DALLAS – After the recent announcement that WestJet (WS) would be closing down its ultra-low-cost subsidiary Swoop (WO), an internal memo seen by Reuters has revealed that it also plans to wind down Sunwing Airlines (WG).
The WestJet Group announced the completion of its acquisition of Sunwing Vacations and WG back in May. The merger initially faced scrutiny from Canadian regulatory authorities, raising concerns that the combined carriers would have potential anti-competitive effects that could harm consumers regarding sales and combined air and resort vacation packages.
It identified 16 routes that WS would end up holding a monopoly over. It was claimed this would lead to reduced travel options for travelers, increased prices, fewer choices and service cuts.
Integration of Sunwing
Since then, WS has been looking at how the integration of the two could move forward, and now it seems that retiring the Sunwing brand is the preferred choice. The wind-down will occur within two years as WS looks to streamline its operations.
In the memo sent by Len Corrado, President of WG, to all employees, he stated that all staff members would continue employment with WestJet once the takeover is complete.
However, the memo does not mention the shutdown of Sunwing Vacations. This means the package tour operator will likely continue operations, utilising WS aircraft to carry holidaymakers.
Featured Image: C-FFPH Sunwing Airlines Boeing 737-800. Photo: Adrian Nowakowski/Airways.
Article source: https://airwaysmag.com/westjet-to-wind-down-sunwing-airlines/
