Sun Country Airlines would prioritise Boeing 737 operators that have similar approaches to scheduled passenger service and hauling freight in a potential airline combination partner.
That is according to chief executive Jude Bricker, who identifies Alaska Air Group – parent of Alaska Airlines, Hawaiian Airlines and regional carrier Horizon Air – as a likely partner for the Minneapolis-based low-cost carrier.
“I think there are a lot of aspects that would make us fit well with others, but the thing about the business model that may be complex to some others is probably the cargo business,” Bricker said during the JP Morgan industrials conference on 11 March.
“It’s unique,” he continues. ”I think other airlines who do charter flying and a scheduled-service business could fit in well… We would fit in best with other carriers that schedule in a similar way.”
“That said, Alaska just bought Hawaiian, and Hawaiian’s got a big Amazon deal; that’s probably the thing that comes to mind.”
It is unclear whether Alaska and Sun Country have engaged in acquisition discussions. Alaska Air Group closed its deal to acquire Hawaiian last year and is in the process of merging the airlines onto a single operating certificate.
Some synergy could be had in a potential Alaska-Sun Country combination. Sun Country is ramping up flying cargo on behalf of Amazon and anticipates flying 20 cargo-equipped Boeing 737-800s on behalf of the retailer by year-end.
Alaska has a standalone cargo arm and was an all-737 operator prior to acquiring Hawaiian, which operates a growing fleet of cargo-converted Airbus A330s for Amazon.
Sun Country’s base in Minneapolis would give Alaska a mid-continent hub in addition to its headquarters in Seattle and Honolulu, and more narrowbody jets in a tight market for aircraft.
Bricker’s comments come weeks after Dave Davis, the discounter’s chief financial officer, described Sun Country as “pro-M&A” – referring to mergers and acquisitions – and suggesting that multiple “combinations are coming” to the US airline industry.
Acquisition talk in the sector has ramped up following the inauguration of US President Donald Trump. But it remains unclear how any such deals would be affected by weeks of turmoil in US markets, and recent bearish comments on the state of the economy from executives at American Airlines and Delta Air Lines.
