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Sun Country Airlines

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Sun Country Airlines
IATA ICAO Call sign
SY SCX SUN COUNTRY
FoundedJuly 2, 1982; 42 years ago (1982-07-02)
incorporated in Minnesota
Commenced operationsJanuary 20, 1983; 41 years ago (1983-01-20)
AOC #SCNA220K[1]
Operating basesMinneapolis–Saint Paul International Airport
Frequent-flyer programSun Country Rewards
Fleet size57
Destinations172[2]
Parent companySun Country Airlines Holdings
Traded asNasdaq: SNCY
S&P 600 Component
HeadquartersMinneapolis, Minnesota, United States
Key people
RevenueIncrease US$894 million (2022)
Operating incomeDecrease US$56 million (2022)
Net incomeDecrease US$18 million (2022)
Employees2,500
Websitesuncountry.com

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.[3]

History

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One version of Sun Country's early logo.
A Sun Country McDonnell Douglas DC-10-10 at Miami International Airport in 1998.

Early years and bankruptcies (1983–2008)

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Sun Country was incorporated on 2 July 1982.[4] It received its certificate of public necessity and convenience from the Civil Aeronautics Board on January 17, 1983.[5] The company began offering charter service and the first revenue flight was on January 20, 1983 from Sioux Falls to Las Vegas, using a Boeing 727 aircraft leased from Air Florida.[6][7] 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.[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 the Minneapolis–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 by Petters Group Worldwide and Whitebox Advisors.[13]

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 that Petters Group Worldwide was operating a massive financial fraud, a $3.25 billion Ponzi 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 to San Francisco and Los 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 an FBI probe discovered that the airline had suffered financial fraud on a massive scale.[14][18] Following this, the airline filed for Chapter 11 bankruptcy protection for the second time, on October 6, 2008.[19]

Rebuilding and Davis brothers ownership (2011–2017)

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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.[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 of Allegiant 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)

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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.[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 for Amazon. Sun Country will initially operate ten cargo jets for Amazon 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 the NASDAQ 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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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):

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue ($m) 202 239 308 361 410 518 560 197 385 701 401 623 894
Net profit after tax ($m) 1 11 4 15 2 2 27 16 28 25.9 −0.4 46 −3.9 81.2 17.7
Number of employees (at year end) 1,312 1,889 1,549 1,532 1,699 2,181 2,510
Number of passengers (m) 1.6 1.9 1.8 2.5 2.6 3.6 1.7 2.7 3.6
Passenger load factor (%) 70 72.6 80.2 78.5 80.4 82.4 82.5 64.9 74.7 83.5
Number of aircraft (at year end) 19 26 30 31 43 48 54
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 the coronavirus pandemic

Services

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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's frequent-flyer program, was established in November 2018, and replaced an older program called Ufly.[41] In 2023, Sun Country was named the best low cost carrier in North America at the Paris Airshow's World Airline Rankings.[42]

Destinations

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Top domestic markets (November 2021 – October 2022)[43]
Rank Airport Passengers Market share (%)
1 Minneapolis/St. Paul, Minnesota 1,425,100 10.11%
2 Las Vegas, Nevada 172,180 0.73%
3 Fort Myers, Florida 154,740 2.98%
4 Orlando, Florida 143,120 0.66%
5 Phoenix, Arizona 138,130 0.64%
Other markets 999,460 0.13%
Main article: List of Sun Country Airlines destinations

As of January 2024, Sun Country Airlines flies to 81 destinations and operates more than 100 routes throughout the Caribbean, 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 the United States Armed Forces[46] and NCAA football teams.[47] The airline has provided charter service to Major 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

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

Fleet

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Current fleet

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Sun Country Boeing 737-800 wearing the newest livery
Sun Country Boeing 737-800BCF operated for Amazon Air, with Sun Country titles behind the cockpit windows

As of September 2024, Sun Country Airlines operates an all-Boeing 737 Next Generation fleet composed of the following aircraft:

Sun Country Airlines fleet[citation needed]
Aircraft In service On order Passengers Notes
F Y+ Y Total
Passenger fleet
Boeing 737-800 43 — – 30 156 186
1 — 76 – – 76 VIP charter configuration.
Boeing 737-900ER 1 4 TBA First aircraft to be delivered second-hand from Oman Air in 2024.[50]
Cargo fleet
Boeing 737-800BCF 12 8 Cargo Aircraft operated for Amazon Air.[51]
Total 57 12

Historical fleet

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Sun Country Airlines historical fleet[52]
Aircraft Total Introduced Retired Notes
Boeing 727-200 42 1983 2002
Boeing 737-700 9 2008 2023
McDonnell Douglas DC-10-10 6 1993 1998
McDonnell Douglas DC-10-15 4 1994 2001
McDonnell Douglas DC-10-30F 2 1995 1997 Leased from Gemini Air Cargo
McDonnell Douglas DC-10-40 1 1986 1991 Transferred to Northwest Airlines

