Allegiant Travel Company, owner of Allegiant Airlines, has completed the acquisition of Sun Country Airlines, valued at approximately $1.5 billion in cash and stock, following receipt of all relevant regulatory approvals and shareholder votes.

This transaction, which was announced in January, is in line with Allegiant’s strategy of strengthening its positioning in the U.S. leisure segment, by integrating a long-established carrier based in Minneapolis-St. Paul and active on domestic vacation routes and to certain international destinations. Following the transaction, Sun Country’s former shareholders will hold a significant minority stake in the new group, with Allegiant retaining capital and operational control.

The combined fleet totals 195 single-aisle aircraft (Boeing 737 NG/MAX and Airbus A320 families), operating to nearly 175 cities and more than 650 routes, mainly to leisure destinations with little or moderate coverage by the major networks. The group also has 30 aircraft on order, and a further 80 on option.

For the time being, Allegiant and Sun Country will continue to operate under their respective brands, airline certificates, websites and reservation systems, with no changes for passengers or existing frequent flyer programs.

Group management points to expected synergies of the order of $140 million a year over the next few years, from network optimization, better fleet utilization and economies of scale in purchasing and maintenance. He adds that Sun Country’s cargo business for Amazon Prime Air and its charter contracts with casinos, Major League Soccer, university sports teams and the Department of Defense complement Allegiant’s existing charter business and further diversify the combined company’s revenue base.

The group remains headquartered in Las Vegas.