Andrew Vaughan The Canadian Press The deal, announced last March, will allow Calgary-based WestJet to solidify its footprint in the market for sun destinations and resorts.
The federal government on Friday approved the takeover of Sunwing Vacations and Sunwing Airlines by the WestJet Airlines Group.
Transport Minister Omar Alghabra said his decision “was not taken lightly” especially given the delays and bottlenecks travelers experienced last summer, as well as Sunwing's difficulties with customer service and communications during the holiday season.
The agreement, announced last March, will allow Calgary-based WestJet to strengthen its footprint in the market for sun destinations and resorts. It provides for the creation of a new travel business unit, based in Toronto, which will include Sunwing Vacations and WestJet Vacations. Both brands will be retained.
Last fall, the Competition Bureau warned that a purchase by Canada's second-largest airline would likely lead to higher prices and less service, particularly with regard to packages.
The Minister of Transport has made the transaction conditional on the application of conditions aimed at protecting the interests of the traveling public. These include expanding Sunwing vacation package offerings to five additional Canadian cities, maintaining capacity on the routes most impacted by the merger, and maintaining the corporate headquarters for at least five years. leisure vacation business in the Toronto area and a regional office in Montreal.
Financial terms of the transaction were not disclosed.
