Two low-cost airlines are merging in $1.5 billion deal
thestreet.com••general
Key Points:
- Allegiant Air announced plans to acquire rival Sun Country Airlines for $1.5 billion, combining cash, stock, and assuming $400 million of Sun Country’s debt, pending regulatory approval with completion expected by the end of 2026.
- The merger will create a low-cost airline where Sun Country shareholders hold 33% and Allegiant shareholders 67%, with Allegiant CEO Gregory C. Anderson continuing as CEO and Sun Country CEO Jude Bricker joining the board.
- Both airlines operate similar low-cost models serving smaller markets and leisure destinations, with Allegiant focusing on under-served cities and Sun Country flying to Florida, Mexico, the Caribbean, and secondary U.S. cities.
- The deal aims to expand the combined airline
