WestJet's Purchase Of Sunwing Now Approved By The Feds & Here's What It Means For Flight Prices

WestJet has officially been given the green light from the federal government to buy Sunwing and the merger is expected to have an impact on flight prices.

It was announced on March 10, 2023, that the government of Canada had approved the Calgary-based airline's acquisition of Sunwing following an assessment by Transport Canada.

That assessment incorporated findings from the Commissioner of Competition and consultations with Canadians, consumer protection groups, unions and others "to ensure a safe and competitive air sector for travellers."

Minister of Transport Omar Alghabra said that the decision was taken seriously, especially because of what happened over the holidays with Sunwing including flight delays, cancellations and baggage issues.

So, Sunwing will be able to "continue to provide affordable vacation packages to Canadians" while being supported financially by WestJet, he said.

The federal government is attaching terms and conditions to WestJet's purchase of Sunwing which include:

• Expanding Sunwing vacation packages to five new Canadian cities;
• Maintaining capacity on routes affected by the merger;
• Increasing regional connectivity;
• Improving baggage handling;
• Maintaining a head office in the Toronto area and a regional office in the Montreal area for at least five years;
• Increasing employment by 20% over three years;
• Investing in IT technology solutions;
• Supplying airfare data on vacation packages to monitor price trends; and
• Gradually ending Sunwing's seasonal leasing practice.

When the merger was first announced on March 2, 2022, WestJet said that it would allow the airline to "deliver new travel options and greater value for travellers," create jobs and rebuild Canada's travel industry.

It's expected that the acquisition of Sunwing will mean "more competitive airfares" for Canadian travellers along with affordable vacation packages!

The airline said a new tour operating business will be created to include Sunwing Vacations and WestJet Vacations.

Also, WestJet's purchase of Sunwing will allow it to expand its low-cost footprint in Canada and offer "more affordable fares."

Not only could flight prices get cheaper after the buyout but there could also be increased capacity because seasonal aircraft will be used all year long.

WestJet hasn't yet revealed when the takeover of Sunwing will happen.

This article's cover image was used for illustrative purposes only.