WestJet’s acquisition of Sunwing has received a positive, albeit non-binding determination from the Canadian Transportation Agency. A public interest assessment will continue, with the final decision to be made by the Cabinet on the Minister of Transport’s recommendation.
On Wednesday (October 26, 2022), WestJet Group announced that their proposed acquisition of Sunwing Vacations and Sunwing Airlines has received a positive determination after review by the Canadian Transportation Agency. Although the bureau’s report is advisory and non-binding, it will help support the Minister of Transport’s public interest assessment. The final decision will be made by the Cabinet on the Minister’s recommendation, and will also consider other factors such as the preservation on Sunwing’s brand, as well as a commitment to maintain Sunwing’s Toronto and Montreal offices. Other factors include the possibility of new flying that will be created by keeping Sunwing’s aircraft in Canada year-round and the resulting employment opportunities.
In Wednesday’s announcement, WestJet Group’s EVP and Chief People, Corporate and Sustainability Officer, Angela Avery, said,
“We thank the Competition Bureau and welcome their report. We look forward to bringing this transaction to life for the benefit of Canadian travellers, communities and employees.”
If the acquisition deal clears the regulatory hurdles, once the transaction closes, the Group will form a new tour operating business unit encompassing both Sunwing Vacations and WestJet Vacations, which will be run by Sunwing CEO Stephen Hunter. Sunwing’s shareholders will become equity holders in WestJet Group. The new tour operator unit will be headquartered in Toronto, with a Quebec head office in Laval, and the business will continue to market the Sunwing brand alongside WestJet Vacations, while WestJet will maintain their head office in Calgary. The transaction is expected to close in late 2022, subject to regulatory approvals.
In 26 years of service, WestJet has cut airfares for Canadians in half and increased the flying population around Canada by over 50 percent. The airline launched in 1996 with three aircraft, 250 employees and five destinations, and has now grown to more than 180 aircraft and 14,000 employees, offering service to 100 destinations in 23 countries (pre-pandemic). Even during the pandemic, WestJet maintained their rating by Cirium as one of the top ten airlines for on-time performance in North America.
Source: WestJet/CNW
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