Get ready for higher airline prices in Canada.
Airline and travel industry experts say WestJet’s decision to wind down Sunwing Airlines over the next two years will mean more inflation for consumers.
“It’s going to mean higher prices and worse service,” Gabor Lukacs, president of Air Passenger Rights, a Halifax-based advocacy organization, told the Globe and Mail.
While WestJet’s decision to wind down Sunwing Airlines operations will almost certainly lead to higher prices, McGill University aviation expert John Gradek told that the Globe that that’s just one of several issues that Ottawa needs to address in the airline industry.
“The Canadian consumer is not being represented. And there is no Canadian consumer body that basically stands up and says: What about us?”
WestJet announced on May 1 that it’s offer to buy Sunwing Airlines and Sunwing Vacations was official. After reaching a deal with its pilots, WestJet announced earlier this month that low-cost Swoop Airlines would be merged into WestJet mainline operations. WestJet last week then stated it will be winding up Sunwing Airlines, likely in the next couple years. Sunwing Vacations will remain, however.
A Sunwing plane in flight.
COMPETITION BUREAU WARNED OF HIGHER PRICES
Canada’s Competition Bureau last year warned that consumers could pay if WestJet’s offer to buy Sunwing went through.
“Eliminating the rivalry between these integrated airlines and tour operators would likely result in increased prices, less choice and decreases in service for Canadians. It would also likely result in a significant reduction in travel by Canadians on a variety of routes where their existing travel networks overlap,” the report said.
The federal government approved the deal anyway, but said WestJet would have to maintain capacity on the most affected routes, increase regional connectivity and extend Sunwing packages to five new cities.
WestJet officials say the Sunwing merger will help provide affordable fares for Canadians.
“We are confident that the future integration of Sunwing Airlines into the WestJet Group, following that of our ultra-low-cost carrier Swoop will significantly enhance our ability to provide affordability and choice to our guests,” Alexis von Hoensbroech, WestJet Group, Chief Executive Officer, said in a statement. “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.”
Sunwing Vacations put out a statement today (June 20, 2023) saying that it’s business as usual for them, and that they will soon be announcing new routes to the sun for Canadian consumers.
