Sun Country Airlines - History - Expansion and Collapse

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 Minneapolis-St. 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). Many charters were flown in support of the Desert Storm effort in 1990-91. For their efforts in supporting the operation, 130 of the company's employees were recognized by the United States Air Force.

After reaping 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, DC, 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 events of 9/11 caused a precipitous drop in traffic and revenue. Contrary to its tradition of financial success and profitability, by the summer of 2001 the airline was bleeding money. After fighting to stay operational by cutting flights, destinations, and planes, the company finally closed its doors on December 8, 2001.