Allegiant Travel has completed the acquisition of Sun Country Airlines (SY, Minneapolis St. Paul International), creating “the leading leisure-focused airline in the United States,” according to its chief executive Gregory C. Anderson.

Both airlines will continue to operate as separate carriers in the near term, maintaining their respective brands as well as loyalty schemes. They have a combined fleet of 193 aircraft, comprising twenty-eight A319-100s, eighty A320-200s, and seventeen B737-8-200s under Allegiant Air’s certificate and forty-four B737-800s, three B737-900ERs (with two more coming), and twenty-one B737-800(BCF)s under Sun Country’s certificate. Allegiant also has thirty-three aircraft on order (twenty-three B737-8s and ten B737-8-200s, and eighty more on option).

Through this combined fleet, they serve nearly 175 cities. “By bringing together two strong airlines with similar business models, we are creating a more differentiated and durable airline, one well positioned to deliver lasting value for our customers, team members, and shareholders,” Anderson added.

Sun Country’s historical base in Minneapolis will remain an important operating centre for the combined company. Allegiant, meanwhile, has twenty-two bases across the United States: Allentown International, Appleton Outgamie County Regional, Asheville, Mesa Gateway Airport, Bellingham, Nashville International, Cincinnati International, Des Moines, Fort Lauderdale International, Flint, Grand Rapids, MI, Indianapolis International, Las Vegas Harry Reid, St. Petersburg/Clearwater, Punta Gorda, FL, Pittsburgh International, Provo, Savannah International, Orlando Sanford, Sarasota/Bradenton, Knoxville McGhee Tyson, and Destin-Fort Walton Beach.

Financially, Allegiant expects to realise about USD140 million in annual synergies within three years after closing the deal and integration, driven by combined network, scale efficiencies, fleet optimisation, and procurement benefits.

Besides operating scheduled passenger flights, Sun Country Airlines also offers cargo operations for Amazon Prime Air, and has charter contracts with casinos, Major League Soccer, collegiate sports team, and the US Department of Defense. This will complement Allegiant’s own existing charter business and diversify the combined revenue base, the company said in a statement.

Anderson will serve as CEO of the combine company, with Robert Neal as president and chief financial officer. Jude Bricker, Sun Country’s former CEO, was appointed as a member of the board of directors.