WestJet announced on Friday its plan to gradually phase out Sunwing Airlines and incorporate the budget carrier into its mainline business by October of next year.
Following the acquisition of Sunwing’s main airline and vacation divisions in May, WestJet will seamlessly integrate Sunwing’s fleet of 18 Boeing 737s and its 2,000 employees into its operations.
Together, WestJet and Sunwing currently account for 37% of seat capacity on direct flights to sun destinations and 72% from Western Canada, according to the Competition Bureau.
However, experts have raised concerns about potential reductions in service and higher fares, particularly in Western Canada and smaller cities across the country.
As part of the acquisition agreement, both parties committed to maintaining capacity on the most affected routes and retaining Sunwing’s headquarters in Toronto and a regional office in Montreal for at least five years.
The integration process is already underway as WestJet prepares to bring its budget subsidiary, Swoop, under its flagship brand by the end of next month after reaching a new collective agreement that equalized pilot pay across both segments.