ByMARTHA WILLIAMS, US REAL ESTATE & CONSUMER REPORTER
Twobudgetairlines have joined forces in a major shake-up of America’s low-cost travel market - just days after rival Spirit dramatically went bust.
Allegiant Air has completed its takeover of Sun Country Airlines, creating a far larger discount carrier aimed at bargain-hunting holidaymakers and travelers in smaller US cities, the company said on Wednesday.
The blockbuster deal comes at a grim time for the budget airline industry after Spirit Airlines collapsed on May 2 following years ofmounting financial problemsand soaring jet fuel prices.
Spirit’s downfall sparked chaos for millions of passengers, leaving travelersscrambling for refunds, replacement flights and affordable ways to travel around the country.
Now Las Vegas-based Allegiant is betting that swallowing up Sun Country will help it weather the storm as rising fuel costs andinflationsqueeze no-frills airlines across America.
When the merger was first unveiled in January, Allegiant valued the deal at roughly $1.5 billion, including debt.
‘Today marks a defining moment in Allegiant’s history as we officially join forces with Sun Country,’ Allegiant CEO Gregory Anderson declared.
He said the expanded airline would give customers greater access to low-cost flights across the US.
Allegiant Air revealed on Wednesday it has completed its takeover of Sun Country Airlines
Source: Drudge Report
