Sun Country Airlines Open to Mergers in ULCC Sector

Dave Davis, the president and chief financial officer of Sun Country Airlines, has expressed the airline’s interest in potential mergers and acquisitions within the ultra-low-cost carrier (ULCC) market in the United States, albeit under the right circumstances. Speaking at a recent Barclays industrial conference, Davis highlighted that while mergers are not currently a central part of Sun Country’s business strategy, they are open to opportunities that could rationalize the industry.

“Although it’s not our base plan, we see potential synergies with Sun Country that could be quite advantageous. The industry, particularly on the low-cost side, could benefit from consolidation,” Davis remarked.

Sun Country, based at Minneapolis St. Paul International, operates a versatile fleet of 58 aircraft, including forty-four Boeing 737-800s, thirteen Boeing 737-800(BCF) cargo planes, and one Boeing 737-900ER. This diverse operation spans low-cost passenger, cargo, and charter services, complicating the logistics of any potential merger or acquisition.

Davis noted the unique aspects of Sun Country’s business model, particularly its significant engagement in the cargo sector through a partnership with Amazon.com, which includes an expansion to 20 freighters. This diversification sets Sun Country apart from other carriers, potentially making integration processes more challenging.

No specific targets for acquisition or merger were mentioned by Davis during his talk. This statement comes in the wake of Frontier Airlines’ recent failed attempt to merge with Spirit Airlines, which is undergoing Chapter 11 bankruptcy reorganization and has opted to continue independently.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com