Sun Country Airlines to Acquire Five 737-900ERs
Aircraft will remain on lease to Oman Air before delivery to Sun Country in 2024-2025
MINNEAPOLIS, April 04, 2023 (GLOBE NEWSWIRE) -- Sun Country Airlines (NASDAQ: SNCY) will acquire five 737-900ERs that will expand its passenger fleet in late 2024 and 2025. Under terms of the deal, Sun Country will acquire current leases for the five aircraft which will remain on lease to Oman Air until the leases begin to expire in late 2024 and through 2025. Sun Country will take delivery of one aircraft in late 2024 and the other four throughout 2025.
Purchasing the aircraft under their existing leases is advantageous to Sun Country for several reasons:
- This transaction demonstrates Sun Country’s ability to opportunistically acquire aircraft in a tight market at favorable economic terms while providing fleet growth certainty through 2025.
- Acquiring five aircraft of the same variant guarantees sufficient scale to be efficient in Sun Country’s existing fleet of 737-800s.
- The 737-900ER has more seat capacity than 737-800s and can fly a longer range.
- Sun Country will deploy capital to acquire the aircraft today while receiving lease revenue though 2025.
- Finally, used aircraft induction lead times have been challenged by supply chain constraints and engineering support. This transaction allows Sun Country to minimize the transition time of modifying the aircraft and induction into revenue service.
“The 737-900ER will be a great addition to our fleet,” said Jude Bricker, CEO of Sun Country. “Relative to our 737-800 aircraft, it will increase the number of seats without a reduction in range or take-off performance. This transaction demonstrates our ability to find creative ways to source the right aircraft in any market environment.”
The acquisition will be financed through a credit facility with MUFG Union Bank.
ABOUT SUN COUNTRY AIRLINES
Sun Country Airlines is a new breed of hybrid low-cost air carrier, whose mission is to connect guests to their favorite people and places, to create lifelong memories and transformative experiences. Sun Country dynamically deploys shared resources across our synergistic scheduled service, charter, and cargo businesses. Based in Minnesota, we focus on serving leisure and visiting friends and relatives (“VFR”) passengers and charter customers and providing CMI service to Amazon, with flights throughout the United States and to destinations in Mexico, Central America, Canada, and the Caribbean.
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