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
U.K. prime minister calls national election for July 4
British Prime Minister Rishi Sunak called a national election on Wednesday, naming July 4 as the date for a vote his governing Conservatives are widely expected to lose to the opposition Labour Party after 14 years in power.
Woman found dead in Lake Ontario in 2017 matches identity of missing person in Switzerland
Genetic genealogy has helped Toronto police identify a woman who was found dead in Lake Ontario in 2017.
Fish oil supplements may raise risk of stroke, heart issues, study suggests
As an excellent source of heart-healthy omega-3 fatty acids, daily fish oil supplements are a popular way to keep the risk of cardiovascular disease at bay.
Private island on Nova Scotia's South Shore listed for $15.8M
A private island on Nova Scotia’s South Shore has been listed for sale with a $11.5-million USD price tag.
DEVELOPING Blood vial delivery prompts evacuation of Republican headquarters in Washington
The headquarters of the Republican National Committee in Washington, D.C., was briefly evacuated on Wednesday morning after a suspicious package containing two vials of blood was delivered to the building, the police said.
'Happy tears' of victim's sister after prison attack on serial killer Robert Pickton
Cynthia Cardinal said she was 'overwhelmed' with happiness when she received a text message on Monday with the news that serial killer Robert Pickton, who murdered her sister, was attacked in prison. She called it 'karma.'
Montreal photographer captures dramatic Canada goose vs. fox fight on video
A Montreal photographer captured the moment a Canada goose defended itself from a fox at the Botanical Garden.
'On the edge of failing': Most of Canada gets a 'D' on poverty report cards
Poverty and food insecurity have worsened in most of Canada in the past year and most provincial governments aren't doing enough to address the problem, according to a just-released series of report cards.
World's most expensive feather sells at New Zealand auction
A feather from a long-extinct New Zealand bird has set a record after selling for $46,521 NZD (about US$28,400), the auction house handling the sale has said.