WestJet finalizing acquisition of Sunwing following federal government approval

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WestJet CEO Alexis von Hoensbroech said the deal is weeks away from completion after receiving approval from the federal government in March

The deal will be a boost to WestJet’s sun destination operations. Sunwing owns 45 hotels in tourism destinations throughout Mexico and the Caribbean but relies mainly on leasing planes. WestJet, meanwhile, did not previously operate its own hotels but provided flights to destinations.Article content

WestJet has since realigned its strategic operations to focus on Western Canada and its vacation flights. To accommodate this, the company has paused future purchases of 787 Dreamliners, while ordering 42 more 737 Max jets with an option to purchase another 22 to service its growing network, and allow it to attempt to lower prices with one of the most fuel-efficient planes on the market. Its current purchase order with Boeing is for 65 737s.

It is now back up to about 12,000 employees with plans to hire another 2,000 this year. The airline is also on pace to surpass pre-pandemic revenue levels and passenger capacity is at about 90 per cent of 2019 levels. There are not expected to be any job losses or restructuring as a result of the acquisition. Von Hoensbroech said the synergies between the two companies will help them better serve customers flying to warmer climes.

“This will allow us collectively to grow our offering for our guests more than each individual company would have been able to do,” he said. “This is how we see major benefit from this transaction actually coming to Canadians.”

 

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