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Sun Country Airlines

From Wikipedia, the free encyclopedia
Ultra-low-cost airline of the United States

Sun Country Airlines
IATAICAOCall sign
SYSCXSUN COUNTRY
FoundedJuly 2, 1982; 42 years ago (1982-07-02)
Commenced operationsJanuary 20, 1983; 42 years ago (1983-01-20)
AOC #SCNA220K[1]
Operating basesMinneapolis/St. Paul
Frequent-flyer programSun Country Rewards
Fleet size57
Destinations172[2]
Parent companySun Country Airlines Holdings
Traded asNasdaqSNCY
S&P 600 Component
HeadquartersMinneapolis, Minnesota, United States
Key people
RevenueIncreaseUS$894 million (2022)
Operating incomeDecreaseUS$56 million (2022)
Net incomeDecreaseUS$18 million (2022)
Employees2,500
Websitesuncountry.com

Sun Country Airlines is anultra-low cost airline in the United States. Based atMinneapolis–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 forAmazon Air.[3]

History

[edit]
One version of Sun Country's early logo.
A Sun CountryMcDonnell Douglas DC-10-10 atMiami International Airport in 1998.

Early years and bankruptcies (1983–2008)

[edit]

Sun Country was incorporated on 2 July 1982.[4] It received its certificate of public necessity and convenience from theCivil Aeronautics Board on January 17, 1983.[5] The company began offering charter service and the first revenue flight was on January 20, 1983 fromSioux Falls toLas Vegas, using a Boeing 727 aircraft leased fromAir Florida.[6][7] The airline's original staff consisted of sixteen pilots, sixteenflight attendants, three mechanics and one office person. A number of the original employees had previously worked forBraniff International Airways, which ceased operations on May 12, 1982.[8][9] 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.[10]

In 1988, its headquarters were located on the grounds of theMinneapolis–Saint Paul International Airport.[11] In 1995, Sun Country began offering scheduled flights from Minneapolis to several major cities throughout the United States. In 2001, the company suspended operations due to financial troubles.[12] In July 2006, the airline was acquired byPetters Group Worldwide and Whitebox Advisors.[13]

Following the replacement of interim CEO Jay Salmen by Stan Gadek, former CFO ofAirTran Airways, Sun Country was nearly finished by themajor recession of 2008 and the revelation that Petters Group Worldwide was operating a massive financial fraud, a $3.25 billionPonzi scheme.[14][15] 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.[16] In September 2008 the carrier reduced, and in some cases eliminated, flights toSan Francisco andLos Angeles. It also began charging for the first checked bag.[17] At the end of September 2008, Gadek called for a 50% pay-deferral to all remaining employees.Tom Petters resigned after anFBI probe discovered that the airline had suffered financial fraud on a massive scale.[14][18] Following this, the airline filed forChapter 11 bankruptcy protection for the second time, on October 6, 2008.[19]

Rebuilding and Davis brothers ownership (2011–2017)

[edit]

In July 2011, Sun Country was bought out of bankruptcy for $34 million by the Davis family, owners ofCambria, a Minnesota-based countertop company.[20][21] Marty Davis, CEO of Cambria, became chairman.

In 2015, the Sun Country board hired Zarir Erani as president and CEO.[22] The airline had a net income of $27 million in 2015, followed by a 41% drop to $16 million in 2016.[22]

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.[22] Jude Bricker, previously ofAllegiant Air, was appointed as CEO one week after Erani stepped down.[23] As part of its strategy, Sun Country had begun to move towards being a "no frills" airline.[24]

Apollo Global Management ownership (2017–present)

[edit]

On December 14, 2017, the Davis brothers announced they would be selling the airline to funds affiliated with New York BasedApollo Global Management for an undisclosed amount.[25]

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.[3] 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 forAmazon. Sun Country will initially operate ten cargo jets forAmazon Air.[26] The airline operated their first cargo flight for Amazon in May 2020.[27][28]

On March 17, 2021, Sun Country became publicly listed and traded on theNASDAQ under the ticker SNCY.[29]

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.[30]

Corporate affairs

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Business trends

[edit]

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

20092010201120122013201420152016201720182019202020212022
Revenue ($m)202239308361410518560197385701401623894
Net profit after tax ($m)1114152227162825.9−0.446−3.981.217.7
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[31][31][32][31][31][31][33][34][31][22][33][34][22][33][35][36][37][a][37][37][b][37][38][38]
  1. ^2018: Because of the restructuring of the business, financials for 2018 were reported as 'Predecessor' activity (January 1 through April 10) and 'Successor' activity (April 11 through December 31)
  2. ^2020: Activities in fiscal 2020 were severely reduced by the impact of thecoronavirus pandemic

Services

[edit]

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.[39][40]

Sun Country Rewards, the airline'sfrequent-flyer program, was established in November 2018, and replaced an older program calledUfly.[41] In 2023, Sun Country was named the best low cost carrier inNorth America at theParis Airshow's World Airline Rankings.[42]

Destinations

[edit]
Top domestic markets (November 2021 – October 2022)[43]
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%
Main article:List of Sun Country Airlines destinations

As of January 2024[update], Sun Country Airlines flies to 81 destinations and operates more than 100 routes throughout theCaribbean, United States, Canada, Mexico and Central America.[44][45] Many Sun Country destinations are seasonally served as demand grows and falls throughout the year.

