Aviation
Commercial /
Americas
Acquisition
WestJet announces agreement to acquire Low Cost Sunwing
Boeing 737
WestJet
aeroprints.com, CC BY-SA 3.0, via Wikimedia Commons
Rafael Ramos
3/3/2022
Canadian airline WestJet has announced an agreement to acquire Low Cost Sunwing Airlines and its vacation arm, Sunwing Vacations. The revelation was made on Wednesday (2).
Sunwing Airlines shareholders will receive a stake in WestJet. The two companies operate exclusive Boeing fleets. In this way, maintenance and crew training costs will be minimized, as they are the same aircraft models, with 96 737-700s, -800s and MAX 8s and six 787 Dreamliners for WestJet and 22 737-800s and six MAX 8s for Sunwing.
"This is an exciting time for the travel industry of WestJet, Sunwing and Canada. We are bringing together two highly complementary businesses with powerful brands to strengthen our successful leisure business and deliver greater value to our guests... opportunities for our people, our operational partners and support recovery from a global pandemic that has been particularly challenging for the Canadian travel and tourism industry, including local airports and companies we work closely with,” said WestJet CEO, Alexis von Hoensbroech.
WestJet says the deal should boost Canadian jobs as the company's capacity is expected to increase as it transforms seasonally operated aircraft into year-round jets. Sunwing usually rents a good part of its fleet during the winter season.
“There will be fewer aircraft from Europe, which means more aircraft from Canada with Canadian crews. So that will eventually mean more jobs,” said Hoensbroech.
In addition, the acquisition will not cause an increase in fares paid by passengers, as more routes will face greater competition and passengers will not suffer from market consolidation.
"We have a very promising future as part of The WestJet Group, which is one of the only airlines in the world that has not issued debt or equity during the pandemic, or accepted industry-specific government aid. The combination of its strong balance sheet and track record growth with Sunwing's unparalleled experience in creating differentiated vacation packages will ensure the success of the new vacation division. My team and I are excited about the future and look forward to offering even more vacation destinations for Canadians at affordable prices." Sunwing CEO Stephen Hunter.
Travel packages and tickets will continue to be sold under both brands for the time being, while also maintaining their offices. The acquisition would boost WestJet's flights to popular holiday destinations after two years of hardship due to the coronavirus pandemic.
Boeing 737
Sunwing
abdallahh, CC BY 2.0, via Wikimedia Commons
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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