Allegiant Travel Company has completed its acquisition of Sun Country Airlines Holdings.
This follows the completion of the required procedures, including approval from the authorities and the shareholders of both companies. After the integration, the combined group will operate a total of 195 aircraft on more than 650 routes, serving approximately 175 cities. It will become the largest U.S. leisure-focused airline, carrying about 22 million passengers annually. The company also holds orders for 30 additional aircraft and options for 80 more.
For the time being, both brands will be retained, and operations will continue as separate airlines. There will be no changes to reservations or flight schedules, and both Allegiant Always Rewards and Sun Country Rewards will continue to operate as independent programs for the time being.
The company expects annual synergies of approximately 140 million U.S. dollars within the next three years, mainly driven by complementary networks, economies of scale, fleet optimization, and reduced procurement costs. Earnings per share are expected to increase from the first year after the integration.
Sun Country Airlines’ cargo business for Amazon Prime Air, as well as its charter operations for casinos, Major League Soccer and other U.S. professional sports, college sports, and the U.S. Department of Defense, will also be integrated, contributing to diversification of revenue streams.
In terms of management structure, Gregory C. Anderson, CEO of Allegiant Travel Company, will continue to serve as Chief Executive Officer (CEO) of the combined company, and Robert Neal will assume the role of President and Chief Financial Officer (CFO).
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