A Big Move in the Skies: Two Budget Airlines Join Forces

In a surprising turn of events, Allegiant Air, a budget airline based in Las Vegas, has decided to buy Sun Country Airlines, another budget airline from Minneapolis. This deal is worth $1.5 billion and includes both cash and stock. Allegiant will also take on about $400 million of Sun Country's debt.

Merger Details

• Expected Completion: By the end of 2026, pending regulatory approval.
• Ownership Structure:
• Sun Country shareholders will own 33% of the new combined airline.
• Allegiant shareholders will own the remaining 67%.

About the Airlines

• Allegiant Air: Founded in 1997, serves smaller cities often ignored by larger airlines.
• Sun Country Airlines: Founded in 1982, follows a similar model, flying from smaller markets to popular vacation spots.
• Both airlines have been performing well but face a competitive market with high costs.

CEO Statements

• Gregory C. Anderson (Allegiant CEO):

  "I have always admired Sun Country for its flexible and diversified business model. Together, we can reach more vacation destinations, including international ones."

• Jude Bricker (Sun Country CEO):

  "Sun Country has grown to become one of the most respected low-cost airlines in the nation. This merger is an exciting next step, creating one of the leading leisure travel companies in the U.S."

Post-Merger Structure

• CEO: Gregory C. Anderson (Allegiant) will continue as CEO.
• Board: Jude Bricker (Sun Country) will join the board.
• Headquarters: Will move to Las Vegas, but the airline will maintain a presence in the Twin Cities.
• Fleet: Combined fleet will have 195 airplanes.