The airline additionally provides charter service for theUnited States Armed Forces[46] andNCAA football teams.[47] The airline has provided charter service toMajor League Soccer teams since 2020 and became the league's official carrier in 2022.[48] Sun Country has a number of casino charter contracts.

Interline agreements

[edit]

Sun Country also hasinterline agreements with the following airlines:[49]

Fleet

[edit]

Current fleet

[edit]
Sun CountryBoeing 737-800 wearing the newest livery
Sun Country Boeing 737-800BCF operated forAmazon Air, with Sun Country titles behind the cockpit windows

As of January 2025[update], Sun Country Airlines operates an all-Boeing 737 Next Generation fleet composed of the following aircraft:

Sun Country Airlines fleet[citation needed]
AircraftIn serviceOn orderPassengersNotes
FY+YTotal
Passenger fleet
Boeing 737-8004330156186
17676VIP charter configuration.
Boeing 737-900ER14TBAFirst aircraft was delivered second-hand fromOman Air in 2024.[50]
Cargo fleet
Boeing 737-800BCF128CargoAircraft operated forAmazon Air.[51]
Total5712

Historical fleet

[edit]
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 fromGemini Air Cargo.
McDonnell Douglas DC-10-40119861991Transferred toNorthwest Airlines.

See also

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References

[edit]
  1. ^"Federal Aviation Administration – Airline Certificate Information – Detail View".av-info.faa.gov. RetrievedJune 27, 2019.
  2. ^"Sun Country Airlines on ch-aviation.com".ch-aviation.com. RetrievedNovember 21, 2023.
  3. ^abCameron, Doug (December 17, 2019)."Amazon Looks to Sun Country to Boost Its Cargo Unit".Wall Street Journal. RetrievedDecember 19, 2019.
  4. ^"opencorporates Minnesota incorporation record for Sun Country Airlines, Inc".opencorporates.com. opencorporeates. RetrievedJuly 24, 2024.
  5. ^"Sun Country Airlines, Fitness Investigation".Civil Aeronautics Board Reports.100. Civil Aeronautics Board:69–91. February–March 1983.hdl:2027/osu.32437000534103.
  6. ^12 pilots grounded by Braniff shutdown start own airline, Sioux Falls (SD) Argus-Leader, 20 January 1983
  7. ^Ex-Braniff crew part of new charter airline, Minneapolis Star Tribune, 13 January 1983
  8. ^"About Sun Country Airlines".www.suncountry.com. Sun Country Airlines.
  9. ^Falcus, Matt (July 28, 2013)."A look at Sun Country Airlines".Airport Spotting.
  10. ^"Sun County Airlines".Braniff Pages. Archived fromthe original on March 5, 2016. RetrievedJuly 23, 2017.
  11. ^"World Airline Directory."Flight International. March 26, 1988.117.
  12. ^"The Braniff/Sun Country Connection". The Braniff Family. Archived fromthe original on July 17, 2012. RetrievedFebruary 10, 2013.
  13. ^"Petters Group Worldwide and Whitebox Advisors Acquire Sun Country Airlines" (Press release). Sun Country Airlines. October 31, 2006. Archived fromthe original on November 14, 2006. RetrievedJanuary 21, 2007.
  14. ^abFedor, Liz (September 28, 2008)."Sept. 29: Sun Country workers face temporary 50% pay cut".Minneapolis Star-Tribune. Archived fromthe original on October 2, 2008. RetrievedOctober 6, 2008.
  15. ^Hughes, Art (December 2, 2009)."Tom Petters found guilty of Ponzi scheme fraud".Reuters. RetrievedNovember 17, 2024.
  16. ^Muehlhausen, Nicole (August 6, 2008)."Sun Country asks MAC to help keep company flying".KAAL. Archived fromthe original on October 22, 2014. RetrievedOctober 6, 2008.
  17. ^"Sun Country trims flights, and fares push higher". September 8, 2008. RetrievedApril 28, 2013.
  18. ^Dunbar, Elizabeth (September 30, 2008)."Petters resigns amid fraud investigation".International Herald-Tribune. Associated Press. RetrievedOctober 6, 2008.
  19. ^Fedor, Liz (October 6, 2008)."Sun Country Airlines files for bankruptcy".Minneapolis Star-Tribune. RetrievedOctober 6, 2008.
  20. ^David Phelps (July 21, 2011)."Cambria deal gives new life to Sun Country".StarTribune. RetrievedApril 28, 2013.
