DOT Approves Allegiant-Sun Country Merger, Clearing Path to May Vote

DOT Clears Final Hurdle for Low-Cost Carrier Merger

The U.S. Department of Transportation granted a joint interim exemption on April 16, allowing Allegiant Air and Sun Country Airlines to proceed with their proposed $1.5 billion merger. This regulatory approval clears the final condition required to close the deal, which was announced in January.

Deal Structure and Timeline

The transaction values Sun Country at $18.89 per share in a cash-and-stock arrangement. Under the approved structure, both airlines will operate independently under common ownership while retaining their distinct business models and route networks. The combined entity aims to serve 22 million customers annually across nearly 175 cities. Shareholder meetings for both airlines are scheduled for May 8, with potential closure as early as May 13 if approved.

Industry Impact

The Sun Country Airlines Pilots Association has committed to prioritizing safety and job security during the integration process, emphasizing "protecting the interests of Sun Country pilots while working toward a fair and equitable integration that champions safety, prioritizes job security, and provides industry-standard compensation and benefits." The merger follows earlier antitrust clearance via the early termination of Hart-Scott-Rodino Act waiting period in March.