see immediate changes to reservations, flight schedules, or travel plans, and should continue managing bookings through the airline with which they originally booked.
Allegiant Allways Rewards and Sun Country Rewards will also remain separate programs for now, with members' points, benefits, and account status retaining their current value. Allegiant said it expects to introduce additional benefits over time that make it easier for customers to access the combined network.
On staffing, Allegiant said there are no immediate changes to frontline roles and that operational employees will continue in their current positions. The company said all existing collective bargaining agreements will remain in place and that it will work with labor representatives throughout the integration process.
Allegiant said it values Sun Country's roots in Minnesota and expects Minneapolis-St. Paul to remain an important operating center for the combined company, though the combined company will be headquartered in Las Vegas.
The deal was first announced with Allegiant agreeing to acquire Sun Country in a cash and stock transaction. At the time, Sun Country CEO and President Jude Bricker said the two companies are "two customer-centric organizations, deeply committed to delivering affordable travel experiences without compromising on quality."
The earlier announcement projected the combined airline would provide more than 650 routes across the United States and internationally.
