Sun Country Airlines Explained

Airline:Sun Country Airlines
Founded:
Iata:SY
Icao:SCX
Callsign:SUN COUNTRY
Aoc:SCNA220K[1]
Bases:Minneapolis–Saint Paul International Airport
Frequent Flyer:Sun Country Rewards
Fleet Size:56
Parent:Sun Country Airlines Holdings
Destinations:172[2]
Traded As:NASDAQ:
S&P 600 Component
Headquarters:Minneapolis, Minnesota, United States
Revenue: (2022)
Operating Income: (2022)
Net Income: (2022)
Num Employees:2,500

Sun Country Airlines is an ultra-low cost airline in the United States. Based at Minneapolis–Saint Paul International Airport with headquarters on airport property, Sun Country operates to about 140 destinations in the United States, Canada, Mexico, Central America and the Caribbean. The airline also has significant charter operations and is a contract cargo operator for Amazon Air.

History

Early years and bankruptcies (1983–2008)

Sun Country was incorporated on 2 July 1982.[3] It received its certificate of public necessity and convenience from the Civil Aeronautics Board on January 17, 1983.[4] First revenue flight was 20 January 1983 from Sioux Falls to Las Vegas, using a Boeing 727 aircraft leased from Air Florida.[5] [6] The airline's original staff consisted of sixteen pilots, sixteen flight attendants, three mechanics and one office person. A number of the original employees had previously worked for Braniff International Airways, which ceased operations on May 12, 1982.[7] [8] The company's founder and first President/CEO was Captain Jim Olsen, who also acted as Chief Pilot. His wife, Joan Smith-Olsen, acted as Chief Flight Attendant and Head of Inflight Operations.[9]

In 1988, its headquarters were located on the grounds of the Minneapolis–Saint Paul International Airport.[10] In 2001, the company suspended operations due to financial troubles.[11] In July 2006, the airline was acquired by Petters Group Worldwide and Whitebox Advisors.[12]

Following the replacement of interim CEO Jay Salmen by Stan Gadek, former CFO of AirTran Airways, Sun Country was nearly finished by the major recession of 2008 and the revelation of financial fraud.[13] The airline furloughed 45 of its 156 pilots and scaled back its summer schedule due to rising fuel costs. Sun Country indicated it had hoped to get up to $50 million in loans or other financial help from the state of Minnesota and the airports commission.[14] In September 2008 the carrier reduced, and in some cases eliminated, flights to San Francisco and Los Angeles. It also began charging for the first checked bag.[15] At the end of September 2008, Gadek called for a 50% pay-deferral to all remaining employees. Tom Petters resigned after an FBI probe discovered that the airline had suffered financial fraud on a massive scale.[16] Following this, the airline filed for Chapter 11 bankruptcy protection for the second time, on October 6, 2008.[17]

Rebuilding and Davis brothers ownership (2011–2017)

In July 2011, Sun Country was bought out of bankruptcy for $34 million by the Davis family, owners of Cambria, a Minnesota-based countertop company.[18] [19] Marty Davis, CEO of Cambria, became chairman.

In 2015, the Sun Country board hired Zarir Erani as president and CEO.[20] The airline had a net income of $27 million in 2015, followed by a 41% drop to $16 million in 2016.

In July 2017, after more than a year of missed monthly earnings projections, Davis replaced Erani as interim President and CEO, with Erani moving to other duties within the Davis family of companies. Jude Bricker, previously of Allegiant Air, was appointed as CEO one week after Erani stepped down.[21] As part of its strategy, Sun Country had begun to move towards being a "no frills" airline.[22]

Apollo Global Management ownership (2017–present)

On December 14, 2017, the Davis brothers announced they would be selling the airline to funds affiliated with New York Based Apollo Global Management for an undisclosed amount.[23]

