Minneapolis-based Sun Country Airlines is open to a potential tie-up with competing airlines; however, it reaffirms that this is not the full intention for the ultra-low-cost carrier’s future.
Sun Country serves up to 140 destinations across the United States
Headquartered at Minneapolis Saint Paul International Airport (MSP), Sun Country is one of the United States’ most popular ultra-low-cost carriers serving the Midwest. The airline operates to around 140 destinations across the United States, Mexico, Canada, Central America, and the Caribbean. It has a fleet of 45 passenger aircraft and 12 cargo-only aircraft operating for Amazon Prime.
Photo: Sun Country Airlines
The airline’s Chief Financial Officer, Dave Davis, noted at a recent Barclays Industrial Select Conference that the airline is open for negotiations to combine with other airlines, stressing that the airline is ‘pro merger’ and acquisitions. While this sounds promising, Davis quickly reminded everyone that a future merger or acquisition is not the airline’s base plan. Here’s what Davis had to say:
”We think there are combinations with Sun Country that make sense and we continue to look at things.
It’s certainly not our base plan, but I do believe the industry needs to consolidate on the low-cost side. It feels like some combinations are coming.”
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Sun Country Plans To Operate Its Boeing 737-800s Into Their 30s
Apparently, Sun Country Airlines does not plan to order new aircraft from any manufacturers for the time being.
Sun Country, an airline dedicated to the Midwest
The modestly sized Sun Country Airlines predominantly serves the Midwest, with various seasonal operations to popular tourist destinations. Behind the scenes, the airline also has an extensive partnership with multi-national technology company Amazon and provides 12 dedicated Boeing 737-800BCF aircraft to operate for Amazon Prime. Should any future merger or acquisition occur, its cargo operations could stall negotiations. Its fleet is outlined below, as per ch-aviation:
Aircraft |
Active |
On order |
Notes |
---|---|---|---|
Boeing 737-800 |
44 |
– |
One in VIP configuration |
Boeing 737-900ER |
One |
Four |
The first aircraft arrived from Oman Air in 2024 |
Boeing 737-800BCF |
12 |
Eight |
All operated by Amazon Air |
An extensive cargo agreement with Amazon Prime could stifle any merger conversations
While the airline currently operates 12 cargo aircraft, it has another eight on order, all destined to be operated for Amazon Prime. Cargo operations vastly differ from general passenger operations, with extensive agreements that can complicate airline mergers. Davis explained:
”The uniqueness of our model makes it a little more difficult for us. You know, we’ve got 20 freighters, which is different” from passenger-focused carriers, making some potential tie-ups less straightforward.”
While Simple Flying is not speculating whether Sun Country is already in conversations with other airlines, it comes as the airline industry is growing momentum with various airline mergers and acquisitions being tabled. Spirit Airlines has been a hot topic, with failed attempts by JetBlue and Frontier Airlines.
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How Sun Country Airlines Is Leveraging Cargo To Streamline Its Crew Operations
The carrier will grow its freighter fleet beginning next year.
Mergers are good for consumers
As reported by Reuters, Sun Country Airlines’ Chief Executive, Jude Bricker, has also noted that mergers in the ultra-low-cost airline sector could benefit consumers. JetBlue and Frontier have already attempted to acquire Spirit.
Sun Country has made it crystal clear that it is not looking for an acquisition partner and plans to remain standalone. However, it would be open to discussions if another carrier came knocking at its door. This comes as the aviation industry continues to de-thaw post-COVID.
Photo: Sun Country Airlines
Founded on July 2, 1982, Sun Country (IATA code SY) commenced operations 42 years ago on January 20, 1983. The airline’s main base remains at Minneapolis Saint Paul International Airport (MSP), and its frequent fliers can earn points via its membership program, Sun Country Rewards. The airline employs over 2,500 individuals, and its key markets include Las Vegas, Fort Meyers, Orlando, and Phoenix.
The airline has several interline agreements with:
- China Airlines
- Condor
- Emirates
- EVA Air
- Hawaiian Airlines
- Icelandair
According to the Bureau of Transportation Statistics, Sun Country is the third largest airline in Minneapolis-Saint Paul, holding around 5.8% of all operations at the airport. It trails only behind Delta Air Lines (58.08%), and SkyWest with 8.31% (which operates on behalf of Alaska Airlines, Delta Connection, and United Express).
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Examined: Sun Country Airlines’ Cargo Partnership With Amazon Air
A forward-thinking strategy that benefits both companies in the fast-paced world of e-commerce logistics.