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As I first wrote about back in January, Allegiant is working to acquire Sun Country Airlines. This received US antitrust clearance in March and this week the two carriers have taken a major step toward completing their proposed merger by announcing that the US Department of Transportation (DOT) has approved their joint interim exemption application.
The approval allows both airlines to continue operating as separate carriers under common ownership once the transaction closes (pending further regulatory action). This marks the final regulatory hurdle tied to the deal and clears the way for the companies to move toward completion.
The transaction still requires approval from shareholders of both companies. Special meetings scheduled for May 8th. If those approvals are secured and remaining conditions are met or waived, the acquisition could close as early as May 13th.
Under the terms outlined, Allegiant and Sun Country will maintain independent operations after the deal is finalized. Each airline will preserve its existing business model, route network, and customer experience while gradually working toward a single operating certificate in the future. The structure is designed to ensure continuity for customers and employees while allowing both carriers to retain their distinct identities. Allegiant is known for its leisure-focused, ultra-low-cost model centered on underserved markets, while Sun Country operates a hybrid model that includes scheduled service, charter operations, and cargo flying.
Both companies say they are continuing to collaborate closely to prepare for integration with a focus on maintaining safety, service quality, and operational performance throughout the transition. The proposed acquisition reflects a broader trend of consolidation in the airline industry, as carriers seek scale, efficiency, and diversified revenue streams in an increasingly competitive environment. If completed, the combination of Allegiant and Sun Country could create a stronger player in the leisure travel segment while maintaining flexibility through their dual-brand approach (similar to Hawaiian and Alaska Airlines).
Gregory C. Anderson, CEO of Allegiant, said:
This approval underscores the strength of our shared vision and the thoughtful approach both teams have taken throughout this process. We remain focused on bringing these organizations together in a way that builds on their strengths, while positioning the combined company for long-term growth and resilience.”
Jude Bricker, President and CEO of Sun Country, added:
We appreciate the DOT’s review and approval of our joint request. This milestone allows us to move forward with confidence while continuing to serve our customers and communities without disruption.”
Anthony’s Take: These two low-cost carriers stand a better chance of surviving together than alone. It’s rough these days for airlines and the smaller ones like JetBlue and Spirit are struggling to keep operations going.
(Image Credits: Allegiant and Sun Country.)
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