Allegiant Travel Company this week announced it completed the acquisition of Sun Country Airlines which certainly looks to have an impact at the Minneapolis-St. Paul International Airport.
Bridget Rief is vice president of planning and development with the Metropolitan Airports Commission.
"Allegiant has the opportunity to come in and fit flights in those not busy times, so that the use of the terminal should become more consistent," says Rief. "They'll be able to fit flights in those gaps."
The two airlines will fly under different banners for the next several months pending FAA approval before the Sun Country name will eventually be dropped for good.
"Actually makes it better for the concessions and the employees, because they'll have a full busy day, if you will, and not such a peak on, and peak off time every day," adds Rief.
Las Vegas-based Allegiant said the transaction closed after receiving required regulatory and shareholder approvals. When the deal was first announced in January, Allegiant said it was valued at about $1.5 billion, including debt.
“Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country,” Allegiant CEO Gregory Anderson said in a statement, adding that the new combined airline is positioned to offer broader access to affordable travel.
The deal comes as both airlines and travelers are grappling with a sharp run-up in jet fuel costs driven by the war in the Middle East, a jump that is already showing up in higher fares and fees across the industry. That increase is hitting low-cost airlines especially hard, since they have less room to absorb rising costs.
The pressure was especially acute for Spirit Airlines. The ultra low-cost carrier shut down after 34 years May 2, its collapse accelerated by the sharp rise in fuel costs following years of financial strain, including heavy debt, repeated restructuring efforts and ongoing cash-flow problems.
Against that backdrop, Allegiant and Sun Country say their tie-up gives them more ways to generate revenue. Along with passenger flights, Sun Country brings into the fold cargo flying for Amazon, as well as charter trips for sports teams, casinos and the U.S. Department of Defense,.
Allegiant says the expanded network is also expected to give travelers more options, especially in smaller and mid-sized markets, with about 195 aircraft serving nearly 175 cities and more than 650 routes.
For now, travelers shouldn’t expect any changes. Both airlines will continue to operate separately, and customers can keep booking, checking in and managing trips just as they do today.
Allegiant said it will take time to bring the two airlines together. Over the long term, the combined company is expected to operate under the Allegiant name and remain headquartered in Las Vegas, while adding new options and connections across its broader network.
They add Minneapolis–St. Paul, where Sun Country is based, will remain an important hub for the airline.
