A New Day in Canadian Travel: WestJet Completes Acquisition of Sunwing Vacations and Sunwing Airlines

“In addition, it positions Sunwing to continue its growth across Canada and permits the newly merged company to protect jobs.”

Initially, the airlines will continue independent operations, maintaining a sharp focus on providing an exceptional guest experience and ensuring safe operations. As the two entities transition from competitors to collaborators, the combination of these businesses will be planned in a way that positions Sunwing as an instrumental pillar of the WestJet Group, and prioritizes the experience of a growing number of guests.  

The Trudeau government approved the merger in March of this year, but with conditions.

“Given the current air sector landscape, it was important to ensure that the final agreement offered the best possible outcome for Canadians,” Ottawa officials said at the time. “The acquisition will help maintain the stability of the sector as Sunwing will continue to provide more affordable vacation packages to Canadians, while being financially supported by WestJet.

Transport Canada said the acquisition will also result in enforceable terms and conditions intended to protect the interests of travellers. These strict terms and conditions include:

• Extending Sunwing vacation package offerings to five new Canadian cities;
• Maintaining capacity on routes most affected by the merger;
• Increasing regional connectivity;
• Improving baggage handling for better passenger experience;
• Maintaining a vacations business head office in the Toronto area and a regional office in the Montreal area for a minimum of five years;
• Increasing net employment by 20 per cent over three years in the Toronto office;
• Ensuring better passenger experience by investing in IT technology solutions to improve Sunwing’s communications;
• Supplying airfare data on vacation packages for monitoring of post-acquisition price trends; and
• Gradually ending Sunwing’s seasonal leasing practice to protect Canadian jobs.

The deal definitely changes the Canadian aviation and travel sector.

“As we have set out on our new strategic trajectory for the WestJet Group, investing further in leisure and sun flying across Canada is a critical driver for growth,” said Alexis von Hoensbroech, Chief Executive Officer of the WestJet Group. “It brings me great pleasure to welcome Sunwing to the group, adding 18 Boeing 737s, 2,000 employees and Canada’s largest vacation tour operator and significantly expanding our footprint in Eastern Canada.

“Together, we will strategically enhance our sun and leisure offerings to bring even more affordable and accessible travel opportunities to Canadians,” he said.

Stephen Hunter, formerly the CEO of Sunwing Vacations, has been appointed CEO of the WestJet Group’s Vacations Business, responsible for all tour operating and vacation package businesses of both the Sunwing Vacations and WestJet Vacations brands.

“The combination of our complementary businesses marks an important milestone that will enable us to fast-track our growth plans and provide Canadians with more affordable vacations to more destinations than ever before,” said Stephen Hunter, CEO of the WestJet Group’s Vacations Business. “I am thrilled to join forces with WestJet and, in doing so, create even more opportunities for our people and deliver greater value for Canadian travellers.”

Sunwing.

As previously announced, the WestJet Group’s newly combined tour operator businesses, comprised of WestJet Vacations and Sunwing Vacations, will be headquartered in Toronto, Ontario and will continue to operate a Montreal office. In the coming years, the Vacations Business expects to facilitate new flying and new employment opportunities by retaining Sunwing’s aircraft in Canada year-round, among other sources of anticipated growth.

“We are excited to welcome Sunwing’s employees to the WestJet Group of Companies; throughout the planning of this transaction, we have been continually impressed by their expertise and experience in the vacations industry,” concluded von Hoensbroech.” We look forward to working alongside them to deliver memorable services to an expanding number of Canadians.”