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Allegiant shows a willingness to think differently in early stages of Sun Country merger

Premium Analysis

During the post-pandemic years, when the viability of ultra-low cost carriers in the US came under intense scrutiny, niche players Allegiant Air and Sun Country Airlines stayed above the fray as they avoided direct competition with the country's largest operators.

Now that Allegiant has closed on its acquisition of Sun Country, it has opted to adopt portions of Sun Country's strategy, including a decision to give passengers complimentary drinks. Plans are also under way to debut Allegiant's version of a first class, which shows a willingness to adapt in a changing US marketplace.

Given these recent changes, the merger of Allegiant and Sun Country should be one of the more interesting tie-ups to watch, and it reflects a certain openness at Allegiant to think differently.

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