On Friday, WestJet announced its intention to gradually absorb Sunwing Airlines into its primary operations by October of the following year. WestJet had acquired Sunwing’s main airline and vacation divisions in May, consolidating a significant portion of the aviation market. This move will involve the seamless incorporation of Sunwing’s 18 Boeing 737s and its workforce of 2,000 employees into WestJet, based in Calgary.
Together, WestJet and Sunwing currently represent 37% of the seat capacity for direct flights to sunny destinations and a commanding 72% from Western Canada, as reported by the Competition Bureau last autumn. Some industry experts have raised concerns that this integration might result in reduced service levels and higher fares, particularly in Western Canada and smaller cities nationwide.
As part of the agreement with the Canadian government regarding the Sunwing acquisition, both WestJet and Sunwing committed to maintaining capacity on the routes most affected by the consolidation. Additionally, they pledged to keep Sunwing Vacations’ headquarters in Toronto and a regional office in Montreal operational for a minimum of five years.
The integration process is already underway as WestJet prepares to merge its budget subsidiary, Swoop, into its main brand by the end of the upcoming month. This development follows the negotiation of a new collective agreement that aligns the pay levels for pilots across both segments.
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