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WestJet to shut down Sunwing Airlines, merge it with mainline business

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WestJet is planning to wind down Sunwing Airlines, integrating the low-cost carrier into its mainline business within two years as part of a plan to streamline operations.

In an internal memo obtained by The Canadian Press, Sunwing Airlines president Len Corrado says the change will unlock growth opportunities for the 18-year-old company as well as its employees.

The decision comes barely a week after WestJet opted to fold budget subsidiary Swoop's operations under its flagship banner as well. Both moves magnify the major consolidation of the Canadian aviation market that followed WestJet's acquisition of Sunwing's main airline and vacation divisions last month.

The memo gave no indication that Sunwing Vacations would also shut down, suggesting that WestJet planes could be flying Sunwing tour package customers to their destinations. Last week, WestJet announced it would fold Swoop into its main business by late October as the country's second-biggest airline recalibrates amid a fiercely competitive market.

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