Inside the Sun Country Merger: Allegiant CEO Explains the Deal

Allegiant CEO Greg Anderson said in an interview with Skift that the planned merger with Sun Country is “about building on strengths,” positioning the combined airline as one of the largest leisure-focused carriers in the U.S.

Under the deal, announced Sunday, Anderson would lead the merged company, which would be headquartered in Allegiant’s home base of Las Vegas. 

In the interview, Anderson laid out the logic behind the deal, arguing that the combination of Allegiant’s leisure-focused network, Sun Country’s diversified revenue streams, and the carriers’ flexible capacity models creates a stronger platform than traditional ultra-low-cost strategies.

A Merger of Profitable Low-Cost Carriers

Anderson said Allegiant had been considering a merger since “mid-last year,” and he reached out to Sun Country CEO Jude Bricker in the fall about an offer. 

Allegiant and Sun Country are among the most profitable ultra-low-cost ca