Sunwing Airlines is being shut down by the WestJet Group, shortly after announcing plans to do the same with its low-cost brand, Swoop. Experts are concerned that this consolidation will lead to higher fares and less competition in the Canadian aviation industry. The blame is being placed on the federal government for approving WestJet’s acquisition of Sunwing, which is now resulting in the wind-down of the Sunwing brand. As a result of the consolidation, there will be fewer flight options and potential price increases for travelers. However, there are some benefits to the consolidation, such as improved operational efficiency and better customer service. The Competition Bureau warned that this type of consolidation would likely result in higher prices for consumers. Despite approval from the government, some argue that the deal will leave Canadians with fewer choices and more expensive airfares. It remains to be seen if there is room for multiple low-cost carriers in the Canadian aviation industry, but some experts believe that differentiation and quality service will be key for smaller airlines to survive and thrive.
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