WestJet shutting down Sunwing Airlines, folding it into operations
The days are numbered for Sunwing Airlines after WestJet announced it completed its acquisition of the airline and Sunwing Vacations on May 1. Seven weeks later, Sunwing is being folded into its mainline operations.
The decision comes the week after WestJet opted to also fold budget subsidiary Swoop’s operations under its flagship banner.
Both moves magnify the major consolidation of the Canadian aviation market.
For travellers like Zahro Banga, who is returning to Waterloo from a seven-day Sunwing Vacations trip to the Dominican Republic, the move is concerning.
“I’m not really happy about it,” he said. “Especially after this trip. I really was planning on going back with Sunwing on more trips.”
WestJet assured travellers that Sunwing Vacations will continue to offer affordable packages and plans to expand offerings but didn't menthon any changes to Waterloo region's airport. The company stressed that it will be business-as-usual this summer for the airline.
“The integration of all jets from Sunwing Airlines, Swoop and WestJet into one fleet will provide us with the scale to enhance our collective operational resilience, while offering more affordable fares and vacation opportunities across our entire network,” reads a statement in part, issued by WestJet on Monday.
Following the announcement, experts within the airline industry are weighing in on the ripple effect the merge could cause.
“Will there be layoffs? I’m not sure. It all depends on my friends at WestJet [and] how they decide to do this,” said John Gradek, an airline industry watcher. “In the normal course of activity, when you have these type of consolidations, there are layoffs at the management level or technical level.”
Looking to the future, Gradek added that this decision will ultimately result in less consumer choice.
“This is a business. These guys are running for profitability,” he said. “There will be rationalization of services and guess what? Prices will go up and prices going up is going to be the big concern for Canadian consumers and that would be something the government may want to look at as well.”
TRAVEL INSURANCE EFFECTS
The announcement may be concerning for some travel insurance agencies but the president of Travel Secure Inc, Martin Firestone, said things are looking good for now.
“I’m seeing a tremendous lift and upswing in people booking reservations and travel and, of course, if you did book with Sunwing or Swoop for that matter, everything is going to be honoured… It’s really just a question of ‘will I be able to afford to travel anymore?’ and that’s where my world comes in. They need travel insurance if they’re booking trips but if they can’t afford these one-week vacation getaways, then that’s going to affect all of us and people won’t be travelling as much.”
As for why the company is merging, Firestone also had some ideas.
“I think it’s directly related and it’s repercussions to the recent salary increase that’s been offered to all WestJet pilots. Something had to give. I guess this, and the Swoop decision, are what happened as a result of not being able to come out with these low discount flights and pay those salaries that those pilots are now going to get.”
He added that, “Competition is a good thing and if we don’t have it, that’s going to cause a problem.”
- With files from the Canadian Press
CTVNews.ca Top Stories
India's foreign minister reacts to murder charges, claims Canada welcomes criminals
India's Foreign Affairs Minister accused Canada of welcoming criminals from his country in response to the RCMP's recent arrests in a homicide that has roiled tensions between the two countries.
15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
Actor Bernard Hill, of 'Titanic' and 'Lord of the Rings,' has died at 79
Actor Bernard Hill, who delivered a rousing cry before leading his people into battle in 'The Lord of the Rings: The Return of the King' and went down with the ship as the captain in 'Titanic,' has died.
'A tiny city:' Pro-Palestinian campus protesters organize for another week
Pro-Palestinian activists have set up tents at universities in Toronto, Ottawa, Vancouver and Montreal, following a wave of similar protests at campuses in the United States linked to the Israel-Hamas war.
Lawsuit against Meta asks if Facebook users have right to control their feeds using external tools
Do social media users have the right to control what they see — or don't see — on their feeds?
A Holocaust survivor will mark that history differently after the horrors of Oct. 7
This year's Holocaust Remembrance Day, which begins on Sunday evening in Israel, carries a heavier weight than usual for many Jews around the world.
Princess Anne lays wreath at Battle of Atlantic ceremony; honours late Queen
Princess Anne saluted Canadian veterans and current forces members and honoured her late mother during separate ceremonies Sunday in Victoria as she wrapped up a three-day British Columbia West Coast royal visit.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.