WestJet has announced the closure of Sunwing operations to integrate low-cost aircraft into its core business. The merger process will be completed by October next year.
The Toronto-based company’s core airline and vacation division was acquired by WestJet last May. This has led to a major concentration in the air transport market. WestJet said Sunwing’s 18 Boeing 737 aircraft and 2,000 employees will merge with the Calgary-based company.
WestJet and Sunwing hold 37 percent of the total seats on flights to Sun destinations. In addition, Western
They account for 72 percent of the total seats on Canada-bound flights. This is what the Competition Bureau said last month.
However, some experts have warned that as a result of this, the service quality may decrease as well as increase the rent. This situation is particularly likely to occur in destinations such as Western Canada and smaller cities.
In the Sunwing acquisition, both parties have pledged to retain capacity on the most affected routes. At the same time, Sunwing Vacations has also agreed to keep its headquarters in Toronto. The head office will remain there for at least five years. However, the regional office will be in Montreal.
This process of integration is ongoing. WestJet Soup is also preparing to be brought under their parent company in late October.