See also

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References

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  1. ^ "Federal Aviation Administration – Airline Certificate Information – Detail View". av-info.faa.gov. Retrieved June 27, 2019.
  2. ^ "Sun Country Airlines on ch-aviation.com". ch-aviation.com. Retrieved November 21, 2023.
  3. ^ a b Cameron, Doug (December 17, 2019). "Amazon Looks to Sun Country to Boost Its Cargo Unit". Wall Street Journal. Retrieved December 19, 2019.
  4. ^ "opencorporates Minnesota incorporation record for Sun Country Airlines, Inc". opencorporates.com. opencorporeates. Retrieved July 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 from the original on March 5, 2016. Retrieved July 23, 2017.
  11. ^ "World Airline Directory." Flight International. March 26, 1988. 117.
  12. ^ "The Braniff/Sun Country Connection". The Braniff Family. Archived from the original on July 17, 2012. Retrieved February 10, 2013.
  13. ^ "Petters Group Worldwide and Whitebox Advisors Acquire Sun Country Airlines" (Press release). Sun Country Airlines. October 31, 2006. Archived from the original on November 14, 2006. Retrieved January 21, 2007.
  14. ^ a b Fedor, Liz (September 28, 2008). "Sept. 29: Sun Country workers face temporary 50% pay cut". Minneapolis Star-Tribune. Retrieved October 6, 2008.[dead link‍]
  15. ^ Hughes, Art (December 2, 2009). "Tom Petters found guilty of Ponzi scheme fraud". Reuters. Retrieved November 17, 2024.
  16. ^ Muehlhausen, Nicole (August 6, 2008). "Sun Country asks MAC to help keep company flying". KAAL. Archived from the original on October 22, 2014. Retrieved October 6, 2008.
  17. ^ "Sun Country trims flights, and fares push higher". September 8, 2008. Retrieved April 28, 2013.
  18. ^ Dunbar, Elizabeth (September 30, 2008). "Petters resigns amid fraud investigation". International Herald-Tribune. Associated Press. Retrieved October 6, 2008.
  19. ^ Fedor, Liz (October 6, 2008). "Sun Country Airlines files for bankruptcy". Minneapolis Star-Tribune. Retrieved October 6, 2008.
  20. ^ David Phelps (July 21, 2011). "Cambria deal gives new life to Sun Country". StarTribune. Retrieved April 28, 2013.
  21. ^ "Cambria Holdings paid $34 million for Sun Country Airlines". The Mankato Free Press. August 3, 2011. Archived from the original on January 28, 2013. Retrieved December 21, 2012.
  22. ^ a b c d e Painter, Kristen Leigh (July 6, 2017). "Sun Country Airlines CEO Ousted; owner Davis steps in as he seeks successor for Erani". Star Tribune. Retrieved July 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. Retrieved March 16, 2023.
  25. ^ "Funds Managed by Affiliates of Apollo Global Management to Acquire Sun Country Airlines". Apollo. Retrieved April 8, 2020.
  26. ^ Josephs, Leslie (December 18, 2019). "Amazon picks low-cost airline Sun Country to expand its cargo business". CNBC. Retrieved December 24, 2019.
  27. ^ "Sun Country Airlines starts cargo operations for Amazon". Air Cargo News. May 11, 2020. Retrieved May 15, 2020.
  28. ^ "The Amazon and Sun Country Partnership". AVIATION A2Z. May 24, 2021. Retrieved May 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. Retrieved May 16, 2021.
  30. ^ "Amazon transferring Boeing 737-800 cargo jets to Sun Country Airlines". Yahoo Finance. June 20, 2024. Retrieved June 23, 2024.
  31. ^ a b c d e f "After 15 years of turbulence, Sun Country finding clear air". MinnPost. October 31, 2014. Retrieved December 4, 2019.
  32. ^ "U.S. Domestic Airline Fuel Efficiency Ranking, 2017–2018" (PDF). International Council on Clean Transportation. September 2019. Retrieved December 12, 2019.
  33. ^ a b c "OST_R BTS Transtats". www.transtats.bts.gov. Retrieved February 7, 2018.
  34. ^ a b "Bureau of Transportation Statistics". Bureau of transportation. Retrieved December 4, 2019.
  35. ^ "Former Sun Country owner learned a lesson: 'Don't fly under the radar'". Star Tribune. September 15, 2018. Retrieved November 21, 2019.
  36. ^ "An IPO for Sun Country? The airline's owner explores options". Star Tribune. August 28, 2019. Retrieved December 8, 2019.
  37. ^ a b c d "United States Securities and Exchange Commission Form S-1 Preliminary Prospectus". Sun Country Airlines Holdings, Inc. 2021. Retrieved December 15, 2021.
  38. ^ a b "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. Retrieved February 26, 2019.
  41. ^ "Sun Country is Overhauling its Rewards Program: What You Need to Know". Thrifty Traveler. November 2, 2018. Retrieved November 2, 2018.
  42. ^ Tribune, Gita Sitaramiah Star (June 21, 2023). "Sun Country Airlines named best low-cost airline in North America". Star Tribune. Retrieved May 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. Retrieved June 13, 2010.
  47. ^ "Sun Country CEO: Future Growth Plans Travel Beyond Leisure flights". BizJournals.com. Retrieved March 20, 2019.
  48. ^ Sitaramiah, Gita (October 27, 2021). "Sun Country Airlines to be official carrier of Major League Soccer". Star-Tribune. Retrieved December 19, 2023.
  49. ^ "Airline Partners". SunCountry.com. Retrieved October 26, 2021.
  50. ^ "Sun Country Airlines to Acquire Five 737-900ERs". GlobalNewsWire (Press release). April 4, 2023. Retrieved April 4, 2023.
  51. ^ Josephs, Leslie (December 18, 2019). "Amazon picks low-cost airline Sun Country to expand its cargo business". CNBC. Retrieved December 19, 2019.
  52. ^ "AeroTransport Data Bank". AeroTransport.org. Retrieved April 3, 2015.
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