Allegiant, Gulf Shores International Airport’s only commercial airline, is one step closer to officially acquiring Sun Country Airlines.

With the U.S. Department of Transportation’s approval of the airline subsidiaries’ joint interim exemption application, both airlines will be able to continue operating as separate carriers under common ownership, Allegiant announced last week, until receiving a single operating certificate from the FAA.

Under the terms of the approval, following the closing of the proposed transaction, Allegiant and Sun Country will continue to operate independently, “preserving their unique business models, route networks and customer experiences while advancing toward a single operating certificate,” the company said in the release.

"This approval underscores the strength of our shared vision and the thoughtful approach both teams have taken throughout this process," said Gregory C. Anderson, CEO of Allegiant. "We remain focused on bringing these organizations together in a way that builds on their strengths, while positioning the combined company for long-term growth and resilience."

This milestone was the last remaining regulatory approval-related condition to the closing of the proposed merger. Shareholder meetings are scheduled for May 8. Following shareholder approval, the closing could be finalized as early as May 13.

Allegiant announced it was acquiring Sun Country in January in a merger that “will form the leading, leisure-focused U.S. airline that is expected to expand affordable, convenient service to more vacation destinations domestically and internationally,” the company said in a statement Monday, April 20.

After closing, the combined company will operate under the Allegiant name.

Upon closing, Allegiant’s board of directors will expand from eight to 11 members with the addition of Jude Bricker, Jennifer Vogel and Thomas Kennedy, all current Sun Country Board members.

Strategically, the combination brings together complementary route networks – Allegiant's focus on small and mid-sized markets and Sun Country's presence in larger cities – creating more than 650 routes (551 Allegiant routes and 105 Sun Country routes) and connecting Minneapolis–St. Paul to additional mid-sized markets while expanding nonstop access to popular leisure destinations. The combined airline also adds broader international reach by leveraging Sun Country's service across Mexico, Central America, Canada and the Caribbean, providing Allegiant customers access to 18 international destinations.

The combined company will be headquartered in Las Vegas while maintaining a significant presence in Minneapolis–St. Paul.

Currently, the Gulf Shores airport (GUF), which opened for commercial travel in May 2025, offers twice-weekly, nonstop routes in eight cities: Appleton, Wisconsin (ATW); Des Moines, Iowa (DSM); Knoxville, Tennessee (TYS); Nashville, Tennessee (BNA); Kansas City, Missouri (MCI); Belleville/St. Louis, Illinois (BLV); Cincinnati, Ohio (CVG); and Northwest Arkansas/Bentonville, Arkansas (XNA). Beginning next month, five more routes will launch, offering summertime service in Springfield, Missouri (SGF); Louisville, Kentucky (SDF); Omaha, Nebraska (OMA); Oklahoma City, Oklahoma (OKC); and Huntsville (HSV).

The expansion comes as officials anticipate increased passenger traffic during peak tourism season along the Alabama Gulf Coast. Airport Director Jesse Fosnaugh said during a city council meeting on April 20 the airport is implementing additional operational measures to handle the expected demand.

“We’re going to be busy,” he said. “We put a lot of operational measures in at the airport, some kind of music and food to be out there. There’s more to come on that, but really just getting lined up for the summer, and we’re excited.”

The airport is planning a $15 million terminal expansion to include new gate areas, expanded baggage claim and increased curb frontage for vehicle access, GCM previously reported. Groundbreaking was tentatively planned at the time for this summer, with completion targeted for May 2027.

There is expected to be no immediate change to ticketing or schedules ahead of the merger, and customers can continue to book their flights through allegiant.com and suncountry.com.

GCM's Gabriella Chavez, a Report for America corps member covering growth and development in Baldwin County, contributed reporting.