Allegiant, the airline that carries more than half of Lehigh Valley International Airport’s passengers each year, on Sunday announced merger plans with Sun Country Airlines, a move that could bring Allegiant passengers more access international destinations.
The two companies said the merger will create “one of the most adaptable and resilient airline models in the industry.”
“This combination is an exciting next chapter in Allegiant and Sun Country’s shared mission in providing affordable, reliable, and convenient service from underserved communities to premier leisure destinations,” Allegiant CEO Gregory Anderson said in a news release. “Together, our complementary networks will expand our reach to more vacation destinations including international locations.”
Allegiant, which is headquartered in Las Vegas, will acquire Minneapolis-based Sun Country in a cash and stock deal worth about $1.5 billion. Allegiant shareholders will own about two-thirds of the combined company when the deal closes.
The companies said the merger will provide passengers with more destinations and more frequent flights. It will have more than 650 routes across Allegiant’s small and mid-sized airports and Sun Country’s larger cities, expanding nonstop service to popular vacation spots. Sun Country’s international network across Mexico, Central America, Canada and the Caribbean means expanded service to destinations in those countries.
The combined company will operate under the Allegiant name, although each airline will operate separately until the Federal Aviation Administration provides a single operating certificate that would allow the airlines to combine operations, procedures and safety protocols. There will be no immediate impact to ticketing, flight schedules or travel experience, the airlines said, and customers should continue booking flights on each airline as they do today.
The deal is expected to close in the second half of this year, pending regulatory and shareholder approvals.