Allegiant and Sun Country have cleared another regulatory hurdle on their way to merging some time later this year.
The partners announced Wednesday that the U.S. Department of Transportation has granted a joint interim exemption application that will allow both carriers to continue operating as separate entities under common ownership after the closing date.
The authorization “marks a significant step” toward completing Allegiant’s acquisition of Sun Country, officials said.
“This approval underscores the strength of our shared vision and the thoughtful approach both teams have taken throughout this process,” Allegiant CEO Gregory C. Anderson said in a statement. “We remain focused on bringing these organizations together in a way that builds on their strengths, while positioning the combined company for long-term growth and resilience.”
Under the terms of the DOT’s approval, Allegiant and Sun Country will continue to operate independently after the merger closes, maintaining their own business models, route networks, and products, as they worked toward a single operating certificate. Leaders of both airlines said this structure will help ensure operational continuity during the merger process.
According to Allegiant, the DOT’s recent ruling “satisfies the last remaining regulatory approval-related condition” for the planned linkup. Now, the deal will go before Allegiant and Sun Country’s shareholders. Both airlines have scheduled shareholder meetings for May 8.
If investors approve the merger, it could close as soon as May 13, officials said.
Allegiant is set to acquire Sun Country in a cash-and-stock deal valuing Sun Country at $18.89 per share. The combined airline would serve about 22 million customers annually and operate in nearly 175 cities.