On December 17, 2019, Amazon Air bought a minority stake in Sun Country from Apollo, with plans for the airline to operate cargo flights under the Amazon Air brand.[24] As Sun Country's passenger model is heavily leisure focused, this deal is designed to help stabilize revenues during non-peak seasons. In December 2019 Sun Country announced they would begin operating cargo flights for Amazon. Sun Country will initially operate ten cargo jets for Amazon Air.[25] The airline operated their first cargo flight for Amazon in May 2020.[26] [27]

On March 17, 2021, Sun Country became publicly listed and traded on the NASDAQ under the ticker SNCY.[28]

As of June 2024, Sun Country's cargo fleet operated under contract with Amazon Air has grown to 12 airframes. On June 20, 2024, Sun Country and Amazon Air announced an extension to their contract out to 2030. Under this new contract, Amazon Air will transfer an additional 8 737-800BCF aircraft to Sun Country, increasing the airline's cargo fleet to 20 airframes.[29]

Corporate affairs

Business trends

Recent key figures for Sun Country Airlines Holdings, Inc. (which include the passenger operations of Sun Country Airlines and its cargo business for Amazon Air) are (years ending December 31):

20092010201120122013201420152016201720182019202020212022
Revenue ($m)202239308361410518560197385701401623894
Net profit after tax ($m)1114152227162825.94681.217.7
Number of employees (at year end)1,3121,8891,5491,5321,6992,1812,510
Number of passengers (m)1.61.91.82.52.63.61.72.73.6
Passenger load factor (%)7072.680.278.580.482.482.564.974.783.5
Number of aircraft (at year end)19263031434854
Notes/sources[30] [31] [32] [33] [34] [35] [36] [37]

Services

Sun Country previously offered two classes of service with First Class and Economy seats, but when the airline was sold to Apollo Global Management, they changed the airline to an ultra-low-cost carrier with aircraft operated in an all-economy configuration. Sun Country now offers three variations of economy seats: Best, Exit Row, and Standard.[38] [39]

Sun Country Rewards, the airline's frequent flyer program, was established in November 2018, and replaced an older program called Ufly.[40] In 2023, Sun Country was named the best low cost carrier in North America at the Paris Airshow's World Airline Rankings.[41]

Destinations

Top domestic markets (November 2021 – October 2022)[42]
RankAirportPassengersMarket share (%)
1Minneapolis/St. Paul, Minnesota1,425,10010.11%
2Las Vegas, Nevada172,1800.73%
3Fort Myers, Florida154,7402.98%
4Orlando, Florida143,1200.66%
5Phoenix, Arizona138,1300.64%
Other markets999,4600.13%

See main article: List of Sun Country Airlines destinations., Sun Country Airlines flies to 81 destinations and operates more than 100 routes throughout the Caribbean, United States, Canada, Mexico and Central America.[43] [44] Many Sun Country destinations are seasonally served as demand grows and falls throughout the year.

The airline additionally provides charter service for the United States Armed Forces[45] and NCAA football teams.[46] The airline has provided charter service to Major League Soccer teams since 2020 and became the league's official carrier in 2022.[47] Sun Country has a number of casino charter contracts.

Interline agreements

Sun Country also has interline agreements with the following airlines:[48]

Fleet

Current fleet

, Sun Country Airlines operates an all-Boeing 737 Next Generation fleet composed of the following aircraft:

Sun Country Airlines fleet[49]
AircraftIn serviceOn orderPassengersNotes
FY+YTotal
Passenger fleet
Boeing 737-8004330156186
17676VIP charter configuration.
Boeing 737-900ER5TBAFirst aircraft to be delivered second-hand from Oman Air in 2024.[50]
Cargo fleet
Boeing 737-800BCF12Aircraft operated for Amazon Air.[51]
Total565

Historical fleet

Sun Country Airlines historical fleet[52]
AircraftTotalIntroducedRetiredNotes
Boeing 727-2004219832002
Boeing 737-700920082023
McDonnell Douglas DC-10-10619931998
McDonnell Douglas DC-10-15419942001
McDonnell Douglas DC-10-30F219951997Leased from Gemini Air Cargo
McDonnell Douglas DC-10-40119861991Transferred to Northwest Airlines

