A Big Move in the Skies: Two Budget Airlines Join Forces

In a surprising turn of events, Allegiant Air, a budget airline based in Las Vegas, has decided to buy Sun Country Airlines, another budget airline from Minneapolis. This deal is worth $1. 5 billion and includes both cash and stock. Allegiant will also take on about $400 million of Sun Country's debt. The merger is expected to be finalized by the end of 2026, but it still needs approval from regulators. Once it's done, Sun Country's shareholders will own 33% of the new combined airline, while Allegiant's shareholders will own the remaining 67%. Allegiant Air started in 1997 and has been serving smaller cities that bigger airlines often ignore. Sun Country, which began in 1982, has a similar model, flying from smaller markets to popular vacation spots. Both airlines have been doing well, but the market is tough with high costs and lots of competition.The CEO of Allegiant, Gregory C. Anderson, said that he has always admired Sun Country for its flexible and diversified business model. He believes that together, they can reach more vacation destinations, including international ones. Under the merger, Anderson will continue as the CEO of the combined airline. Sun Country's CEO, Jude Bricker, will join the board. The headquarters will move to Las Vegas, but the airline will keep its presence in the Twin Cities. The combined fleet will have 195 airplanes. Bricker said that Sun Country has grown to become one of the most respected low-cost airlines in the nation. He sees the merger as an exciting next step in their history, creating one of the leading leisure travel companies in the U. S.