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Sun Country Airlines is a United States ultra-low-cost airline, and the eleventh largest in the United States by passengers carried. It is based at Minneapolis–Saint Paul International Airport and headquartered in nearby Eagan, Minnesota.[2] The airline operates 86 routes between destinations in the United States, Mexico, Central America and the Caribbean. The airline operates focus cities at Dallas/Fort Worth and Portland, Oregon.[3]

Rebuilt, owned by the Davis brothers (2011-2017) Edit

New seats on the Sun Country Boeing 737-800 in January 2019. Arranged in an all-economy layout.
In July 2011, Sun Country Airlines was purchased out of bankruptcy for $34 million by the Davis family, owners of Cambria, a Minnesota-based countertop company.[15][16] Marty Davis, CEO of Cambria, became Chairman of Sun Country Airlines.

In 2015, the board hired Zarir Erani as President and CEO of Sun Country.[17] The airline had a net income of $27 million in 2015, followed by a 41% drop to $16 million in 2016.[17]

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.[17] Jude Bricker, previously of Allegiant Air, was appointed as CEO one week after Erani stepped down.[18] As part of its strategy, Sun Country had begun to move towards being a "no frills" airline.[19]

Sale to Apollo Global Management (2017 to date) Edit
On December 14, 2017, the Davis brothers announced they would be selling the airline to New York Based Apollo Global Management for an undisclosed amount.[19]

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After Jude Bricker took over as CEO of Sun Country Airlines in mid-2017, he figured it would be an easy turnaround. He was leading a quixotic, perennially underperforming airline owned by two brothers — pillars of the Minneapolis/St. Paul community for their quartz countertop and dairy businesses — with no airline experience.

Bricker, who had spent more than a decade at Allegiant Air, would add more economy seats, cut first class, institute fees for carry-on bags, retire smaller, less cost-effective jets, change the loyalty program, switch from employees to contractors for ground operations and buy airplanes, rather than pay the astronomical lease rates previous management negotiated. He’d also expand beyond Minneapolis, sending aircraft on any routes he thought could make money.

Most of it was from from a classic playbook, successfully implemented by low-cost airlines worldwide, including Spirit Airlines, Frontier Airlines, and Ryanair. At first, customers may complain, but soon they understand the value proposition: An airline that lowers its costs can offer cheaper fares, and more of them.

Sun Country is also adding in-seat power and offering streaming entertainment, and it still offers free drinks.

“We need to differentiate the product,” Bricker said. “There’s a reason ULCCs have had a really slow growth profile here in Minnesota. Minnesotans ask for more, and we need to deliver.”

While the new Sun Country has had trouble winning trust locally, the airline is making more money. According to government data, Sun Country generated operating profit of $30 million in the year ending in September, an increase of 66 percent, year-over-year, even though costs rose by more than 7 percent.

Private equity firms generally don’t retain assets for long, and Bricker said he knows Apollo has an exit strategy. It may include an initial public offering, or a sale.

“They’re not going to be here in 10 years,” Bricker said. “Five years is kind of up in the air.”

NICHE CARRIER
Even as it grows, Sun Country likely will remain the most unusual large-jet-flying airline in the United States.

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