The U.S. Transportation Department (DOT) has approved the transfer of international route authorities following Allegiant Air’s acquisition of Sun Country Airlines.
The department found the transfer to be in the public interest, saying the combination would not materially harm competition and would strengthen the carriers’ ability to compete in international leisure markets. No objections were filed after the application was submitted in March.
The ruling transfers and reissues the international certificates held by both airlines so they may be operated by either Allegiant or Sun Country. However, the DOT imposed a condition preventing both carriers from using the same authority where bilateral air service agreements limit U.S. designation to a single airline.
The DOT said the airlines’ networks are largely complementary, adding that among more than 650 nonstop routes operated by the two carriers, only one overlaps—between Appleton, Wisconsin, and Fort Myers, Florida. The department also accepted the airlines’ argument that the route faces competition from multiple larger carriers and that neither airport is constrained by slots or gates.
The approval follows the completion of the acquisition on May 13, about four months after Allegiant Travel Company unveiled plans to acquire Minneapolis-based Sun Country. The companies are working toward obtaining a single operating certificate, a process expected to take more than a year, while ultimately unifying the combined airline under the Allegiant brand.
According to the latest DOT order, the transaction will preserve both airlines’ existing international authorities, including blanket Open Skies rights and scheduled authority for U.S.-Mexico services. The department said the merger would not reduce international market access for other U.S. airlines and could improve the combined company’s ability to compete internationally by pairing Allegiant’s domestic leisure network with Sun Country’s scheduled services to Canada, Mexico, Central America and the Caribbean.
Allegiant currently operates a fleet of about 125 aircraft serving more than 120 domestic destinations and does not offer scheduled international service. However, it occasionally operates international charters. Sun Country operates about 70 Boeing 737 aircraft, including passenger and freighter variants, and serves about 90 destinations.
Speaking at the CAPA Airline Leader Summit Americas 2026 after the acquisition closed, Allegiant CEO Greg Anderson said the combined carrier’s fleet flexibility and strong asset base were central to the transaction’s rationale. He said that about 163 aircraft are owned outright, representing more than $2 billion in equity value, while also confirming the airline expects to deploy Boeing 737 MAX aircraft across former Sun Country routes as the two operations become increasingly integrated.
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