What Sun Country sale means for MSP travelers
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Sun Country is saying all the right things about what a sale to Allegiant would mean for the Twin Cities, but time will tell if this is good for the local economy.
Catch up quick: Sun Country and Las Vegas-based Allegiant announced the acquisition Sunday in a deal that values the hometown airline at $1.5 billion.
- Allegiant is about twice the size of Sun Country and will become the new headquarters for the combined company, if the deal is approved by federal regulators.
The latest: The two companies have said they will maintain a significant presence in the Twin Cities and Sun Country CEO Jude Bricker told investors Monday morning that "we're going to see more seats and lower fares here in our home market."
- Allegiant's average fare is $58 and Sun Country's is $95, according to slides shared with investors. Allegiant offers fewer frills than Sun Country.
Yes, but: Industry expert Kyle Potter of Thrifty Traveler notes that Allegiant's identity "is built around avoiding competition with other carriers." Delta has 70% of the market share at MSP.
- Sun Country offering service to the same cities as Delta forces Delta to be more price competitive, he wrote.
- "A long history of airline mergers suggests that there could be reductions in Minneapolis down the road."
Between the lines: Sun Country told investors that the merger could result in $37 million in annual cost savings.
- The airline had over 3,100 employees as of a year ago, according to financial filings. It also has a corporate office at the airport, though the airline didn't respond to an email asking how many office workers it has here.
