Authorities of Canada approves acquisition of Sunwing Holidays and Sunwing Airways by WestJet Airways Ltd. with strict phrases and situations

OTTAWA, ON , March 10, 2023 /CNW/ – The Authorities of Canada’s precedence is to make sure a secure and aggressive air sector for travellers, staff and communities. It’s also dedicated to supporting Canada’s aviation business, whereas creating good, middle-class jobs for Canadians and constructing an economic system that works for everybody.

At this time, the Minister of Transport, the Honourable Omar Alghabra, introduced that following Transport Canada’s evaluation of the general public curiosity, which integrated the findings of the Commissioner of Competitors, and consultations with Canadians, shopper safety teams, unions and business, the Authorities of Canada has accepted the acquisition of Sunwing Holidays and Sunwing Airways by WestJet Airways Ltd., topic to strict phrases and situations which might be within the curiosity of Canadians.

The choice to approve this acquisition was not taken flippantly, particularly contemplating the delays and bottlenecks skilled by travellers final summer time, in addition to the customer support and communications challenges by Sunwing throughout the current vacation season. In figuring out the proposed buy is within the public curiosity, the federal government thought-about a broad vary of things, resembling ranges of service, social and financial implications, the monetary well being of the air transportation sector, and competitors.  

Given the present air sector panorama, it was essential to make sure that the ultimate settlement provided the absolute best consequence for Canadians. The acquisition will assist keep the steadiness of the sector as Sunwing will proceed to supply extra inexpensive trip packages to Canadians, whereas being financially supported by WestJet.

The acquisition will even lead to enforceable phrases and situations meant to guard the pursuits of travellers. These strict phrases and situations embody:

• Extending Sunwing trip package deal choices to 5 new Canadian cities;
• Sustaining capability on routes most affected by the merger;
• Rising regional connectivity;
• Bettering baggage dealing with for higher passenger expertise;
• Sustaining a holidays enterprise head workplace within the Toronto space and a regional workplace within the Montreal space for at least 5 years;
• Rising web employment by 20 per cent over three years within the Toronto workplace;
• Making certain higher passenger expertise by investing in IT know-how options to enhance Sunwing’s communications;
• Supplying airfare information on trip packages for monitoring of post-acquisition worth traits; and
• Steadily ending Sunwing’s seasonal leasing follow to guard Canadian jobs.

The Authorities of Canada can be engaged on vital reforms to the Air Passenger Safety Laws to make sure passenger rights are much more protected. These modifications will place Canada on the forefront of passenger protections globally and, along with different steps to be taken, will assist stop the irritating experiences of passengers final summer time and over the vacation season.

Quote

“At this time’s determination was not taken flippantly, particularly in gentle of every thing that occurred over the vacations for many who flew with Sunwing. After contemplating the professionals and cons, we’ve made the choice that can enable Sunwing to proceed to supply inexpensive trip packages to Canadians, create extra good jobs, and defend present jobs in addition to Canadians who’ve already bought tickets. The settlement will even be accompanied by strict phrases and situations to make sure the general public curiosity, together with with regard to competitors, connectivity and baggage dealing with.”

The Honourable Omar Alghabra                                      
Minister of Transport

Fast Info

• The evaluation of the general public curiosity concerned rigorous evaluation and consultations with Canadians and stakeholder teams. On-line public consultations ran from Might to July 2022.
• Within the absence of this acquisition, Canada’s air transport sector might have confronted larger instability, together with job losses, a major discount of inexpensive trip choices, detrimental impacts on passengers, and the Authorities not being repaid sizable loans.
• Sunwing is a privately owned journey firm based in 2002 with headquarters in Toronto and a regional workplace within the Montreal space. Sunwing at the moment employs roughly 2,200 folks.

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SOURCE Transport Canada

For additional data: Nadine Ramadan, Press Secretary and Communications Advisor, Workplace of the Honourable Omar Alghabra, Minister of Transport, Ottawa, [email protected]; Media Relations, Transport Canada, [email protected], 613-993-0055