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
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels will take the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
NEW From yearning for a change to cost of living, why some Canadians have left or may leave the country
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
NEW Capital gains tax change 'shortsighted' and 'sows division' business groups tell Freeland
Forging ahead with increasing Canada's capital gains inclusion rate 'sows division,' and is a 'shortsighted' way to improve the deficit, business groups are warning Finance Minister Chrystia Freeland.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
Defence attacks Stormy Daniels' credibility as she returns to the stand in Trump's hush money trial
Stormy Daniels will return to the witness stand Thursday in Donald Trump's hush money trial as the defence tries to undermine the credibility of the porn actor's salacious testimony about their alleged sexual encounter and the money she was paid to keep quiet.
With contactless screening tech, this Toronto startup hopes to catch breast cancer early — and save lives
Amid evidence of rising breast cancer rates among young women in Canada, one Toronto startup is offering a contactless and radiation-free device that can help doctors identify suspicious changes in breast tissue. The company, Linda Lifetech, says this can lead to earlier detection of breast cancer.
Tornadoes tear through southeastern U.S. as storms leave 3 dead
Forecasters warned a wave of dangerous storms in the U.S. could wash over parts of the South early Thursday, a day after severe weather with damaging tornadoes and large hail killed at least three people in the region.
Police handcuff man trying to enter Drake's Toronto mansion
Toronto police say a man was taken into custody outside Drake's Bridle Path mansion Wednesday afternoon after he tried to gain access to the residence.