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WestJet to Integrate Sunwing Airlines into Mainline Business
WestJet, Canada’s second-largest airline, is planning to integrate Sunwing Airlines into its mainline business within the next two years. The move comes as part of a plan to streamline operations and open up new markets for the 18-year-old low-cost carrier. Sunwing Airlines President Len Corrado confirmed the decision in an internal memo, stating that the integration could take up to a couple of years. The decision follows WestJet’s recent announcement that it will fold budget subsidiary Swoop’s operations under its flagship banner.
The consolidation of the Canadian aviation market has been magnified by these moves, which followed WestJet’s acquisition of Sunwing’s main airline and vacation divisions last month. However, 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 sun-soaked getaways.
WestJet CEO Alexis von Hoensbroech mulled keeping Swoop separate, but concluded higher wages for its flight crews made the option less feasible. In March, the federal government approved WestJet’s takeover of Sunwing Vacations and Sunwing Airlines, despite a warning from the Competition Bureau that the purchase would likely result in higher prices and decreased services, especially around package deals.
WestJet’s Immediate Focus
While WestJet has confirmed the eventual integration of Sunwing Airlines into its operations, the anticipated timeline to do so has not been determined at this time. The airline’s immediate focus remains on the integration of Swoop’s highly successful business model across WestJet’s operations. The move to a one jet aircraft operating certificate (AOC) model is expected to strengthen WestJet’s strategy of growing sun flying in the East alongside expansion plans in Western Canada.
Sunwing Vacations will continue to operate as part of the WestJet Group and will not be impacted by the airline integration. The federal government approved WestJet’s takeover of Sunwing Vacations and Sunwing Airlines, subject to conditions that include extending Sunwing packages to five new cities, maintaining capacity on the most affected routes, and keeping both a vacations business head office in Toronto and a regional one in Montreal for at least five years.
WestJet’s Fleet
The acquisition of Sunwing’s main airline and vacation divisions added some 2,000 employees and 18 Boeing 737s to WestJet’s 130-aircraft fleet, made up entirely of Boeing planes, according to the federal aircraft registry. This includes Swoop’s planes but not those of regional service WestJet Encore.
Conclusion
WestJet’s decision to integrate Sunwing Airlines into its mainline business within the next two years is part of a plan to streamline operations and open up new markets for the low-cost carrier. The move follows WestJet’s recent announcement that it will fold budget subsidiary Swoop’s operations under its flagship banner. While the anticipated timeline for the integration has not been determined, WestJet’s immediate focus remains on the integration of Swoop’s highly successful business model across its operations. Sunwing Vacations will continue to operate as part of the WestJet Group and will not be impacted by the airline integration.
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