WestJet announced on Friday its plans to wind down Sunwing Airlines and merge the low-cost carrier into its mainline business by October of next year. The Calgary-based carrier, which acquired Sunwing’s main airline and vacation divisions in May, aims to seamlessly integrate Sunwing’s 18 Boeing 737s and 2,000 employees. WestJet and Sunwing currently represent 37 percent of seat capacity on direct flights to sun destinations and 72 percent from Western Canada, according to a report from the Competition Bureau.
There are concerns that this consolidation may result in reduced service and higher fares, especially in Western Canada and smaller cities across the country. However, as a condition for approval of the Sunwing acquisition by Ottawa, WestJet and Sunwing committed to maintaining capacity on heavily affected routes and retaining the Sunwing Vacations head office in Toronto and a regional office in Montreal for at least five years.
In addition to integrating Sunwing, WestJet is also in the process of bringing its budget subsidiary, Swoop, under its flagship brand by the end of next month. This move follows the agreement reached between WestJet and Swoop pilots, which ensures a level field of pay for both segments.