Allegiant Travel Company has completed its acquisition of Sun Country Airlines, combining two U.S. leisure-focused carriers following shareholder and regulatory approvals. Allegiant announced the closing Wednesday and said Sun Country shares have stopped trading on the NASDAQ, while Allegiant will continue trading under the ticker ALGT. The cash-and-stock transaction reportedly valued Sun Country at about $1.5 billion.
“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,” Allegiant CEO Gregory C. Anderson said. “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.”
The combined company will have 195 aircraft serving nearly 175 cities across more than 650 routes, according to Allegiant. The airlines will continue to operate as separate carriers for now, with no immediate changes to reservations, schedules, frontline roles or existing labor agreements. Allegiant said it expects about $140 million in annual synergies within three years. For the time being, the carriers will continue operating separately until the FAA issues a single operating certificate.
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