See also

Notes and References

  1. Web site: Federal Aviation Administration – Airline Certificate Information – Detail View. av-info.faa.gov. June 27, 2019.
  2. Web site: Sun Country Airlines on ch-aviation.com . ch-aviation.com . 21 November 2023.
  3. Web site: opencorporates Minnesota incorporation record for Sun Country Airlines, Inc.. opencorporates.com. opencorporeates. en. 24 July 2024.
  4. 100. Civil Aeronautics Board Reports. Civil Aeronautics Board. Sun Country Airlines, Fitness Investigation. 69–91. 2027/osu.32437000534103. free. February–March 1983.
  5. https://www.newspapers.com/image/243626730 12 pilots grounded by Braniff shutdown start own airline, Sioux Falls (SD) Argus-Leader, 20 January 1983
  6. https://www.newspapers.com/image/190583421 Ex-Braniff crew part of new charter airline, Minneapolis Star Tribune, 13 January 1983
  7. Web site: About Sun Country Airlines . www.suncountry.com . Sun Country Airlines.
  8. News: A look at Sun Country Airlines. Matt. Falcus. Airport Spotting . July 28, 2013.
  9. Web site: Sun County Airlines . Braniff Pages . July 23, 2017 . March 5, 2016 . https://web.archive.org/web/20160305122549/http://www.braniffpages.com/syhistory.html . dead .
  10. "World Airline Directory." Flight International. March 26, 1988. 117.
  11. Web site: The Braniff/Sun Country Connection. The Braniff Family. February 10, 2013 . https://web.archive.org/web/20120717092642/http://www.thebranifffamily.org/suncountry.asp. July 17, 2012.
  12. Petters Group Worldwide and Whitebox Advisors Acquire Sun Country Airlines. Sun Country Airlines. October 31, 2006. January 21, 2007. dead. https://web.archive.org/web/20061114193043/https://www.suncountry.com/hometools/releases/PettersPurchase.shtml. November 14, 2006.
  13. News: Sept. 29: Sun Country workers face temporary 50% pay cut. Liz. Fedor. Minneapolis Star-Tribune. September 28, 2008. October 6, 2008.
  14. News: Sun Country asks MAC to help keep company flying . Nicole . Muehlhausen . . August 6, 2008 . October 6, 2008 . dead . https://web.archive.org/web/20141022000643/http://www.kaaltv.com/article/stories/S536806.shtml?cat=10728 . October 22, 2014 .
  15. Web site: Sun Country trims flights, and fares push higher. September 8, 2008. April 28, 2013.
  16. News: Petters resigns amid fraud investigation. . Associated Press. September 30, 2008. October 6, 2008. Elizabeth . Dunbar.
  17. News: Liz. Fedor. Sun Country Airlines files for bankruptcy . Minneapolis Star-Tribune. October 6, 2008. October 6, 2008.
  18. News: Cambria deal gives new life to Sun Country. David Phelps. StarTribune. July 21, 2011. April 28, 2013.
  19. News: Cambria Holdings paid $34 million for Sun Country Airlines. December 21, 2012. The Mankato Free Press. August 3, 2011. dead. https://archive.today/20130128031404/http://mankatofreepress.com/latestnews/x541062656/Cambria-Holdings-paid-34-million-for-Sun-Country-Airlines. January 28, 2013.
  20. News: Sun Country Airlines CEO Ousted; owner Davis steps in as he seeks successor for Erani . . Painter . Kristen Leigh . July 6, 2017 . July 7, 2017.
  21. News: Sun Country names Jude Bricker as new CEO. Painter. Kristen. July 10, 2017. Minneapolis Star-Tribune.
  22. Web site: Moseley . Jace . Sun Country Airlines Sold to Investment Giant Apollo Global Management . airlinegeeks.com . December 16, 2017 . March 16, 2023.
  23. Web site: Funds Managed by Affiliates of Apollo Global Management to Acquire Sun Country Airlines . Apollo . April 8, 2020 . 1.
