DOJ provides Early Clearance for Proposed Allegiant-Sun Country Merger

‍LAS VEGAS/MINNEAPOLIS – The United States Department of Justice Antitrust Division provided early termination of the waiting period required by U.S. law, clearing away a hurdle in the proposed merger of vacation-focused U.S. carriers Allegiant Air (G4) and Sun Country Airlines (SY).

"We are pleased to receive U.S. antitrust clearance from the Department of Justice," said Allegiant CEO Greg Anderson.  "We remain confident that this combination will deliver meaningful benefits for our customers, team members, and the communities we serve. Together, Allegiant and Sun Country will create a stronger leisure-focused airline, offering a broader network, more travel options, and increased long-term value creation for our shareholders," he said.

While this action is a major procedural step in the merger, other review and approval steps remain required by the U.S. Department of Transportation and the shareholders of each airline.  The merger is now expected to be completed in the second or third quarter this year.

Merger of U.S. ultra-low-cost carriers focused on leisure travel

On January 11, Las Vegas-based Allegiant and Minneapolis-based Sun Country announced their intent to merge, under which Allegiant will acquire Sun Country in a cash-and-stock transaction.  Once finalized, the combined airline will create a leading leisure-focused U.S. airline with regular and seasonal service to popular domestic and international leisure destinations across the United States, Central America, and the Caribbean.

Founded in 1997, Allegiant serves 128 U.S. airports, not including charter destinations, with two additional destinations commencing this spring.  Founded in 1992, Sun Country serves a network of 105 regular and seasonal destinations, primarily from its main base at Minneapolis-Saint Paul International Airport (MSP). 

In addition, SY operates a fleet of 20 converted Boeing 737-800 freighters for Amazon Prime Air from its main cargo base at Cincinnati/Northern Kentucky International Airport (CVG).