Wednesday, September 18, 2024

WestJet merger with Sunwing Airlines raises travel cost concerns

First Published:

WestJet has announced it will be integrating Sunwing Airlines into its main business following its acquisition of the airline in a move that has drawn concerns over possible increases in travel costs.

The Canadian government approved the acquisition despite warnings from the Competition Bureau that the decision would lead to higher prices and decreased services for travellers.

John Gradek, a lecturer at McGill University’s aviation management program, doubled down on the Competition Bureau’s concerns saying the integration could mean fewer flights to major vacation spots in Mexico, the United States and the Caribbean.

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This decision comes just over one week after it was announced that Swoop would be merged into the flagship company as well.

Both integrations highlight the major consolidations within the Canadian airline markets following WestJet’s original acquisition of Sunwing’s main and vacation divisions last month.

Sunwing Vacations will remain as a separate brand providing vacation packages for travellers while the airline itself is merged into one with WestJet.

Swoop is expected to be fully merged by late October of this year, with the Sunwing integration to follow.

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