Allegiant to absorb Sun Country’s Amazon cargo business

Core Viewpoint - Amazon is expanding its partnership with Sun Country Airlines by outsourcing two additional cargo aircraft, coinciding with Sun Country's acquisition by Allegiant Travel Co. in a $1.5 billion deal, which includes $400 million in debt [1][2]. Group 1: Acquisition Details - Sun Country Airlines will be acquired by Allegiant Travel Co. in a cash-and-stock transaction valued at approximately $1.5 billion, which includes $400 million in debt [2]. - The merger aims to create one of the largest leisure-focused airlines, enhancing operational flexibility and capacity to meet vacation demand during peak travel seasons [2][3]. Group 2: Cargo Operations - Sun Country operates 20 Boeing 737-800 converted freighter aircraft within Amazon's air logistics network, having started with a dozen jets in early 2020 to diversify its seasonal passenger business [4]. - The airline is responsible for providing crews and maintenance for the cargo operations, which have become a significant revenue contributor [4][5]. - Following the acquisition announcement, Amazon committed to placing two additional 737-800 freighters with Sun Country, increasing the cargo fleet to 22 aircraft [6]. Group 3: Strategic Importance - The cargo partnership with Amazon is highlighted as a crucial element for revenue growth for both Sun Country and the combined entity post-merger [5][7]. - Allegiant's CEO emphasized the importance of maintaining reliable service levels in cargo operations, indicating ongoing discussions with Amazon to ensure continuity in the partnership [6].