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Sun Country Airlines to Merge Fully into Allegiant Following FAA Certification

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RegulatoryBy The Touch & Go EditorialPublished Jul 9, 6:15 PM3 min read

Sun Country Airlines to Merge Fully into Allegiant Following FAA Certification

Sun Country Airlines will cease independent operations after merging with Allegiant Air, creating a combined leisure carrier with nearly 200 aircraft and extensive US and international routes.

The gist

Sun Country Airlines will disappear as a standalone brand once merged with Allegiant Air under a single FAA certificate, forming a major leisure airline.

Sun Country Airlines is preparing to end its independent operations following its merger with Allegiant Air. The transition to a single operating certificate from the Federal Aviation Administration (FAA) will mark the full integration of the two carriers into one combined airline. Together, they will operate a leisure-focused network serving about 22 million passengers each year, covering nearly 175 cities through more than 650 routes with a fleet of around 195 aircraft.

The merger, completed in May 2026, merged Allegiant's point-to-point network with Sun Country's mix of scheduled, charter, and cargo services to create the United States' eighth-largest airline. While both airlines currently operate separately as integration efforts continue, the long-term strategy calls for all flying operations to fall under the Allegiant brand once FAA approval of a unified operating certificate is granted. This certification process is critical, as it requires harmonizing safety, training, and operational standards across both airlines.

Sun Country entered the merger with a Boeing 737 Next Generation-dominant fleet comprising 70 aircraft, including 47 configured for passenger service and 20 for cargo operations supporting Amazon. Allegiant operates a mixed fleet that includes the Airbus A320 family and Boeing 737 MAX jets. At closing, the combined company held 195 aircraft with 30 on order and options for 80 additional jets, positioning for future growth.

Despite the eventual disappearance of the Sun Country brand, the Minneapolis-St. Paul International Airport hub remains strategically significant. Allegiant representatives emphasized a measured and deliberate integration process focused on operational reliability, customer experience, and employee communication. They confirmed maintaining a major presence in Minneapolis-St. Paul is a priority as the two airlines consolidate.

Founded in 1982, Sun Country evolved from a traditional scheduled airline to a hybrid, leisure-focused carrier emphasizing seasonal demand, charter operations, and cargo. Its fleet of 20 Boeing 737 freighters plays a vital role in its cargo business, notably supporting Amazon's logistics network. This merger brings together Allegiant's focus on smaller community connections and Sun Country's access to larger metropolitan and international leisure markets, broadening the combined network's reach across North America and the Caribbean.

Airline mergers of this scale involve intricate regulatory and operational integration challenges. Beyond securing regulatory approvals, the carriers must merge reservation systems, loyalty programs, maintenance operations, and flight crew procedures. These complex steps are essential before presenting a unified brand and operating certificate to the public.

Financially, the merger is valued at about $1.5 billion including debt. Allegiant expects to realize approximately $140 million in annual synergies within three years by leveraging procurement efficiencies, optimizing fleet utilization, and expanding network opportunities. Both airlines avoid the complex hub-and-spoke model, instead relying on flexible capacity management and seasonal scheduling to maximize efficiency.

Though the Sun Country name will fade, elements of its operation—the aircraft, employees, Minneapolis hub, cargo capabilities, and leisure route network—will become integral to Allegiant's expanded airline platform. The final transition timeline hinges on FAA approval and the full operational integration of the two carriers.

Fleet-wise, Allegiant is significantly larger, operating 128 jets predominantly from the Airbus A320 family, with these aircraft averaging 15 years in age. Its Boeing 737 MAX 8-200 jets average just over one year old. In comparison, Sun Country's 69-aircraft fleet consists solely of Boeing 737s, including passenger and freighter variants. This complementary mix presents opportunities for fleet optimization under the new combined airline.

