Allegiant completes acquisition of Sun Country Airlines | News
Allegiant Travel Company today announced that it has completed the acquisition of Sun Country Airlines Holdings, Inc. has successfully completed. It brings together two complementary airlines focused on affordable leisure travel. The transaction closed after satisfaction of customary closing conditions, including the receipt of required regulatory approvals and approval by Allegiant and Sun Country stockholders.
The combination strengthens Allegiant’s position as a leading U.S. leisure airline by expanding its network, increasing scale and strengthening its diversified business model.
“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country to create the leading leisure-focused airline in the United States,” said Gregory C. Anderson, CEO of Allegiant. “With a combined fleet of 195 aircraft serving nearly 175 cities, we are expanding access to affordable, reliable and convenient travel for the communities that have long been the foundation of our business, while offering customers greater reach and more destinations. By bringing together two strong airlines with similar business models, we are creating a more differentiated and sustainable airline – one well positioned to deliver lasting value for our customers, team members and shareholders. I want to recognize Team Allegiant and Team Sun Country, whose dedication and hard work made this day possible.”
Customers can continue to book trips through existing channels and there will be no changes to current reservations, flight schedules or travel plans. Both airlines will continue to operate as separate airlines in the short term and retain their respective brands. Allegiant Allways Rewards and Sun Country Rewards will remain separate for the short term and members’ points, benefits and account status will retain their current value. Customers must continue to manage reservations, check-in and access customer service through the airline they booked their travel with. Over time, Allegiant expects to introduce additional benefits that will make it easier for customers to access the combined network.
The combined company is committed to a thoughtful and disciplined integration process focused on maintaining safe, reliable operations and delivering a consistent customer experience.
There are no immediate changes to frontline roles and operational staff will remain in their current positions. The company will work closely with employee representatives throughout the integration process, and all existing collective bargaining agreements will remain in force.
At the corporate level, some roles may overlap because functions are integrated. Any changes will be carefully evaluated, with an emphasis on honesty, respect and clear communication.
Allegiant appreciates Sun Country’s deep roots in Minnesota and expects Minneapolis-St. Paul will remain a key operations center for the combined company. The combined company is committed to maintaining strong relationships with the communities, airports, customers and partners served by both airlines, while continuing to support the leisure-oriented markets that have been central to each company’s success.
Together, Allegiant and Sun Country will serve approximately 22 million customers annually in nearly 175 cities, with more than 650 routes and a combined fleet of 195 aircraft.
The combination brings together complementary strengths, including:
Expanded access to leisure destinations in the US and select international markets
A diversified model supported by scheduled services, charter and freight activities
Scale to support long-term growth and operational resilience
Financially, the combination of Allegiant and Sun Country brings together two profitable airlines with complementary networks, diversified revenue streams and strong balance sheets, creating a platform with meaningful long-term value creation potential. Allegiant expects to realize approximately $140 million in annual synergies within three years of closing and integration, driven by increased customer choice within the combined network, efficiencies of scale, fleet optimization and purchasing benefits. The transaction is expected to be accretive to earnings per share in the first full year after closing, while maintaining balance sheet flexibility.
Sun Country’s cargo operations for Amazon Prime Air and charter contracts with casinos, Major League Soccer, collegiate sports teams and the Department of Defense complement Allegiant’s existing charter operations and further diversify the combined company’s revenue base. With 195 aircraft at closing, 30 aircraft on order and an additional 80 options, the combined company will have greater flexibility to optimize aircraft deployment, improve utilization and support long-term growth through economic cycles.
Greg Anderson will serve as Chief Executive Officer of the combined company, and Robert Neal will serve as President and Chief Financial Officer. Jude Bricker, Jennifer Vogel and Thomas C. Kennedy were appointed to Allegiant’s Board of Directors.
In connection with the closing, Sun Country’s common stock has ceased trading on the NASDAQ, and Allegiant Travel Company will continue to trade on the NASDAQ under the ticker symbol “ALGT.”