  24. News: Amazon Looks to Sun Country to Boost Its Cargo Unit. Cameron. Doug. Wall Street Journal. December 17, 2019 . December 19, 2019.
  25. Web site: Amazon picks low-cost airline Sun Country to expand its cargo business. Josephs. Leslie. December 18, 2019. CNBC . December 24, 2019.
  26. Web site: Sun Country Airlines starts cargo operations for Amazon. May 11, 2020. Air Cargo News . May 15, 2020.
  27. Web site: May 24, 2021. The Amazon and Sun Country Partnership. May 25, 2021. AVIATION A2Z .
  28. News: Kilgore . Tomi . Sun Country Airlines' IPO prices above the expected range, to value company at more than $1.3 billion . Marketwatch . Dow Jones . May 16, 2021.
  29. Web site: 2024-06-20 . Amazon transferring Boeing 737-800 cargo jets to Sun Country Airlines . 2024-06-23 . Yahoo Finance . en-US.
  30. Web site: U.S. Domestic Airline Fuel Efficiency Ranking, 2017–2018. International Council on Clean Transportation . September 2019 . December 12, 2019.
  31. Web site: Bureau of Transportation Statistics. Bureau of transportation . December 4, 2019.
  32. Web site: After 15 years of turbulence, Sun Country finding clear air . MinnPost . October 31, 2014 . December 4, 2019.
  33. Web site: OST_R BTS Transtats. www.transtats.bts.gov . February 7, 2018.
  34. Web site: Former Sun Country owner learned a lesson: 'Don't fly under the radar'. Star Tribune . September 15, 2018 . November 21, 2019.
  35. Web site: An IPO for Sun Country? The airline's owner explores options. Star Tribune . August 28, 2019 . December 8, 2019.
  36. Web site: United States Securities and Exchange Commission Form S-1 Preliminary Prospectus. Sun Country Airlines Holdings, Inc. . 2021 . December 15, 2021.
  37. Web site: Sun Country Airlines Reports Fourth Quarter and Full Year 2022 Results .
  38. https://bookonboard.com/sun-country-baggage-fees/ The Sun Country Airlines Baggage Rules
  39. Web site: First Look at Sun Country's New, Smaller Seats . December 11, 2018 . Thrifty Traveler . February 26, 2019 .
  40. Web site: Sun Country is Overhauling its Rewards Program: What You Need to Know . November 2, 2018 . Thrifty Traveler . November 2, 2018 .
  41. Web site: Tribune . Gita Sitaramiah Star . Sun Country Airlines named best low-cost airline in North America . 2024-05-25 . Star Tribune.
  42. Web site: OST_R | BTS | Transtats.
  43. http://www.suncountry.com/page/1/destinations.jsp Sun Country Airlines | Destinations
  44. Web site: Sun Country Destinations . SunCountry.com . Sun Country Airlines . March 20, 2019.
  45. Web site: Sun Country Airlines – Company History . FundingUniverse.com . June 13, 2010 .
  46. Web site: Sun Country CEO: Future Growth Plans Travel Beyond Leisure flights . BizJournals.com . March 20, 2019 .
  47. News: Sitaramiah . Gita . October 27, 2021 . Sun Country Airlines to be official carrier of Major League Soccer . Star-Tribune . December 19, 2023.
  48. Web site: Airline Partners . October 26, 2021 . SunCountry.com .
  49. Web site: Sun Country Airlines Fleet Details and History. PlaneSpotters.net . May 15, 2018.
  50. Sun Country Airlines to Acquire Five 737-900ERs. GlobalNewsWire . April 4, 2023 . April 4, 2023.
  51. Web site: Amazon picks low-cost airline Sun Country to expand its cargo business . Josephs . Leslie. December 18, 2019. CNBC . December 19, 2019 .
  52. Web site: AeroTransport Data Bank. AeroTransport.org. April 3, 2015.