DALLAS — Minnesota-based Sun Country Airlines (SY) has entered a deal to acquire five Boeing 737-900ERs.
According to the agreement, SY will acquire the five narrow-body Boeing 737s, which will continue to be leased to Oman Air (WY) until the end of the contracts. The first aircraft will be delivered to SY in late 2024, while the remaining four will arrive throughout 2025. MUFG Union Bank will provide the financing for the acquisition through a credit facility.
Benefits for Airlines
According to an official statement released by the airline, there are several advantages to purchasing the five 737-900ERs under their existing leases. Firstly, it demonstrates SY’s ability to acquire aircraft “opportunistically” in challenging market conditions ‘while providing fleet growth certainty through 2025.’
Moreover, having five aircraft of the same type ensures sufficient scale and efficiency in Sun Country’s existing fleet of 737-800s. The 737-900ER has greater seat capacity and a longer range than its smaller sibling. Additionally, by purchasing the aircraft today, SY will receive lease revenue through 2025.
Lastly, this transaction helps Sun Country minimize the transition time for modifying the aircraft and putting them into revenue service, which has been challenging due to supply chain constraints and engineering support.
Speaking of the acquisition, Jude Bricker, CEO of Sun Country, said, “The 737-900ER will be a great addition to our fleet.”
“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.”
SY is a unique Ultra-low-cost (ULCC) airline known for its hybrid business model that aims to connect passengers to their desired destinations and people, creating meaningful experiences and memories.
The airline leverages shared resources across its scheduled service, charter, and cargo businesses to maximise efficiency. It offers flights to various cities across the US, Canada, Mexico, Central America, and the Caribbean.
Feature Image: N820SY, Sun Country Airlines Boeing 737-800. Photo: Michael Rodeback/Airways