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Sun Country History
Origins
Sun Country's original staff consisted of sixteen pilots, sixteen flight attendants, three mechanics, and one office person. The company's first president was Captain Jim Olsen, who also acted as Chief Pilot. His wife, Joan Smith-Olsen, acted as Chief Flight Attendant and Head of Inflight Operations. Jim Olsen retired from Sun Country in 2007.
Expansion and collapse
Slow and deliberate expansion through the 1980s created steady profits for the company. In 1986 the company put into service its first wide-body aircraft, a 380-seat DC-10-40 leased from future competitor Northwest Airlines. The aircraft's intercontinental range enabled the company to fly international charters and also accommodate high demand on the company's popular Minneapolis to Las Vegas route that the Boeing 727 fleet could not handle.
In 1988 its headquarters were located on the grounds of the Minneapolis–Saint Paul International Airport.
Sun Country also provided ad-hoc charter lift to civic organizations, corporations, sports teams, and virtually any other group that wanted to charter an aircraft. In 1989 Sun Country became a member of the Civil Reserve Air Fleet (CRAF), and flew many charters to support the Desert Storm operation from 1990 to 1991. For their efforts in supporting the operation, 130 of the company's employees were recognized by the United States Air Force.
After earning record profits of $9.7 million for the fiscal year ending June 30, 1991, the airline acquired additional Boeing 727 and DC-10 aircraft. Additional tour operators chose Sun Country as their air carrier, and an emphasis was placed on flying from the Midwest to Las Vegas, Florida, Mexico, and the Caribbean.
In the mid 1990s, Mark Travel Group, led by Bill LaMacchia, Jr., acquired Sun Country and began changing the focus of the small niche-market airline. Much of the 1990s were a tough period for the airline, as an aging and over-worked fleet coupled with record demand stretched the airline to its limits. New management began an aircraft refurbishing program designed at improving the experience of Sun Country's passengers. As the DC-10 aircraft aged and required expensive maintenance, the airline gradually reduced the fleet, ultimately retiring the final DC-10 in early 2001. As major airlines became more sophisticated in managing their seat inventories, the demand for tour charter flying fell off. In June 1999 the management of Sun Country launched a major transformation from a charter carrier into a scheduled airline. New service from Minneapolis and Milwaukee was announced to destinations around the nation, including Los Angeles, Seattle, Detroit, Washington, D.C., and Phoenix. The airline also announced a frequent flyer program, Smile Awards, which offered frequent travelers free flights, among other benefits. In 2000 Sun Country announced plans to replace its entire fleet with new Boeing 737 next-generation aircraft, with deliveries beginning in 2001. As Sun Country reinvented itself, heavy competition from local incumbent carrier Northwest Airlines and the September 11 attacks caused a sharp decrease of traffic and revenue. Contrary to its tradition of financial success and profitability, the airline was losing large amounts of money by the summer of 2001. After fighting to stay operational by cutting flights, destinations, and planes, the company closed on December 8, 2001.
Rebuilding and survival
During bankruptcy, Sun Country lost almost all of its 727 fleet and four recently delivered 737 aircraft: 737-8Q8 N800SY, N802SY, N803SY and a 737-7Q8, N710SY. Sun Country retained N801SY as well as its operating certificate. In the following months, a local group of investors organized as MN Airlines, LLC purchased the remaining assets in bankruptcy court and restarted the airline.
Emerging from bankruptcy, Sun Country standardized its fleet on the next-generation Boeing 737 narrow body. The airline initially operated combined charter-scheduled services from Minneapolis to casinos in Laughlin, Nevada and gradually added more charter destinations as finances allowed. Soon, new scheduled service was announced, focusing on Florida, Mexico, and the West Coast.
In a symbolic return to success, Sun Country acquired new aircraft in 2004 and 2005 and was profitable in 2004. To honor the company's roots and history, in 2004 Sun Country named new 737-800 N807SY "The Spirit of Braniff". This plane was the focus of the 2005 "Mid-Continent/Braniff Airways" reunion held on September 24, 2005, in the Sun Country Hangar at MSP. 350 former Braniff and Mid-Continent employees attended.
Sun Country was among the first airlines to operate out of the new terminal D at Dallas/Fort Worth International Airport, which officially opened on July 23, 2005.
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Tom Petters
On October 31, 2006, the airline announced that its acquisition by Petters Group Worldwide and Whitebox Advisors, previously announced in July, had been completed.
On March 5, 2008, Sun Country announced that Stan Gadek, former CFO of AirTran Airways, would become the airline's new CEO/president, replacing Jay Salmen who was acting as the interim CEO/president.
On April 1, 2008, Sun Country announced that it was placing 45 of its 156 pilots on furlough and was going to fly a lighter-than-normal summer schedule. The company blamed the decision on rising fuel costs.
On April 16, 2008, the carrier, which is owned by Mendota Heights-based Petters Group Worldwide, cut 28 full-time and 97 part-time jobs, according to a report in the Minneapolis Star Tribune. The full-time jobs included major executives, while the part-time jobs consisted of mostly station personnel.
On August 13, 2008, the airline indicated it had hoped to get up to $50 million in loans or other financial help from the state of Minnesota and the airports commission.
In September 2008 the carrier announced reductions or eliminations of flights to San Francisco and Los Angeles. It also began charging $12 for the first checked bag, following most major U.S. carriers.
At the end of September 2008, Gadek called for a 50% pay-deferral to all remaining employees. Also on the 28th, Tom Petters resigned after an FBI probe discovered financial fraud on a massive scale.
Tom Petters after arrest
Following this, the airline filed for Chapter 11 bankruptcy protection on October 6, 2008, in order to separate itself from the other Petters companies that were being taken over by a court appointee.
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On Christmas Eve, full pay was restored to all employees. Employees were also promised back-pay with interest.
The Company has emerged profitable in 2009 with an almost $1 million net profit announced in January.
In March, the company had fully repaid a $5 million loan from Elite Landings, a seller of corporate jets made by Airbus. The airline also announced new service to Branson, Missouri. and Boston. And in April, it announced a 1st Quarter Profit of $8 million.
Sun Country announced on June 30, 2010, that the airline will offer flights to five destinations from Capital Region International Airport in Lansing, Michigan. In December 2010 the airline was awarded landing slots to begin flights in April 2011 from Lansing to Washington-Reagan National Airport (DCA) and Minneapolis-St. Paul (MSP).
In 2011, Sun Country Airlines was acquired by Cambria, a Minnesota-based countertop company.
On December 14, 2017, The Davis Brothers announced they would be selling the airline to New York Based Apollo Global Management for an undisclosed amount. The airline will still be headquartered in Eagan, Minnesota and led by CEO Jude Bricker. This move is in hopes that Apollo's finances will allow the airline to "grow as it pleases". As part of its strategy Sun Country moved towards being a "no frills" airline. This includes lower base fares, higher baggage fees, seat selection fees, cabin reconfiguration and streamlining of their workforce and in-flight offerings.
