Allegiant CEO makes case for low-cost airline model as Sun Country acquisition closes

Allegiant Travel Co .'s acquisition of Sun Country Airlines closed on Wednesday, and the chief executive of the combined company, Greg Anderson, said Allegiant Air will continue to stand out despite industry turmoil, including a surge in jet fuel costs. "Our model was built to protect margins and not chase growth," Anderson said in an interview with CNBC. The Las Vegas-based airline announced its $1.5 billion cash and stock agreement, including debt, to buy Minneapolis-based Sun Country in January. The brands and booking portals will remain separate, for now. The combined carrier, which Allegiant said will serve about 175 cities with over 650 routes, will continue to be surgical about capacity growth, Anderson said. He said that strategy has insulated the airlines from some of the trouble that other low-cost airlines have faced. Allegiant's plan includes ramping up service during peak travel periods, like in the summer or over spring break, and then dialing that back on Tuesdays and Wednesdays in lower-demand weeks, selling more seats to customers at times when the airline could have more pricing power, Anderson said. "For example, we'll pull capacity back and really park a lot of fleet on a Tuesday in September," he said. Allegiant and Sun Country have focused on cost-conscious travelers, connecting smaller cities to vacation destinations. Sun Country also flies cargo for Amazon . …