  21. ^"Cambria Holdings paid $34 million for Sun Country Airlines".The Mankato Free Press. August 3, 2011. Archived fromthe original on January 28, 2013. RetrievedDecember 21, 2012.
  22. ^abcdePainter, Kristen Leigh (July 6, 2017)."Sun Country Airlines CEO Ousted; owner Davis steps in as he seeks successor for Erani".Star Tribune. RetrievedJuly 7, 2017.
  23. ^Painter, Kristen (July 10, 2017)."Sun Country names Jude Bricker as new CEO".Minneapolis Star-Tribune.
  24. ^Moseley, Jace (December 16, 2017)."Sun Country Airlines Sold to Investment Giant Apollo Global Management".airlinegeeks.com. RetrievedMarch 16, 2023.
  25. ^"Funds Managed by Affiliates of Apollo Global Management to Acquire Sun Country Airlines".Apollo. RetrievedApril 8, 2020.
  26. ^Josephs, Leslie (December 18, 2019)."Amazon picks low-cost airline Sun Country to expand its cargo business".CNBC. RetrievedDecember 24, 2019.
  27. ^"Sun Country Airlines starts cargo operations for Amazon".Air Cargo News. May 11, 2020. RetrievedMay 15, 2020.
  28. ^"The Amazon and Sun Country Partnership".AVIATION A2Z. May 24, 2021. RetrievedMay 25, 2021.
  29. ^Kilgore, Tomi."Sun Country Airlines' IPO prices above the expected range, to value company at more than $1.3 billion".Marketwatch. Dow Jones. RetrievedMay 16, 2021.
  30. ^"Amazon transferring Boeing 737-800 cargo jets to Sun Country Airlines".Yahoo Finance. June 20, 2024. RetrievedJune 23, 2024.
  31. ^abcdef"After 15 years of turbulence, Sun Country finding clear air". MinnPost. October 31, 2014. RetrievedDecember 4, 2019.
  32. ^"U.S. Domestic Airline Fuel Efficiency Ranking, 2017–2018"(PDF). International Council on Clean Transportation. September 2019. RetrievedDecember 12, 2019.
  33. ^abc"OST_R BTS Transtats".www.transtats.bts.gov. RetrievedFebruary 7, 2018.
  34. ^ab"Bureau of Transportation Statistics". Bureau of transportation. RetrievedDecember 4, 2019.
  35. ^"Former Sun Country owner learned a lesson: 'Don't fly under the radar'". Star Tribune. September 15, 2018. RetrievedNovember 21, 2019.
  36. ^"An IPO for Sun Country? The airline's owner explores options". Star Tribune. August 28, 2019. RetrievedDecember 8, 2019.
  37. ^abcd"United States Securities and Exchange Commission Form S-1 Preliminary Prospectus". Sun Country Airlines Holdings, Inc. 2021. RetrievedDecember 15, 2021.
  38. ^ab"Sun Country Airlines Reports Fourth Quarter and Full Year 2022 Results".
  39. ^The Sun Country Airlines Baggage Rules, Retrieved August 13, 2021
  40. ^"First Look at Sun Country's New, Smaller Seats".Thrifty Traveler. December 11, 2018. RetrievedFebruary 26, 2019.
  41. ^"Sun Country is Overhauling its Rewards Program: What You Need to Know".Thrifty Traveler. November 2, 2018. RetrievedNovember 2, 2018.
  42. ^Tribune, Gita Sitaramiah Star (June 21, 2023)."Sun Country Airlines named best low-cost airline in North America".Star Tribune. RetrievedMay 25, 2024.
  43. ^"OST_R | BTS | Transtats".
  44. ^Sun Country Airlines | Destinations, suncountry.com
  45. ^"Sun Country Destinations".SunCountry.com. Sun Country Airlines. March 20, 2019.
  46. ^"Sun Country Airlines – Company History".FundingUniverse.com. RetrievedJune 13, 2010.
  47. ^"Sun Country CEO: Future Growth Plans Travel Beyond Leisure flights".BizJournals.com. RetrievedMarch 20, 2019.
  48. ^Sitaramiah, Gita (October 27, 2021)."Sun Country Airlines to be official carrier of Major League Soccer".Star-Tribune. RetrievedDecember 19, 2023.
  49. ^"Airline Partners".SunCountry.com. RetrievedOctober 26, 2021.
  50. ^"Sun Country Airlines to Acquire Five 737-900ERs".GlobalNewsWire (Press release). April 4, 2023. RetrievedApril 4, 2023.
  51. ^Josephs, Leslie (December 18, 2019)."Amazon picks low-cost airline Sun Country to expand its cargo business".CNBC. RetrievedDecember 19, 2019.
  52. ^"AeroTransport Data Bank".AeroTransport.org. RetrievedApril 3, 2015.

External links

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Wikimedia Commons has media related toSun Country Airlines.
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