According to a May 13 announcement, Allegiant Air officially completed its merger with fellow budget carrier Sun Country Airlines.
“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 in a press release.
The combined company will operate a fleet of 195 aircraft to serve 175 cities and more than 650 routes. The center of Sun Country in Minneapolis-St. Paul will still remain “an important operating hub” for Allegiant as the two airlines integrate.
The merger between the two low-cost carriers was first announced in January, with the deal valued at about $1.5 billion, including debt. It was later approved by federal regulators and shareholders of both companies.
Under the acquisition, Allegiant said it anticipates approximately $140 million in annual synergies over the next three years following the closing and integration. Those in frontline roles and operational staff will remain in their current positions, although there may be overlap at the corporate level.
Anderson added, “By bringing together two strong airlines with similar business models, we are creating a more differentiated and sustainable airline – one that is well-positioned to deliver lasting value for our customers, team members and shareholders.”
What does the merger mean for Sun Country and Allegiant customers?
There are no immediate changes for passengers on any airline, Allegiant said. They will operate as separate carriers, meaning customers can book through existing channels and access customer service through their respective airlines. Existing reservations, flight schedules and travel plans are not affected.
Two loyalty programs, Allegiant Always Rewards and Sun Country Rewards, will also remain separate until further notice.
Ultimately, Allegiant will offer “additional benefits for customers to access the combined network.”
Reporting by Kathleen Wong, USA TODAY. USA TODAY Network via Reuters Connect.