Allegiant to Acquire Sun Country Airlines for $1.5 Billion

Allegiant, a budget airline based in the United States, has announced its intention to acquire Sun Country Airlines, another budget airline, for $1.5 billion. This move is seen as a strategic expansion for Allegiant, which has been facing increased competition in the market.

According to CNBC ^[5], the acquisition is expected to be completed in the coming months, pending regulatory approval. The deal will give Allegiant access to Sun Country's fleet of aircraft and routes, allowing it to expand its operations and increase its market share.

The acquisition is seen as a response to the increased competition in the budget airline market, which has been driven by the rise of low-cost carriers. Budget airlines like Allegiant and Sun Country have faced a surge in costs following the pandemic and the increase in domestic capacity.

The deal is expected to be finalized in the coming months, pending regulatory approval. The acquisition is seen as a strategic move for Allegiant, which is looking to expand its operations and increase its market share.

Sources

[5] Allegiant to buy rival budget airline Sun Country in $1.5 billion cash and stock deal
[8] Allegiant to acquire Sun Country Airlines for $1.5 billion