Bill Lukitsch
Star Tribune
(TNS)

Allegiant Travel CEO Greg Anderson assured Minnesota’s airport boosters and civic leaders Thursday the acquisition of Sun Country Airlines will be a win for travelers and the state.

Though he acknowledged some turbulence out of the gate, Anderson said the combined leisure airline will cherry-pick the best parts of both passenger carriers for its customers. He said Allegiant has already learned from Sun Country how to run a better low-cost airline — and hopes Minnesotans unfamiliar with the brand will come to know it as trustworthy and budget-friendly.

“We want you to know us for affordable fares, for convenience, for reliability and a great experience,” Anderson said, adding that it is “incredibly important to me personally” that the combined operation carries forward Sun Country’s 40-year legacy as a made-in-Minnesota airline.

The Las Vegas airline’s chief executive spoke during a fireside chat with Metropolitan Airports Commission CEO Brian Ryks at the State of the Airport, an annual luncheon and mixer for Minnesota business, political and civic leaders.

During the 30-minute conversation, Anderson said the company is navigating some unexpected challenges but is “excited about what’s ahead” at MSP.

Anderson’s visit came as local industry leaders — and some air travelers — are watchful of Allegiant’s stewardship.

Allegiant acquired Sun Country in a $1.5 billion deal this spring after sailing through federal regulatory approvals. Despite little route overlap between the two carriers, the merger immediately raised questions among consumer advocates about Allegiant’s future commitment to MSP, where Sun Country ranks as a direct competitor to Delta Air Lines, the airport’s dominant carrier.

For now, Allegiant and Sun Country run like two separate airlines, with different fleets, employee uniforms and route networks. MSP is still the combined company’s largest operating base, even larger than Las Vegas, where the company is headquartered.

Executives plan to ultimately retire Sun Country’s logo and fly under the Allegiant banner, though a full integration may take years. Corporate jobs are moving to Las Vegas, but employees who work closest to airplanes landing at MSP — pilots, flight attendants, mechanics — have assurances their jobs are secure.

Allegiant’s leaders have vowed to grow the airline’s presence in the Twin Cities over time, promising more travel destinations and competitively priced airfares.

That rosy picture has yet to take shape. In the months since the deal closed, Sun Country slashed flights to address an unexpected spike in pilot resignations. The local union representing Sun Country’s pilots has publicly tussled with Allegiant, raising issues with an ongoing legal battle over compensation for training pilots.

Over the summer, Sun Country, which annually flies the second-most passengers at MSP, cut its August and September schedules significantly to meet an unexpected rise in pilot resignations and continued high demand from its contract to shuttle cargo for online retailer Amazon.

Sun Country has said it is working to minimize disruptions for customers and rebuild its workforce. Anderson said in August additional cancellations were likely through the end of the year, though the goal is “to restore capacity in the Twin Cities as quickly as we can.”

Sun Country is on pace to cut MSP flying nearly 9% this quarter, according to data from Cirium, an aviation analytics company.

September flying is down 40% from a year earlier. In October, the airline is cutting its schedule by 20% compared to last year.

Anderson said the reductions were unfortunate disruptions to customers, employees and the airport. But he stressed those setbacks are temporary.

“This is short term. Our long-term strategy with the Twin Cities is to grow,” Anderson said. “We took a step back; now the team’s focused on taking several steps forward.”

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