Allegiant Closes Acquisition of Sun Country: What It Means for Travelers

Allegiant Air officially completed its merger with fellow budget carrier Sun Country Airlines, according to a May 13 announcement.

“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 Allegiant CEO Gregory C. Anderson in a press release.

The combined company will operate a fleet of 195 aircraft to serve 175 cities and over 650 routes. Sun Country’s hub in Minneapolis-St. Paul will still remain “an important operating center” for Allegiant as the two airlines integrate.

The merger between the two low-cost carriers was first announced in January, in a deal valued at around $1.5 billion including debt. It was later approved by federal regulators and shareholders of both companies.

Under the acquisition, Allegiant said it anticipates around $140 million in annual synergies over the next three years following closing and integration. Frontline roles and operational employees will stay in their current positions, although there may be overlap at the corporate level.

“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,” continued Anderson.

What Does the Merger Mean for Sun Country and Allegiant Customers?

There are no immediate changes for passengers of either airline, Allegiant said. They will operate as separate carriers, meaning customers can book through existing channels and access customer service through their respective airline. Current reservations, flight schedules and travel plans are not affected.

The two loyalty programs, Allegiant Allways Rewards and Sun Country Rewards, will also stay separate until further notice.

Eventually, Allegiant will introduce “additional benefits for customers to access the combined network.”

Reporting by Kathleen Wong, USA TODAY. USA TODAY Network via Reuters Connect.