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Allegiant Officially Completes Acquisition of Sun Country Airlines
Just a few months after announcing their merger plans, two leisure-centric airlines have officially closed the deal.
About Allegiant’s Acquisition of Sun Country (and What Customers Can Expect)
Earlier this year, Allegiant revealed that it was acquiring Sun Country Airlines for approximately $1.5 billion. As of this week, that transaction has now closed.
While the two carriers are now merged, customers can continue to book and manage their travel through the same channels as previously. Moreover, in the near term, both airlines will operate separately and as their own brands. However, down the line, Allegiant says it intends to introduce additional benefits as well as make it easier for flyers to access the combined airline network. Additionally, Allegiant Allways Rewards and Sun Country Rewards will remain separate for the time being, with the airline advising that earned points will retain their current value.
Elsewhere, although the combined company says that frontline and operational employees won’t see any changes to their roles currently, Allegiant warns that corporate-level positions may shift as some functions may overlap. The company says that any changes will be “evaluated carefully” with a “focus on fairness, respect, and clear communication.”
Finally, with Sun Country based in Minnesota, Allegiant also plans to maintain a strong presence in Minneapolis-St. Paul.
What They’re Saying:
In a statement, Allegiant CEO Gregory C. Anderson said, “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. With a combined fleet of 195 aircraft serving nearly 175 cities, we are expanding access to affordable, reliable, and convenient travel for the communities that have long been the foundation of our business, while offering customers broader reach and more destinations.”
Anderson continued, “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. I want to recognize Team Allegiant and Team Sun Country, whose dedication and hard work made this day possible.”
My Thoughts:
While this acquisition was announced prior to Spirit’s demise, it is interesting that its completion arrives at a time when all eyes are on the airline industry. I’m guessing that the two airlines are also breathing a sigh of relief right now (although neither were in a similar position to Spirit).
Per usual, things for passengers won’t be changing overnight. However, if they follow the Alaska/Hawaiian playbook, we could start seeing some integrations happening within a few months. Personally, I’m most interested to see how they combine their loyalty programs — although they are already fairly similar in terms of value and redemption, so nothing drastic will likely be required.
As someone who flies Allegiant fairly regularly, I’ll definitely be keeping an eye out for updates as this acquisition sinks in.
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