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Financing the Pro Pilot Dream Without Getting Scammed
RegulatoryJul 9, 12:00 PM

Rising Costs and Predatory Loans Challenge Aspiring Pro Pilots Financing Training

When I was in my early teens, I once asked an older pilot if he had any advice for someone just starting flight training, and he half-jokingly replied, "Ah, yes, have rich parents!" I didn't quite recognize the sage wisdom of this advice and failed to follow it, having had the temerity to get myself born into a large family of rather modest means. So I scrapped and schemed and worked a number of odd jobs through my teen years to pay for primary training and then went off to college and amassed an eye-watering level of student loan debt while completing my advanced ratings, all to graduate just after the 9/11 attacks. In retrospect I was fortunate. My seemingly poor timing put me in a very good position when the pilot shortage finally gathered steam, and as expensive as flight training seemed then, it has become even more so. It was also an era of easy borrowing and low interest rates. If you, like me, lacked the foresight to be born into wealth and are now trying to finance your dream of becoming a professional pilot, you face greater obstacles than I ever did. Post-COVID inflation has made most things more expensive, and everything in aviation from used aircraft to engine overhauls to insurance has outpaced it. Meanwhile, interest rates have skyrocketed, with prime lending rates above 8 percent for a full year now and most unsecured loans at least 3 percent above that. Few reputable banks are offering noncollege flight training loans these days, and this void has been filled by lenders who can be described as little better than loan sharks. Predatory interest rates of 17 percent or more are common.  Sadly, many of the flight schools appear to be willing accomplices, prominently advertising "easy" financing "as low as 4.5 percent" or some similarly unrealistic rate. Many of their partner lenders will not reveal actual rates or terms until the student has already been accepted to the training program, with a proposed start date. Every week there are posts on aviation forums by students who have just learned, shortly before starting training, that their proposed $130,000, 15-year loan will end up costing $250,000 or more, with monthly payments above $2,000. Unfortunately, many see little alternative but to sign on the dotted line, justifying the terms with optimistic career earnings projections and the perceived rush to get their ratings "before the pilot shortage is over." It's an effective trap for lower-income kids with a dream but not much financial literacy.  Honestly, had I been put in that position at 18 years old, I probably would have signed on the dotted line myself. I was financially illiterate at that age too. I've learned a lot about money since then, though, and about the aviation industry. Let me offer some really sound advice: Be very wary of any flight school that requires significant money up front. There are many cases of schools suddenly closing or otherwise absconding with students' funds or refusing or delaying repayment of the balance after the student has flunked out or quit midway through training. At the very least, they should require no more in your account than is required to complete the next block of training (e.g, private pilot certificate, instrument rating, etc). If a flight school's preferred lender isn't upfront about rates or terms, be very skeptical. Anyone who requires you to be accepted at the school and have a start date before revealing loan terms is likely springing a debt trap on you. A hard truth of aviation is that the majority of those who start primary training quit before earning their private pilot certificate, and the attrition rate for professional programs is similarly high. 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Having to repay a crippling amount of high-interest debt early in your career will cause a high level of stress and may well lead to career decisions that prioritize short-term earnings over long-term advancement.  There was a period during the pilot shortage when it made some sense to spend more and even accept less than satisfactory loan terms in order to finish training quickly and reach the airlines ASAP. In my opinion, that period is over. Hiring is starting to return to traditional norms, and there's even a bit of a glut of low-time pilots. It's difficult to be hired at regional airlines at 1,500 hours right now, for example.  All of this points to doing your training in a way that minimizes borrowing until interest rates come down. First, get as far into your training as you can while paying cash. If you have a decent job now, pay cash to train toward a private pilot certificate at a local flight school while still working. Make the decision to quit and take on debt only once you have your certificate. If you don't have a job that will pay for primary training, put major effort into securing aviation scholarships and grants. Most aviation organizations offer them, and you should apply for every single one. Some are relatively small, but the dollars add up, and there's a multiplicative effect as your name gets out there. In fact, this is a fantastic way to get a head start on networking. When you reach the point that you simply have to finance your training, shop around. You'll be surprised to find there's a fair amount of variance among private student loan lenders—not all are loan sharks. If your intended school is pushing use of a predatory lender, I'd be very skeptical about training there. After all, when the lending is more lucrative than providing the actual training, that makes the training a loss leader—and quality is likely to suffer accordingly. READ MORE: 6 Mistakes to Avoid When Looking for Pilot Training Loan s Rates vary significantly based on credit scores and history. If you know that you'll be applying for loans in the next few years, put a strong effort into increasing your credit history and scores now. Alternatively, you'll get better rates by having a cosigner with good credit. This doesn't need to be a parent, but given that they'll share responsibility for the loan with you, you had best have a good relationship and proven yourself trustworthy to anyone you ask to cosign on a loan. The Federal Reserve is expected to start lowering interest rates next summer. As long as your lender does not tack on substantial origination fees, you may well be better off taking multiple smaller loans throughout your training, versus one big loan at the start. And while variable rate loans can be a gamble, I think they're a decent bet now, so long as yours is adjusted monthly or quarterly and is tied to a fair index (the former standard, London Interbank Offered Rate [LIBOR], has been discontinued, and Secured Overnight Financing Rate [SOFR] is the best replacement).  Finally, the best interest rates going these days in the U.S. are for federal direct subsidized and unsubsidized Loans. For the 2023-24 school year, they're set at 5.5 percent for undergraduate students and 7.05 percent for graduate/professional students. The catch is these loans can only be used at nationally accredited institutions, which largely limits you to college flight programs (both four-year and two-year). With pilot supply and recruiting returning t

