Westjet decision to shut down Sunwing will result in higher prices for consumers, industry experts say

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Move to wind down Sunwing operations is likely being driven by what Onex Corp. sees as an opportunity for cost reductions

will mean less competition that will result in higher prices for consumers, airline industry experts and passenger rights advocates say.

In a statement sent to The Globe and Mail on Sunday, WestJet public relations co-ordinator Julia Kaiser confirmed that Sunwing Airlines will eventually be integrated into WestJet, although “the anticipated timeline to do so has not been determined at this time. Our immediate focus remains on the integration of Swoop’s highly successful business model across WestJet’s operations.”

In an internal memo obtained by The Canadian Press, Sunwing Airlines president Len Corrado said the integration will likely take two years. Ottawa set a number of terms and conditions in approving the acquisition, including maintaining capacity on the most affected routes, increasing regional connectivity, extending Sunwing packages to five new cities, and keeping both a vacations business head office in Toronto and a regional one in Montreal for at least five years.

Transport Canada said in a statement that the decision to approve the acquisition “incorporated the findings of the Commissioner of Competition, and consultations with Canadians, consumer protection groups, unions and industry.”

 

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