The merger between Allegiant Air and Sun Country Airlines has been approved by the US Department of Transportation (DOT), meaning the deal could close as early as 13 May.
Announced in January, the proposal will see both airlines operate as separate carriers under common ownership. Once closed, the low-cost carriers (LCC) will work on achieving a single operating certificate (SOC), looking at consolidating routes and business models. This is expected to take 14 months.
Sun Country CEO Jude Bricker said:
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.
Some details remain to be fleshed out, with each carrier expected to meet with their respective shareholders on 8 May to finalise the conditions. The cash-and-stock transaction wasn’t expected to receive DOT approval until H2 of 2026, resulting in a positive acceleration on the deal timeline.
Allegiant CEO Gregory Anderson commented:
We remain focused on bringing these organisations together in a way that builds on their strengths, while positioning the combined company for long-term growth and resilience.
The deal has been announced during a difficult period for American LCCs. Notably, Spirit Airlines has been grappling with a second bankruptcy due to economic uncertainty and changing customer habits. The jet fuel crisis sparked by the US-Israel attacks on Iran has further destabilised the global aviation industry, making Sun Country and Allegiant’s decision to combine their businesses look all the more advantageous.
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