Endurance testing starts for VK-800 intended to power new Russian utility aircraft
RegulatoryJul 9, 5:32 AM

VK-800 engine begins 150-hour endurance tests for Russia's LMS-901 Baikal and other light aircraft

Variants of engine will be used on LMS-192 Osvey and LMS-901 Baikal as well as light trainer. Endurance testing of Russian aerospace firm UZGA's VK-800 engine has commenced, with the powerplant set to run for 150h on a dedicated ground rig. The engine is intended to power at least three aircraft models. These comprise the LMS-901 Baikal utility aircraft, the twin-engined LMS-192 Osvey regional transport — being developed jointly with Belarus — and the UTS-800 light trainer. The engine variants for these models are respectively the VK-800SM, the -800S1 and the -800SP. UZGA says the endurance test commenced "on the eve" of the Innoprom industrial exhibition in Ekaterinburg which opened on 6 July. The company presented the VK-800, which has an output of 806-877hp, as part of its display at the show. UZGA says the engine is being tested at "maximum operating conditions", allowing assessment of stability and reliability. The company adds that flight tests of the UTS-800 will "soon begin". The single-engined aircraft features composite structure, a 'glass cockpit', and lightweight ejection seats. Development prospects for light aviation was discussed during a forum at the Innoprom event. Federal air transport regulator Rosaviatsia's chief, Dmitry Yadrov, stated that the Baikal aircraft is expected to secure certification next year with the Osvey following at the end of 2029. He says domestic operators are requesting 127 such aircraft by 2035. The Baikal is intended to replace the Soviet-era Antonov An-2, but Yadrov highlighted the need to preserve the An-2 fleet "until a fully-fledged production replacement becomes available". He says a new type certificate for the An-2 was recently signed, enabling assignment of responsibility for the type's support and modernisation — including engine upgrades — to the Siberian aviation research institute SibNIA. The An-2 remains a "vital element of transport accessibility", adds Yadrov. United Aircraft chief Vadim Badekha, during the forum, stated that the aerospace firm was ready to establish partnerships for projects in the light aviation sector, and offer production sites such as its Sokol plant in Nizhny Novgorod. "We understand perfectly well that entering a large, serious, and extensive production requires significant investment," he said. "We have established the necessary capacity. And we are ready to provide this capacity, including for the launch of a major series of light aircraft."

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