With the US airline industry buzzing over potential tie-ups, Sun Country Airlines added to the chatter on 20 February by acknowledging that it views combinations with certain competitors favourably.
Dave Davis, the discounter’s chief financial officer, said during the Barclays Industrial Select Conference on 20 February that it would consider combining with another airline, describing Sun Country as “pro-M&A” – referring to mergers and acquisitions.
”We think there are combinations with Sun Country that make sense and we continue to look at things,” he says. “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.”
Minneapolis-based Sun Country’s cargo operations on behalf of Amazon make matters more complicated, however.
”The uniqueness of our model makes it a little more difficult for us,” he says. ”You know, we’ve got 20 freighters, which is different” from passenger-focused carriers, making some potential tie-ups less straightforward.
Sun Country is planning to operate a total of 20 cargo-equipped Boeing 737-800s for Amazon Prime as it takes deliveries of eight freighters this year.
Industry momentum seems to be building toward one or more airline combinations, with Frontier Airlines making an aggressive play to acquire Spirit Airlines as it emerges from financial restructuring, and JetBlue Airways recently acknowledging that it is exploring tie-ups with potential partners.
