Allegiant closed its roughly $1.5 billion acquisition of Sun Country on Wednesday, following approvals from regulators and shareholders.
Allegiant executives said the new combined company will own 195 aircraft and serve nearly 175 destinations. The linkup, first announced in January, is expected to bring together complementary route networks, improve operational resilience, and set the stage for new international flights. Allegiant, as the surviving organization, also expects to realize approximately $140 million in annual synergies within three years.
Though now legally joined, Allegiant and Sun Country will continue to operate as separate entities in the near term, officials said. Customers can continue to book flights through existing channels, and there are no changes to flight schedules, reservation systems, or travel plans.
Operations employees will continue in their current roles, the airlines said, and all existing collective bargaining agreements will remain in place.
Still, integration of the two carriers is coming, and Allegiant and Sun Country said they will proceed in a “thoughtful and disciplined” manner with a focus on “maintaining safe, reliable operations and delivering a consistent customer experience.”
The partners suggested there could be some “overlap” at the corporate level, but did not explicitly mention eliminating jobs.
“Any potential changes will be evaluated carefully, with a focus on fairness, respect, and clear communication,” officials said.
Allegiant also said it recognizes Sun Country’s ties to Minnesota and “expects Minneapolis-St. Paul to remain an important operating center for the combined company.”
Shareholders of both Allegiant and Sun Country signed off on a cash-and-stock transaction valuing Sun Country at $18.89 per share.
Current Allegiant CEO Gregory Anderson will serve as CEO of the combined company, with Robert Neal serving as president and CFO. Sun Country President and CEO Jude Bricker will join Allegiant’s board of directors.
“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,” Anderson said in a news release. “By bringing together two strong airlines with similar business models, we are creating a more differentiated and durable airline – one well positioned to deliver lasting value for our customers, team members, and shareholders.”
Regulators approved Allegiant’s acquisition of Sun Country last month and granted permission for the carriers to continue operating separately until a single operating certificate is issued by the FAA.
