DOT Clears Allegiant-Sun Country $1.5B Merger, May Closing Expected

DOT Clears Allegiant-Sun Country $1.5B Merger, May Closing Expected

Aviation News Network Report

The U.S. Department of Transportation granted final regulatory approval April 15 for the merger between Allegiant Air and Sun Country Airlines, clearing the last major hurdle for the $1.5 billion deal. The DOT authorization satisfies the final remaining regulatory condition for Allegiant's acquisition of Sun Country.

The cash-and-stock transaction, originally expected to close in the second half of 2026, is now projected to finalize as early as May 13, pending shareholder votes scheduled for both airlines on May 8. U.S. antitrust clearance was obtained in mid-March prior to this final approval.

Post-closing, the carriers will operate independently under common ownership while maintaining separate business models and routes. Both airlines are pursuing a single operating certificate over approximately 14 months, allowing time to consolidate safety protocols without immediate integration. SCA-ALPA leadership stated they are "committed to 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."