WestJet to acquire Sunwing LCC airlines group

In a surprising announcement today WestJet airlines announced it would be acquiring the Sunwing group.

This is presumably so the airline can get a capacity boost and more routes for the expected bustling summer season, which is expected to approach pre-pandemic levels.

WestJet will be acquiring Sunwing airlines and its vacations subsidiary as part of the deal, the current owners will receive shares in WestJet once the acquisition is complete. The move to acquire Sunwing will cement WestJet’s position as a rivaling force to Air Canada’s dominance especially during the summer season.

It is a smart move by WestJet since both of the airlines’ fleets are compatible, they both operate Boeing 737s, currently WestJet operates 96 of them while Sunwing operates 28, this a 25% fleet jump for WestJet.

The airline said in a statement that this will not raise fare prices, this is possible by Sunwing no longer having to lease foreign aircraft for peak travel periods and instead use a joint fleet year-round. This move will also create new Canadian jobs at the growing carrier, they heavily emphasized that they will not be laying off any of their workforce.

The airline will also form a new tour group, it will be incorporated by both Sunwing and WestJet vacations. The Toronto based company will be selling packages from both brands for now, given Sunwing’s successful vacation packages business bringing in billions this will be a big step-forward for WestJet.